The Dallas-based for-profit hospital operator's same-hospital admissions fell 10.6% year-over-year in Q4 while same-hospital adjusted admissions fell nearly 15%.
Tenet Healthcare Corp. posted a net income from continuing operations of $414 million in Q4 2020, improving upon a net loss of $3 million in Q4 2019, according to the company's latest earnings report released Tuesday afternoon.
For the full year, the Dallas-based for-profit hospital operator reported a net income of $399 million, one year after recording a net loss of $226 million.
Tenet produced a net income from continuing operations per diluted share of $3.86 for the quarter and $3.75 for the year, both improvements on losses in 2019.
Additionally, Tenet's quarterly adjusted EBITDA rose $33 million year-over-year, while its full year adjusted EBITDA rose more than $400 million.
Though full year net operating revenues dropped below $15 billion for Tenet's hospital segment, its quarterly net operating revenues rose to over $4 billion. Similarly, facilities net patient service revenues on a same-hospital basis slipped for the full year but rose during the quarter.
"In 2020, we along with so many others faced challenges we had never experienced in the history of our company. Our ability to perform under such challenging and constantly evolving circumstances underscores the strength of all of our colleagues within the Tenet enterprise and the positive impact of our multi-year turnaround," Ronald Rittenmeyer, CEO of Tenet, said in a statement. "We implemented a comprehensive and active response to the pandemic, focused on the safety of our personnel and our patients, and steadily improved performance in each operating segment as we moved through the year. We continued to advance top-tier clinical programs to serve growing acute and chronic care needs in our hospitals, while completing a transformational ambulatory transaction and pivoting our business toward higher-growth, lower cost-of-care settings. And, we continued to post an improved level of margin performance at Conifer, whose support of all of their clients was exceptional."
The transactional highlight of Tenet's quarter was a $1.1 billion acquisition of 45 ambulatory surgical centers from Surgical Center Development, Inc.
Another major development for Tenet in Q4 was the canceled sale of two Saint Francis hospitals to Methodist Le Bonheur Healthcare.
The deal for the two hospitals and six Medpost urgent care centers affiliated with the hospitals was announced in December 2019 but ran into obstacles in November 2020, when the Federal Trade Commission moved to block the $350 million acquisition.
In late December, the two healthcare organizations announced a joint decision to call off the transaction, with Sally Hurt-Deitch, CEO of Saint Francis, saying the move was the "best course for both organizations."
Tenet has continued to deal with challenges to its patient volumes in light of the third wave of COVID-19 cases.
Same-hospital admissions fell 10.6% year-over-year in Q4 while same-hospital adjusted admissions fell nearly 15%.
Still, the company managed to only have total selected operating expenses in the hospital segment increase 0.9% in Q4.
Tenet attributed this to continuing cost efficiency initiatives and "necessary cost reductions due to the decline in patient volumes associated with the pandemic, substantially offset incremental costs as a result of the pandemic, including temporary staffing and premium pay as well as higher supply costs for PPE."
At the end of 2020, Tenet had $2.4 billion in cash and cash equivalents.
For complete financial information, review Tenet's filing with the Securities and Exchange Commission.
“Our resilience as an organization was tested, and we outperformed, delivered on our commitments and continued building a framework for our future growth and success. We followed our stated strategy ensuring the improvements were sustainable and the changes became part of our permanent fabric.”
Ronald Rittenmeyer, CEO of Tenet Healthcare Corp.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: KIEV, UKRAINE - Dec 18,, 2018: Tenet Healthcare company logo seen displayed on smart phone / Editorial credit: IgorGolovniov / Shutterstock.com