Dallas-based Tenet showed year-over-year improvement on its net losses though revenues slipped to $3.86 billion.
Tenet Healthcare Corp. cut its net losses down to $27 million during Q1 after reporting $98 million in losses during Q1 2018, according to its earnings report released Monday afternoon.
Tenet also recorded net operating revenues from hospital operations at $3.86 billion, down 2.2% year-over-year due to hospital divestitures, though net patient service revenues on a same-hospital basis totalled $3.56 billion, a 1.9% increase.
The company also experienced a slight decline in admissions on a same-hospital basis at 0.1% but benefitted from adjusted admissions increasing by 0.6% and revenue per adjusted admission increasing by 1.3%.
The Dallas-based for-profit hospital operator also produced an adjusted EBITDA of $613 million, in line with its company outlook, though still down from $665 million this time last year.
Tenet's overall performance marked the second straight quarter of incremental improvement compared to previous quarterly periods, although its hospital segment continues to produce inconsistent results.
"We had a solid start to the year, building on the many positive changes we made across the enterprise in 2018," Ronald Rittenmeyer, CEO of Tenet, said in a statement. "These changes include the continued addition of new leadership as well as an infusion of fresh thinking, which are helping to transform our approach to operations and overall enterprise culture. In the first quarter, we continued to make progress in each of our business segments through rigorous implementation of our strategic initiatives, and we were pleased with our performance, both operationally and financially. As we move through the year, we remain focused on revenue growth and expense management to sharpen operations and our competitive position.”
On a positive note, the company's adjusted earnings per share (EPS) were $0.54, beating the highest range of the Tenet's outlook.
Tenet has reiterated its outlook for revenue, adjusted EPS, adjusted EBITDA, and adjusted free cash flow. The company has updated its guidance for net income to a range of $17 million to $117 million, and an EPS between $0.16 and $1.10.
As noted in last quarter's earnings recap, Tenet finished divesting its remaining presence in the Chicago area during Q1, selling three local hospitals.
Tenet's cash and cash equivalents continued to fall in Q1, registering at $252 million, down from $411 million at the end of Q4.
The company's ambulatory care segment, benefitted from revenue growth for the full year in 2018, suffered a 3.6% drop in net operating revenues due in part to the sale of Aspen Healthcare in Q3 2018.
However, after normalizing for the Aspen sale, Tenet reported an adjusted EBITDA from the ambulatory care segment that grew 12% year-over-year.
ADDITIONAL TENET Q1 EARNINGS REPORT HIGHLIGHTS:
- Total outpatient visits declined 7% year-over-year in Q1.
- Net patient revenues grew marginally in managed care and indemnity and other segments, though Medicare and uninsured segments slipped during the same period of time.
- Total selected operating expenses grew 4% in Q1.
For complete financial information, review Tenet's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
Photo credit: Milan, Italy - November 1, 2017: Tenet Healthcare logo on the website homepage. - Image / Photo credit: Casimiro PT / Shutterstock.com
The Dallas-based for-profit hospital operator also produced an adjusted EBITDA of $613 million, in line with its company outlook, but down from $665 million in Q1 2018.
CEO Ronald Rittenmeyer is enthused by his company's performance in Q1, calling it "a solid start to the year."
Tenet has reiterated its outlook for revenue, adjusted EBITDA, and adjusted free cash flow.