The Dallas-based for-profit hospital operator posted a $9 million loss in Q3 and saw revenues down 2.7% year-over-year though adjusted EBITDA rose $70 million.
One quarter after posting gains in net income from operations, Tenet Healthcare slid back into losses and declining revenue metrics, according to its Q3 earnings report released Monday afternoon.
The healthcare company reported $9 million in losses attributable to shareholders, down from the $24 million in net income during Q2 but still an improvement compared to the $366 million net loss in Q3 2017.
Net operating revenues from hospital operations totalled $3.76 billion, down 2.7% year-over-year, while on a same-hospital basis, Tenet generated net patient revenues of $3.43 billion, up 6% from Q3 2017.
A bright spot for Tenet was a slight rise in adjusted admissions, up 0.3% year-over-year, however these gains were offset by hospital divestitures during Q3.
Tenet's cash and cash equivalents reached $500 million, well above the $403 million Tenet reported at the end of Q2. Additionally, Tenet's adjusted EBITDA grew from $507 million in Q3 2017 to $577 million in Q3.
"We had a solid quarter of results at both USPI and Conifer. Our hospitals did not meet our expectations and we are focusing on specific areas to address those gaps," Ronald Rittenmeyer, CEO of Tenet, said in a statement. "Strengthening enterprise operations remains our primary focus – and we will continue moving with urgency to implement targeted growth initiatives, achieve operational efficiencies, make further enhancements to our facility portfolio and instill culture changes to drive accountability."
ADDITIONAL TENET Q3 EARNINGS REPORT HIGHLIGHTS:
Revenues per adjusted admission rose 5.7% on a same-hospital basis.
Same-hospital exchange outpatient visits increased by 8.1% during the quarter, while same-hospital exchange admissions were down 4% over the same period.
Ambulatory care continued to be strong for Tenet, generating $502 million in net operating revenues, up 7.3% year-over-year.
For complete financial information, review Tenet's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders.
Tenet reported losses after a quarter of positive net income and saw net operating revenues dip 2.7% year-over-year.
Ambulatory care remains a strong segment for the company, generating $502 million in net operating revenues.
CEO Ronald Rittenmeyer said Tenet's hospitals "did not meet our expectations."