Tenet posts $2.2B net income in Q1

Dallas-based Tenet Healthcare posted a net income of $2.2 billion in the first quarter of 2024 up from $143 million posted in the same period last year, according to its April 30 financial report. 

"We have had an outstanding start to the year highlighted by strong growth in revenues, admissions and profitability," Tenet Chairman and CEO Saum Sutaria, MD, said in the report. "Our operational excellence and focus on continuous improvement helped enable our momentum as we transform our company through strategic portfolio decisions, disciplined capital allocation and debt reduction."

Here are seven takeaways from the report:

1. The first-quarter results included a pre-tax gain of $2.5 billion ($1.86 billion after tax) associated with the sales of three hospitals in South Carolina and six in California.

2. Tenet posted net operating revenues of $5.4 billion for the quarter ended March 31, up from $5 billion posted over the same period last year. 

3. The health system's adjusted EBITDA was $1 billion for the quarter, up from $832 million in the first quarter of 2023. Tenet said the results reflected "strong same-hospital admission growth, favorable payer mix and improved contract labor costs, partially offset by higher medical fees." 

4. The full-year adjusted EBITDA outlook is now expected to range between $3.5 billion and $3.7 billion, a $215 million increase.

5. Tenet's hospital segment, which now includes its Conifer arm, saw revenues increase by 6.2% over the same period last year, which it attributed primarily to increased admissions, favorable payer mix and improved pricing yield, partially offset by the effect of hospital sales. 

6. Net operating revenues for its ambulatory segment increased 9.9% over the same period last year, driven by "strong net revenue per case growth, acquisitions and opening of de novo facilities, and increased service lines."

7. Salaries, wages and benefit expenses were $2.3 billion for the quarter, up 2.8% from the same period last year. Supply expenses were $928 million, up 4.2%.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars