Tenet's 3Q Profit Plummets Due to Tax Benefits Associated With Loss Carryforward

Dallas-based Tenet Healthcare's net income in the third quarter of 2011 was $6 million, down from the $932 million in net income reported in the same quarter of 2010, according to a Tenet news release (pdf).

The low income posting was due to the recognition of $981 million of tax benefits associated with Tenet's net operating loss carryforward and a loss of $90 million from early extinguishment of debt.

However, Tenet's net operating revenue totaled $2.34 billion in the third quarter of 2011, up 3.5 percent from the third quarter of 2010. Tenet President and CEO Trevor Fetter said the volume growth was strong in the third quarter and was attributed to a 2.3 percent increase in adjusted admissions and a 3.2 percent increase in surgeries from last year.

Tenet, which currently owns 49 hospitals, posted net income of $134 million through the nine months ended Sept. 30, 2011, down 87 percent from the first nine months of last year. Net operating revenue for the first nine months of 2011 was $7.22 billion, up 4.6 percent from the first nine months of 2010.

Related Articles on Tenet Healthcare:

Tenet Unveils Plans for 80-Bed Teaching Hospital in Florida
Tenet to Battle Over Fort Mill, S.C. Hospital Rights in Court Again
Did Rebuking CHS Lead to Tenet Stock Losses?

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