At a time when many hospitals would find large numbers of uninsured potential patients unappealing, for-profit hospital operator Tenet Healthcare is pursuing what appears to be a diametrically opposed policy, CNBC reported.
"The more you're exposed to states with large numbers of uninsured people, the better it is for a hospital in the future," Tenet Chief Executive Officer Trevor Fetter told CNBC. He noted that the organization wants to operate in key states including California, Texas and Florida, the latter two of which are not expanding their Medicaid programs under the Affordable Care Act.
Tenet recently completed its acquisition of Vanguard Health Systems, which will give it a significant presence in the Texas market--its new hospitals there will account for about $3 billion in annual revenue, Fetter told CNBC.
However, Fetter noted that 11 million more Americans will have health insurance in 2014 than they do this year. "As those people gain coverage, that will provide upside for us," he said. Tenet has been quite aggressive on rates with payers providing coverage through the health insurance exchanges.
The number of uninsured in the U.S. will drop by 25 million by the end of the decade, according to a report from the Congressional Budget Office.
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