Dallas-based Tenet Healthcare has reported a net loss of $26 million for the second quarter of 2014, compared to a net loss of $50 million for the second quarter of 2013.
The net loss is partially attributable to a $92 million increase in pre-tax interest expense in the second quarter of 2014 compared to the second quarter of 2013. The increased interest expense was largely due to the $4.6 billion of financing related to the acquisition of Nashville, Tenn.-based Vanguard Health Systems and the $300 million used to finance share repurchases since March 31, 2013.
Tenet's net operating revenues were $4.04 billion, a 2.6 percent increase over the $3.94 billion in second quarter 2013 revenues. The revenue growth was due to a number of factors, including volume growth and improved terms in commercial managed care contracts. Tenet experienced admissions growth of 2.8 percent over the second quarter of 2013, with paying admissions increasing by 4.8 percent.
The company's second-quarter loss from continuing operations was $10 million, compared to $53 million for the corresponding quarter in 2013.
During the second quarter, the company's operating expenses increased by 0.7 percent. The increase reflects an increase in employee compensation and volume growth in Tenet's service lines that are supply intensive.
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