Tenet Healthcare posted a $232 million loss in the third quarter, a drop largely attributed to the Dallas-based hospital giant's $4.2 billion in debt refinancing.
In its earnings released after the close of the market Monday evening, the company reported the net loss of $2.25 per diluted share, down from a loss of nine cents per diluted share in the third quarter of 2018. Net operating revenues reached $4.6 billion in the third quarter, up 1.8% from revenues of $4.5 billion in the same quarter a year earlier.
Operating revenues from hospital operations were $3.9 billion, up 2.3% over the same period last year, credited to revenue growth on a same-hospital basis, partially offset by hospital divestitures.
Admissions increased 3.6% on a same-hospital basis, adjusted admissions increased 2.8% and revenue per adjusted admission increased 2.9%. Surgeries grew by about 1%.
“We had a very positive third quarter with performance improvement in each of our operating segments," said Ronald Rittenmeyer, executive chairman and CEO, in a statement. "In addition to driving improvements in our financial results, we made continued steady progress on many of the core initiatives we established for 2019 and discussed at the beginning of the year, including cost savings, physician recruitment, ambulatory acquisitions, marketing and board refreshment … While we have more to accomplish, we have established a solid foundation for growth and performance.”
Revenue increases included $58 million from the California Provider Fee program in the third quarter of 2019 compared to $71 million in the third quarter of 2018. The results for the quarter also included decreased revenue and additional expenses related to Hurricane Dorian as well as a one-time increase in contract labor due to a one-day strike by union nurses at 12 of its hospitals.
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In all, Tenet refinanced $4.2 billion in outstanding notes in order to reduce future annual cash interest payments and increased its line of credit borrowing capacity to $1.5 billion. But it resulted in a $180 million pre-tax loss.
"These actions enhance our financial flexibility, reduce future interest payments and eliminate all significant debt maturities until April 2022," Rittenmeyer said.
This story will be updated following Tenet's earnings call Tuesday morning.