Dallas-based Tenet Healthcare reported net income of $49 million in the last quarter of 2012 and $141 million for the 2012 fiscal year.
The $49 million of quarterly net income was a significant improvement over the company’s $76 million in the same period in 2011. Its 2012 four-quarter net operating revenue was $2.33 billion, a 7.3 percent increase from $2.17 billion in the same period the prior year. The company’s 2012 profit was $141 million, compared with $58 million in 2011.
President and CEO Trevor Fetter attributes these figures to strict cost control and operations, which he said helped it report strong numbers.
“The fourth quarter provided a strong finish to 2012, which became our ninth consecutive year of consistent earnings growth, with compound annual EBITDA growth of 15 percent,” Fetter said in a statement. “… Our volume growth was one of the strongest in the investor-owned healthcare provider sector, and we recorded our ninth consecutive quarter of positive growth in adjusted admissions.
Tenet’s same-hospital surgeries rose 7.5 percent in the fourth quarter and 5.2 percent for 2012. Outpatient visits increased 7.3 percent in the fourth quarter and 5.4 percent in 2012. Tenet’s annual admissions increased 2.2 percent.
- Adjusted admissions increased 2.9 percent in the fourth quarter led by strong growth in outpatient visits of 7.3 percent.
- Approximately 80 percent of the outpatient visit growth was organic. Total admissions were flat.
- Total emergency department visits increased 8.6 percent and emergency department admissions increased 1.7 percent.
- The sum of uninsured and charity admissions increased 1.1 percent.
- Bad debt expense as a percent of revenues was 7.9 percent, an increase of 20 basis points compared to 7.7 percent in the fourth quarter of 2011.
- The increase in bad debt expense was largely the result of the increase in uninsured patient volumes.
- Our self-pay collection rate was 28.9 percent in the fourth quarter of 2012, a 120 basis point improvement compared to 27.7 percent in the fourth quarter of 2011.
- Net operating revenues were $2.331 billion, an increase of $159 million, or 7.3 percent, compared to net operating revenues of $2.172 billion in the fourth quarter of 2011.
- Commercial managed care revenue increased 5.2 percent, which reflected a 7.1 percent and 7.6 percent increase in commercial managed care revenue per patient day and per outpatient visit, respectively.
- Cash and cash equivalents were $364 million at December 31, 2012 compared to $83 million at September 30, 2012.