Tax benefit boosts Tenet's 3Q earnings

Dallas-based hospital Tenet Healthcare (NYSE: THC) reported a dramatic bounce back to profitability in the third quarter ending Sept. 30, although that was mostly attributable to tax benefits regarding carryover losses.

Tenet reported net income of $940 million on revenue of $2.2 billion for the quarter, compared to a year-ago quarterly loss of $1 million, also on $2.2 billion of revenue.

Despite the spike in net income, operating earnings were $203 million, down 37 percent from the $240 million in operating earnings reported for the third quarter of 2009.

Of Tenet's earnings, $981 million was attributable to new tax benefits regarding carryover losses that had previously been deferred.

"Recognition of the value of our deferred tax assets provided a significant boost to our net income in the third quarter and reflects the progress we have made in achieving sustained and sustainable profitability," said Tenet CEO Trevor Fetter in a statement. "The soft economy, however, continued to challenge our volume growth and exerted pressure on our operating margins."

Hospital admissions declined 3.5 percent during the quarter, while outpatient visits were down 2 percent. Meanwhile, operating expenses were up 2.4 percent.

Despite those numbers, Tenet did raise its projected operating earnings for 2010 slightly, to a range of between $1.05 and $1.1 billion.

For more:
- read the Tenet press release
- read the Dow Jones article

Suggested Articles

Data and analytics company Health Catalyst reported its Q2 results the same week it announced some major deals.

Ballad Health saw its profits from the latest financial quarter decline by 22% due to volume declines from the COVID-19 pandemic and other expenses.

Blue Cross NC's Blue Premier value-based care program generated $153 million in savings during its first year, new data show.