Dallas-based Tenet Healthcare Corp.'s admissions and revenues grew in the third quarter of this year, which was partially due to the Patient Protection and Affordable Care Act.
Here are five things to know about Tenet's third quarter financial results:
1. Tenet recorded $4.18 billion in third-quarter net operating revenues, which is a 6 percent increase over the $3.94 billion the hospital operator posted in the third quarter of last year.
2. Volume growth was one of the main contributors to the increase in revenue. The hospital operator's paying admissions grew by 6.1 percent in the third quarter. In addition, emergency department visits grew by 5.1 percent. Tenet estimates the PPACA contributed 40 percent of its volume growth.
3. Tenet's health plan revenues decreased by $89 million in the third quarter of this year, due to a reduction of covered lives under a contract with the Arizona Medicaid program and from not receiving revenue from the California Provider Fee program. Excluding the effect of the absence of the revenue from the California Provider Fee program, patient revenue of bad debt expense per adjusted admission increased by 2.5 percent.
4. The hospital operator's commercial managed care revenue increased 6.2 percent per admission and 2.5 percent per outpatient visit in the third quarter of this year.
5. Tenet posted net income of $9 million for the third quarter of this year, which is a significant decrease from the $28 million it posted in the third quarter of 2013. The third quarter of 2014 included a $95 million increase in pre-tax expense compared to the same quarter last year.
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