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 The company reported fewer patient visits in the quarter, continuing
an industry-wide trend reported by rivals, including the largest
hospital operator HCA Healthcare Inc <HCA.N> which said last month
that its results were challenged by a softer growth in patient
numbers.
Tenet's adjusted admissions on a same-hospital basis, which include
patients who stay in the hospital overnight and those treated on an
outpatient basis, fell 1.4 percent in the second quarter ended June
30.
"We are not surprised by these results and view the admissions
growth headwinds facing the hospital sector as longer-term issues
that will not be solved in the coming quarters," Piper Jaffray
analyst Sarah James said in a client note on Monday.
Hospital operators' stocks have been volatile due to uncertainty
surrounding the fate of former President Barack Obama's signature
healthcare law, formally known as the Affordable Care Act, which
benefited the hospitals as the law expanded insurance coverage.
Tenet forecast full-year adjusted earnings per share from continuing
operations between 69 cents to 99 cents, from its previous forecast
of $1.05 to $1.30.
The company also lowered its full-year revenue forecast to a range
of $19.1 billion to $19.4 billion, from $19.7 billion to $20.1
billion.
The hospital operator said on Monday its full-year outlook will be
impacted by the sale of its Houston-based assets announced last
quarter, lower patient volumes and lower-than-expected revenue from
its Conifer unit.
Tenet, which had long-term debt of about $15 billion as of June 30,
has been implementing cost-cutting programs, focused on raising
hospital segment margins to turn its business around.
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Earlier this month, the hospital operator completed divestment of
three of its Houston-based hospitals to HCA Holdings.
Net loss attributable to the company's shareholders widened to $55
million, or 55 cents per share, in the second quarter, from $46
million, or 46 cents per share, a year earlier.
Excluding items, the company lost 17 cents per share, compared with
analysts' average estimate of a loss of 16 cents, according to
Thomson Reuters I/B/E/S.
Net operating revenue fell 1.4 percent to $4.80 billion, missing
estimates of $4.90 billion.
Shares of the Dallas-based company were down 11.2 percent at $14.90
in after-hours trading on Monday.
(Reporting by Divya Grover in Bengaluru; Editing by Shounak Dasgupta)
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