Tenet Healthcare's revenue increased year over year in the third quarter of 2019, but the Dallas-based company ended the period with a net loss from continuing operations of $233 million, primarily due to a debt refinancing.
Tenet reported revenues of $4.57 billion in the third quarter of this year, up from $4.49 billion in the same period a year earlier. Revenues from the company's hospital operations segment grew 2.3 percent year over year. On a same-hospital basis, net patient service revenues and admissions increased 5.8 percent and 3.6 percent, respectively, year over year. Revenues from Tenet's ambulatory segment also increased in the third quarter of this year.
The company said revenues from Conifer, its revenue cycle subsidiary, decreased in the third quarter of 2019 due to hospital divestitures by Tenet and other customers. Conifer's adjusted EBITDA grew 11.1 percent year over year.
After factoring in operating expenses and one-time costs, Tenet reported a net loss from continuing operations attributable to shareholders of $233 million in the third quarter of 2019, compared to a net loss of $9 million in the same period a year earlier. Tenet said the net loss in the third quarter of this year was primarily attributable to a $180 million pre-tax loss associated with a $4.2 billion debt refinance transaction that reduces its future annual cash interest payments and retired all significant debt maturities until April 2022.
The company reported adjusted net income of $61 million in the third quarter of this year, up from $30 million in the same quarter of 2018.
Tenet Executive Chairman and CEO Ronald A. Rittenmeyer said the company's performance in the third quarter helps establish a strong foundation for growth.
"We had a very positive third quarter with performance improvement in each of our operating segments. For the third consecutive quarter, our hospitals delivered accelerating volume growth and we generated strong results at both USPI and Conifer," he said in an earnings release. "In addition to driving improvements in our financial results, we made continued steady progress on many of the core initiatives we established for 2019 and discussed at the beginning of the year, including cost savings, physician recruitment, ambulatory acquisitions, marketing and board refreshment."
Shares of Tenet closed Nov. 4 at $27.21 per share, up from $25.88 Nov. 1.
More articles on healthcare finance:
CMS' final outpatient, physician payment rules for 2020: 9 things to know
HCA's profit dips to $612M in Q3
CHS slashes net loss by $308M, plans to sell more hospitals