Tenet Healthcare saw its stock price hit a 23-year high this week, landing at $160.50 as of Aug. 23.
The Dallas-based company, which operates 52 acute-care hospitals and around 640 outpatient sites, saw its stock price (NYSE: THC) exceed $160 August 22, marking its highest level since late 2001. This represents a 114% increase compared to one year ago.
This surge follows Tenet's strong financial performance, with a net income of $259 million in the second quarter of 2024 — a nearly 111% jump from $123 million in the same quarter of 2023. In Q1, the system posted a net income of $2.2 billion, largely associated with the sale of three hospitals in South Carolina and six in California. Tenet Chairman and CEO Saum Sutaria, MD, noted that results through Q2 "have significantly exceeded our expectations."
In July, Tenet raised its EBITDA outlook for fiscal year 2024, projecting a range of $3.8 billion to $4 billion, up $300 million from the previous year.
Throughout 2024, Tenet has restructured its portfolio, selling hospitals in high-growth markets at favorable EBITDA levels and investing $450 million into its ambulatory business, United Surgical International Partners, which acquired 45 ASCs in Q1. Dr. Sutaria has emphasized that the company is "entering a new era" with a greater focus on its ambulatory surgical business.
So far in this year, Tenet has completed or is pursuing hospital sales to Winston-Salem, N.C.-based Novant Health, Orange, Calif.-based UCI Health, Roseville, Calif.-based Adventist Health, and Orlando Health.