Becker's ASC Review

104 HEALTHCARE NEWS Tenet's net income more than triples in Q2 By Ayla Ellison T enet Healthcare's revenues declined year over year in the second quarter of 2020, but federal grants made available to help offset lost revenues and expenses tied to the COVID-19 pandemic helped push the Dallas-based company's net income higher. Tenet reported revenues of $3.6 billion in the second quarter of this year, down from $4.6 billion in the same period a year ear- lier. Revenues from the company's hospital operations segment were down 19.3 percent year over year. e decline was attributed to lower patient volumes as a result of the COVID-19 pandemic. Revenues from Te- net's ambulatory care segment declined 29.8 percent year over year. e company said revenues from Conifer, its revenue cycle subsidiary, decreased in the second quarter of this year due to the impact of volume declines of its clients and hospital divestitures by both Tenet and other clients. Conifer's adjusted EBITDA was down 29.1 percent year over year in the second quarter of 2020. Aer factoring in expenses and one-time costs, Tenet reported net income available to shareholders of $88 million in the second quarter of this year, compared to net income of $26 million in the same period a year ear- lier. e company's net income in the second quarter of this year included $523 million in federal grants made available under the Coronavirus Aid, Relief and Economic Security Act. Tenet Executive Chair and CEO Ronald A. Rittenmeyer said the second quarter "was a challenge by any measure." He said CARES Act funds helped minimize financial damage from the pandemic as caregivers at its facili- ties continue to treat COVID-19 patients. "Today, we and our brave front-line caregiv- ers continue to face an even larger surge of COVID-19 cases in several markets, but we have a much better sense of how to deal with these in a more effective manner," Mr. Rit- tenmeyer said in an earnings release. "While there is a greater negative financial impact associated with COVID-19 cases, we believe the CARES Act provided reasonable, but not complete relief from the impact of the shut- down and will help with the remaining cases with which we are now engaged." Looking at results for the first half of 2020, Tenet reported net income of $181 million on revenues of $8.2 billion. e company report- ed net income of $14 million on revenues of $9.1 billion in the same period a year earlier. Other major for-profit hospital operators, including Nashville, Tenn.-based HCA Healthcare and King of Prussia, Pa.-based Universal Health Services, also posted higher net income in the second quarter of this year than in the same period a year earlier. n Texas hospital exits $20M Cerner EHR contract By Jackie Drees N acogdoches (Texas) Memorial Hospital terminated a $20 million contract with Cerner in late July, opt- ing to remain using its current Cerner EHR rather than transitioning to the vendor's Community Works platform. The hospital had delayed finishing the new Cerner EHR system several times, over the past few years, according to a July 29 Daily Sentinel report. While Nacogdoches Me- morial will not move forward with the new EHR system, it will continue using its Soarian EHR, which Cerner acquired as part of its Siemens Health Services acquisition in 2015. Nacogdoches accrued about $20 million in debt from the Community Works contract, which it settled for a $1.01 million termination fee and paid an additional $2.07 mil- lion, according to the report. In a July 30 memo emailed to Becker's, the hospital's IT director Norman Moore said: "The termination of the Cerner Community Works project was a tough decision for all parties involved. Cerner worked with us and al- lowed us out of the contract because of our great working relationship and we all felt it was best for our hospital at this time." Nacogdoches Memorial had entered the Cerner Commu- nity Works before the hospital's previous CEO Scott Street resigned in 2017, according to KTRE news. "Nacogdoches Memorial Hospital remains a valued client and partner," a Cerner spokesperson said in an emailed statement to Becker's. "We look forward to con- tinuing to work with them. While the hospital and Cerner reached an agreement to end one part of their contract, the hospital will continue to use Cerner solutions across their health system." n Today, we and our brave front-line caregivers continue to face an even larger surge of COVID-19 cases in several markets, but we have a much better sense of how to deal with these in a more effective manner.

• Cover