Tenet Healthcare Corp. has released its first quarter 2010 earnings, including net operating revenue of $77 million, up seven percent from first quarter 2009, according to a Tenet news release.
Admissions and outpatient visits declined by 2 percent and 1.8 percent, respectively, which the company attributed to a light flu season and weather-related disruptions in some markets. Commercial managed care admissions and outpatient visits declined by 7.2 percent and 6.4 percent, respectively, but the acuity of those volumes increased. Outpatient revenue growth increased 7.7 percent and managed care revenues grew 2.8 percent, due primarily to this increase in higher-acuity admissions and visits, according to the release.
Adjusted EBITDA for the quarter was $298 million, an increase of $20 million, or 7.2 percent, as compared to $278 million for the first quarter of 2009. Tenet President and CEO Trevor Fetter attributed the EBITDA growth to strong unit revenue growth despite soft volumes.
Total controllable operating expenses increased by 1.3 percent, or 3.5 percent per adjusted patient day. This increase included a 4.5 percent increase in salaries, wages and benefits per adjusted patient day, primarily the result of salary increases awarded in Oct. 2009. Other operating expenses declined by $5 million, including a decline in malpractice expense.
Bad debt expense increased by $33 million, or 21.2 percent, and was attributed to an 11.9 percent increase uninsured admissions.
Adjusted net cash used in operating activities from continuing operations was negative $17 million and adjusted free cash flow from continuing operations was negative $100 million, reflecting capital expenditures of $83 million. This reflects an improvement from the negative $133 million of adjusted free cash flow from continuing operations in the first quarter of 2009, according to the release.
Read the release on Tenet's earnings (pdf).
Admissions and outpatient visits declined by 2 percent and 1.8 percent, respectively, which the company attributed to a light flu season and weather-related disruptions in some markets. Commercial managed care admissions and outpatient visits declined by 7.2 percent and 6.4 percent, respectively, but the acuity of those volumes increased. Outpatient revenue growth increased 7.7 percent and managed care revenues grew 2.8 percent, due primarily to this increase in higher-acuity admissions and visits, according to the release.
Adjusted EBITDA for the quarter was $298 million, an increase of $20 million, or 7.2 percent, as compared to $278 million for the first quarter of 2009. Tenet President and CEO Trevor Fetter attributed the EBITDA growth to strong unit revenue growth despite soft volumes.
Total controllable operating expenses increased by 1.3 percent, or 3.5 percent per adjusted patient day. This increase included a 4.5 percent increase in salaries, wages and benefits per adjusted patient day, primarily the result of salary increases awarded in Oct. 2009. Other operating expenses declined by $5 million, including a decline in malpractice expense.
Bad debt expense increased by $33 million, or 21.2 percent, and was attributed to an 11.9 percent increase uninsured admissions.
Adjusted net cash used in operating activities from continuing operations was negative $17 million and adjusted free cash flow from continuing operations was negative $100 million, reflecting capital expenditures of $83 million. This reflects an improvement from the negative $133 million of adjusted free cash flow from continuing operations in the first quarter of 2009, according to the release.
Read the release on Tenet's earnings (pdf).