Dallas-based Tenet Healthcare Corp. beat expectations as it reported its second-quarter earnings on Monday evening.
The healthcare giant reported net income attributable to shareholders of $15 million, or 14 cents per diluted share, in the second quarter. That was down from $24 million, or 23 cents per diluted share, in the second quarter of 2018.
It reported adjusted diluted earnings of 56 cents in the second quarter, above the midpoint of its outlook and up from 49 cents in the second quarter of 2018. Tenet reported $4.6 billion in revenue for the quarter, up from $4.5 billion in revenue the same quarter of 2018.
“We delivered another strong quarter which included a very meaningful improvement in volume growth in our hospital portfolio, continued volume and earnings growth at USPI and strong financial results at Conifer," said Ronald A. Rittenmeyer, executive chairman and CEO, in a statement. "We are continuing to take appropriate actions to improve our cost structure and our focus on improving volume growth is showing results.”
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Tenet saw net operating revenues in hospital operations and other segments reach $3.8 billion in the second quarter of 2019, up 2.5% from the second quarter of 2018. The increase in revenue was attributed primarily to revenue growth on a same-hospital basis, partially offset by hospital divestitures.
On a same-hospital basis, net patient service revenues were $3.5 billion in the second quarter of 2019, up 5.7% from the second quarter of 2018. Admissions increased 3.3% on a same-hospital basis, adjusted admissions increased 2.2% and revenue per adjusted admission increased 3.4%.
The earnings report comes on the heels of recent news that Tenet will spin off its $1.5 billion revenue cycle subsidiary Conifer Health Solutions as a separate, publicly traded company.
During the second quarter, Conifer's revenue declined 8% to $355 million from $386 million in the second quarter of 2018. Officials attributed the drop to client attrition following divestitures from Tenet and other customers.
The subsidiary generated $103 million of adjusted EBITDA in the second quarter of 2019, up 13.2% from $91 million in the second quarter of 2018. The increase was largely attributed to improvements in Conifer’s cost structure.
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Tenet's ambulatory care segment posted net operating revenues of $524 million in the second quarter of 2019, down 1.3% compared to $531 million in the second quarter of 2018. The decline in revenue was due to the divestiture of Aspen Healthcare, the company’s former business in the U.K. that was sold in the third quarter of 2018, officials said.
Tenet will hold its second-quarter earnings call at 10 a.m. on Tuesday. Check back for updates on this story.