Becker's Hospital Review

9 FINANCE Tenet Q2 Profits Take $61M Hit, Yet Per-Share Earnings Top Estimates By Emily Rappleye D allas-based Tenet Health- care reported a net loss of $61 million, or 61 cents a share, for the second quarter aer it was docked $136 million in af- ter-tax impairments, restructuring charges, acquisition-related costs and litigation and investigation costs. is loss has widened com- pared to the Q2 net loss in 2014 of $26 million, or 27 cents per share. Over the past six months, the com- pany's net operating loss totaled $14 million. Excluding the one-time charges and costs, per-share earnings from continuing operations exceeded expectations in Q2, rising from 17 cents in the prior quarter to 75 cents. Tenet had forecasted an increase of 15 cents to 64 cents. Revenue was up 11.2 percent in the three-month period end- ing June 30, to $4.49 billion. is tops last year's Q2 revenue of $4.04 billion. Year-to-date, Tenet has brought in $8.9 billion in net operating revenue, a 12 percent increase from last year's earnings at this time. e majority of this growth stems from an increase in same-hospital adjusted patient ad- missions, which are up 2.3 percent compared to the second quarter 2014. e company also saw some changes due to health insurance coverage under the Affordable Care Act. Including non-expansion states, same-hospital uninsured plus charity admissions decreased by 4.9 percent. In the six states that expanded Medicaid, same-hospital uninsured plus charity admissions declined by 31.5 percent. Adjusted EBITDA spiked to $568 million in the second quarter, a 23.5 percent increase from the $460 million in the same period in 2014. is is due in part to the $16 million of adjusted EBITDA from the health system's acquisition of United Surgical Partners Inter- national and Aspen Healthcare, which closed in June. In the third quarter, Tenet is expecting $4.65 billion to $4.85 billion in net operating revenue, and forecasts it will generate $18.1 billion to $18.5 billion in net oper- ating revenue for the entire fiscal year. Its adjusted per-share earn- ings estimate for the year ranges from $1.32 to $2.21. n K ing of Prussia, Pa.-based Universal Health Services raised its earnings guidance for 2015 after reporting strong financial and operating results for the second quarter of fiscal year 2015. UHS reported net revenues of $2.28 billion for the second quarter of FY 2015, up 10.9 per- cent from revenues of $2.05 billion in the same period of last year. Net income attributable to UHS totaled $182.2 million for the second quar- ter of this year, up from $151.7 million for the same period of 2014. When adjusted for outpatient activity, ad- missions at UHS' facilities increased 5.7 per- cent during the second quarter of FY 2015 as compared to the same period of last year. Net revenue per adjusted admission increased 3.2 percent during the second quarter of this year as compared to the same period of 2014. Based on its operating trends and finan- cial results during the first half of 2015, UHS increased it estimated range of adjusted net income to $6.75 to $7.15 per diluted share for the full year. n UHS Net Income Grows on Higher Admissions By Ayla Ellison

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