Tenet Healthcare cuts forecast on weak patient admissions

From Reuters - August 7, 2017

(Reuters) - Tenet Healthcare Corp (THC.N) slashed its full-year forecasts and reported a bigger-than-expected quarterly loss as the U.S. hospital operator struggled with fewer patient admissions, sending its shares down about 11 percent after the bell.

The company reported fewer patient visits in the quarter, continuing an industry-wide trend reported by rivals, including the largest hospital operator HCA Healthcare Inc (HCA.N) which said last month that its results were challenged by a softer growth in patient numbers.

Tenet's adjusted admissions on a same-hospital basis, which include patients who stay in the hospital overnight and those treated on an outpatient basis, fell 1.4 percent in the second quarter ended June 30.

"We are not surprised by these results and view the admissions growth headwinds facing the hospital sector as longer-term issues that will not be solved in the coming quarters," Piper Jaffray analyst Sarah James said in a client note on Monday.

Hospital operators' stocks have been volatile due to uncertainty surrounding the fate of former President Barack Obama's signature healthcare law, formally known as the Affordable Care Act, which benefited the hospitals as the law expanded insurance coverage.

Tenet forecast full-year adjusted earnings per share from continuing operations between 69 cents to 99 cents, from its previous forecast of $1.05 to $1.30.

The company also lowered its full-year revenue forecast to a range of $19.1 billion to $19.4 billion, from $19.7 billion to $20.1 billion.


Continue reading at Reuters »