Becker's Hospital Review

9 CFO / FINANCE Tenet profit slips in Q3: 6 details By Andrew Cass D allas-based Tenet Healthcare reported a net income of $131 million in the third quarter of 2022, down from $448 million over the same period last year, according to its financial report released Oct. 20. Six details: 1. During the third quarter ending Sept. 30, the for-profit hospital system saw a net operating revenue of $4.8 billion, down from $4.9 billion recorded in the same period last year. 2. e 60-hospital system ended the third quarter of 2022 with an operating income of $596 million, down from $1 billion over the same period in 2021. 3. Tenet announced that its board of directors has authorized a $1 billion share repurchase program that expires Dec. 31, 2024. 4. "During the third quarter, we worked to continue to recover from our cyber attack and dealt with a very active COVID spike among our employees, but the operating discipline across our business units al- lowed us to adapt to the environment and drive strong results," Tenet CEO Saum Sutaria, MD, said in the report. "Our business continues to generate strong free cash flow, enabling us to authorize a share re- purchase program that balances our uses of capital with investments to grow the business and debt retirement." 5. Tenet received $1.5 billion of Medicare advance payments from CMS in 2020 related to the pandemic. e health system has repaid the advance as of Sept. 30. Tenet paid back the remaining $880 million aer repaying $616 million last year. 6. For the nine months ending Sept. 30, Tenet recorded a net income of $308 million on revenues of $14.2 billion. In the same period in 2021, Tenet reported a net income of $665 million on revenues of $14.6 billion. n 7-hospital system files for bankruptcy By Ayla Ellison P ipeline Health System, which includes seven hospitals in three states, filed for Chapter 11 bankruptcy Oct. 2. El Segundo, Calif.-based Pipeline said the decision to enter bankruptcy was prompted by several factors, in- cluding financial challenges tied to skyrocketing costs and delayed payments from insurance plans. "We intend for the restructuring process to allow our hospitals to remain open and operating in their com- munities, while putting the hospital system in a more secure and sustainable financial position going for- ward," Pipeline CEO Andrei Soran said in an Oct. 3 news release. During the bankruptcy process, the company said it will try to complete the planned sale of two Illinois hospitals to Resilience Healthcare. The Illinois State Health Facilities and Services Review Board voted in June to allow Pipeline to sell Weiss Memorial Hospi- tal in Chicago and West Suburban Medical Center in Oak Park, Ill. Pipeline said it will attempt to find a new buyer for the hospitals if Resilience is unable to close the sale. Pipeline acquired Weiss Memorial Hospital, West Suburban Medical Center and Westlake Hospital in Melrose Park, Ill., from Dallas-based Tenet Healthcare in January 2019. Pipeline closed Westlake Hospital later that year. Outside of Illinois, Pipeline operates a hospital in Dal- las and four hospitals in the Los Angeles area. n HCA revenues, net income slip in Q3: 5 details By Andrew Cass N ashville, Tenn.-based HCA Healthcare saw revenues of $14.97 billion in the third quarter of 2022, down from $15.28 billion over the same period last year, according to its financial report released Oct. 21. Five details: 1. The 182-hospital, for-profit system saw a net income of $1.13 billion in the quarter ended Sept. 30, down from $2.27 billion over the same period last year. 2. The third-quarter results include Hurricane Ian's impact, primarily at the system's Florida facilities, causing addi- tional expenses and lost revenues estimated at $35 mil- lion, according to the report. That amount is before any potential insurance recoveries. 3. "Despite a difficult comparison to the prior year due to the COVID-19 delta variant, we are pleased with our results and the execution of our teams in a challenging operating environment, which included tremendous efforts from our courageous front-line caregivers and support teams who worked tirelessly to provide uninterrupted care during Hurricane Ian," HCA CEO Sam Hazen said in the report. 4. For the nine months ended Sept. 30, HCA's net income was $3.56 billion on $44.74 billion in revenues. That is compared to a net income of $5.14 billion on $43.69 bil- lion in revenues over the same period last year. 5. Results for the first nine months of 2022 included losses of $25 million on the sales of facilities. Results for the first nine months of 2021 included gains on facility sales of $1.1 billion. n

• Cover