Tenet Healthcare Reports Loss

New York Times: November 11, 2003

Reuters

The Tenet Healthcare Corporation, which is the subject of federal investigations into Medicare billing and other issues, reported a third-quarter loss yesterday as a result of bad patient debts and a charge from selling hospitals.

The company, which operates 106 hospitals, lost $308 million, or 66 cents a share, in contrast to a profit of $328 million, or 66 cents, a year earlier.

Revenue declined to $3.30 billion from $3.52 billion.

Tenet's results from continuing operations, which exclude one-time items, were a loss of 50 cents a share, in contrast to a profit of 63 cents a share a year earlier.

Tenet, based in Santa Barbara, Calif., said in October that third-quarter results would be hurt by bad debts from uninsured patients.

Tenet reported its results in a Securities and Exchange Commission filing, where it said it continued to face cost pressures and substantial investigation and legal expenses.

The company's provision for bad debt increased to $522 million from $260 million and it reported a charge of $73 million from discontinued operations.