Tenet Healthcare Corp. has announced its third quarter 2010 financial results, including $932 million in net income, compared to a $3 million loss for the third quarter of 2009, according to a Tenet news release.
Net income in the third quarter of 2010 benefited from the recognition of $981 million of tax benefits, primarily as a result of the reversal of the previously established valuation allowance against deferred tax benefits associated with the company's net operating loss.
Earnings before interest, taxes, depreciation and amortization (EBITDA) — considered by many within the financial industry to be a more accurate measure of a company's performance — was $203 million for the third quarter of 2010, down 15.4 percent from the third quarter last year.
Trevor Fetter, president and CEO of Tenet attributed this decline to a "soft" economy that continued to challenge volume growth and exerted pressure on operating margins.
Admissions and outpatient visits declined by 3.5 percent and 2.0 percent, respectively. Adjusted admissions declined by 1.8 percent.
Net operating revenues were $2.26 billion, unchanged compared to net operating revenues in the third quarter of 2009.
The company raised the lower end of its outlook range for the fiscal year to a new range of $1.05 billion to $1.10 billion due largely to an expected $64 million favorable impact from its California provider fee plan, which is expected to be recognized pending approval from CMS in the fourth quarter.
Read the release on Tenet's earnings (pdf).
Read more coverage on Tenet:
- Tenet Withdraws From Talks to Buy Australia's Healthscope
- Tenet Hospitals Explains its Support of a Ban on Physician-Owned Hospitals
- Tenet CEO Says Hospitals Will Unite Behind Healthcare Reform
Net income in the third quarter of 2010 benefited from the recognition of $981 million of tax benefits, primarily as a result of the reversal of the previously established valuation allowance against deferred tax benefits associated with the company's net operating loss.
Earnings before interest, taxes, depreciation and amortization (EBITDA) — considered by many within the financial industry to be a more accurate measure of a company's performance — was $203 million for the third quarter of 2010, down 15.4 percent from the third quarter last year.
Trevor Fetter, president and CEO of Tenet attributed this decline to a "soft" economy that continued to challenge volume growth and exerted pressure on operating margins.
Admissions and outpatient visits declined by 3.5 percent and 2.0 percent, respectively. Adjusted admissions declined by 1.8 percent.
Net operating revenues were $2.26 billion, unchanged compared to net operating revenues in the third quarter of 2009.
The company raised the lower end of its outlook range for the fiscal year to a new range of $1.05 billion to $1.10 billion due largely to an expected $64 million favorable impact from its California provider fee plan, which is expected to be recognized pending approval from CMS in the fourth quarter.
Read the release on Tenet's earnings (pdf).
Read more coverage on Tenet:
- Tenet Withdraws From Talks to Buy Australia's Healthscope
- Tenet Hospitals Explains its Support of a Ban on Physician-Owned Hospitals
- Tenet CEO Says Hospitals Will Unite Behind Healthcare Reform