Tenet finishes strong quarter with more patients

The third largest hospital operator beat expectations and reported strong profits, due to healthy patient volumes.

Second-quarter income from continuing operations rose from $40 million, or 8 cents per share, to $42 million, or 10 cents per share, Reuters reported. And net operating revenue jumped 6.2 percent to $2.23 billion.

Dallas-based Tenet Healthcare has 50 acute hospitals and 99 free-standing outpatient service centers, according to a Tenet fact sheet. The national health system reported about 5 percent more surgeries, as well as emergency department visits.

It saw 1.5 percent more adjusted inpatient and outpatient admissions, although total admissions (overnight patients) dropped by 0.4 percent, Reuters noted.

Tenet said it was the seventh consecutive quarter in which adjusted admissions were positive.

"Pleased" with the second quarter results that came in above expectations, President and CEO Trevor Fetter said in today's announcement, "This strong performance was driven by growth in patient volumes and revenues."  Fetter cited favorable growth compared to competitors, particularly in the targeted service lines of major trauma and neuro-, thoracic-, oncology and vascular surgeries.

Tenet's competitor and the biggest hospital operator in the country, HCA, saw revenue jump to $8.11 billion in the second quarter of 2012, up 11.9 percent from $7.25 billion in last year's second quarter, it said Monday. The health system largely attributed the rise to strong inpatient admissions.

For more information:
- see the Tenet announcement (.pdf)
- check out the earnings slides (.pdf)
- read the Reuters article