DOW JONES NEWSWIRES
Tenet Healthcare Corp. (THC) again raised its 2009 earnings
forecast as it reported stronger-than-expected interim results for
this quarter.
Shares of the hospital operator rose 5.7% premarket to $5.76.
The stock is up nearly fivefold in 2009, but remains down 16% from
a year earlier.
Tenet now expects 2009 adjusted earnings before interest, taxes,
depreciation and amortization of $900 million to $950 million. That
compares with July's boosted outlook of $810 million to $875
million. The company also raised the low end of its revenue target
by $100 million.
President and Chief Executive Trevor Fetter said Monday that in
the past few months the hospital operator, which has been battling
falling admissions, has seen better-than-expected trends in payer
and patient mix, bad-debt expense and volume growth. Pricing
remains consistent with prior views.
The latest forecast allows for potential deterioration in
bad-debt expenses and business mix, the company said.
The hospital industry has been facing growing numbers of
uninsured patients and unpaid patient bills as unemployment
mounts.
Tenet's July forecast boost was partly on solid cost controls.
The company has been trying to turn itself around following years
of financial and legal trouble, cutting costs and conducting debt
exchanges.
The company on Monday said admissions in the seasonally weak
period rose 0.2% from July 1 to Sept. 8, with paying admissions
flat, commercial managed-care admissions off 4.1% and charity and
uninsured admission up 3.5%. Same-hospital outpatient visits rose
3.8% from July 1 to Aug. 31, with paying outpatient visits and
commercial-managed care visits up 4.4% and 0.8%, respectively.
Charity and uninsured visits fell 1%.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com