Tenet Healthcare's revenue increased year over year in the second quarter of 2019, and the Dallas-based company ended the period with net income of $15 million.
Tenet reported revenues of $4.56 billion in the second quarter of this year, up slightly from $4.51 billion in the same period a year earlier. Revenue from the company's hospital operations segment grew 2.5 percent year over year, as admissions climbed 3.3 percent. Revenues from Tenet's Conifer and ambulatory segments declined.
Tenet said the decline in revenue from its ambulatory care segment was due to the divestiture of London-based Aspen Healthcare. Excluding the divestiture, adjusted earnings before interest, taxes, depreciation and amortization in Tenet's ambulatory segment was up 8.4 percent year over year.
Tenet announced plans July 24 to spin off Conifer, its revenue cycle subsidiary, by the end of the second quarter of 2021. Tenet said Conifer's revenues decreased in the second quarter of this year due to divestitures by Tenet and other customers. Conifer's adjusted EBITDA grew 13.2 percent year over year.
After factoring in operating expenses and one-time costs, Tenet reported net income attributable to shareholders of $15 million in the second quarter of 2019. In the second quarter of last year, the company posted net income of $24 million.
"We delivered another strong quarter which included a very meaningful improvement in volume growth in our hospital portfolio, continued volume and earnings growth at USPI and strong financial results at Conifer," Ronald A. Rittenmeyer, executive chairman and CEO of Tenet, said in an earnings release. "We are continuing to take appropriate actions to improve our cost structure and our focus on improving volume growth is showing results."
Tenet reconfirmed its 2019 outlook for revenue, adjusted EBITDA and adjusted EPS.
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