Dallas-based Tenet Healthcare recorded a profit in the quarter ended Dec. 31 and announced plans to retire $478 million in debt, according to recently released financial documents.
The for-profit hospital operator ended the fourth quarter of 2020 with revenue of $4.92 billion, up from $4.81 billion recorded in the same period one year prior. Net operating revenue for Tenet's hospital segment was $4.07 billion in the fourth quarter of 2020, up from the $3.98 billion recorded in the same period one year earlier. Tenet attributed the increase to higher patient acuity and negotiated rate increases, "which more than offset lower patient volumes as a result of COVID."
After factoring in operating expenses, including $31 million in litigation and investigation costs, Tenet recorded an operating income of $920 million. This compares to an operating income of $454 million recorded in the same quarter one year prior.
Tenet said it recognized $446 million in grant income before taxes in the fourth quarter.
Tenet ended the fourth quarter of 2020 with a net income of $414 million, compared to a $3 million net loss recorded in the fourth quarter of 2019.
Tenet also said it plans to retire $478 million of 7 percent senior unsecured notes due in 2025 using cash on hand. Tenet said it expects its annual cash interest payments to drop by $33 million due to the debt retirement.
For the full 2020 calendar year, Tenet recorded revenue of $17.64 billion, a decrease of 4.5 percent from 2019.
The 65-hospital system also recorded an operating income of $1.99 billion in 2020, up from the $1.54 billion operating income recorded in 2019.
Tenet ended the year with a net income of $399 million. This compares to a net loss of $215 million recorded in 2019.
"Our resilience as an organization was tested, and we outperformed, delivered on our commitments and continued building a framework for our future growth and success. We followed our stated strategy, ensuring the improvements were sustainable and the changes became part of our permanent fabric. We are very proud of every one of our colleagues across the Tenet enterprise for their selfless commitment to our patients, each other and our communities," said Ronald Rittenmeyer, Tenet executive chair and CEO.
Access the full financial report here.