Issue link: https://beckershealthcare.uberflip.com/i/831159
15 CFO / FINANCE Tenet Sees Net Loss Narrow to $53M, Inks Deal to Sell 3 Hospitals to HCA By Ayla Ellison D allas-based Tenet Healthcare said May 1 it ended the first quarter with a net loss. However, the com- pany said it has entered into several agreements to improve its financial picture in the long term. Tenet recorded revenues of $4.8 billion in the first quarter of 2017, a 4.6 percent year-over-year decrease. The compa- ny's ambulatory care segment and revenue cycle manage- ment subsidiary had strong performance in the first quarter, but revenue from its hospital operations was down. Tenet said the decrease in revenue was attributable, in part, to the sale of its hospitals in Atlanta in April 2016 and not being able to record revenue under the California Provider Fee Program, since extension of the program hasn't been ap- proved by CMS. Tenet ended the first quarter with a net loss of $53 million, which was an improvement from the $59 million net loss it recorded in the same period of the year prior. The company expects its financial performance to improve further due to several strategic agreements it recently entered. On May 1, Tenet announced it signed a definitive agree- ment to sell its three hospitals in Houston to Nashville, Tenn.-based HCA Holdings for about $725 million. The transaction, which is subject to regulatory approval, is ex- pected to close in the third quarter of this year. Tenet is also accelerating the purchase of ambulatory sur- gery center chain United Surgical Partners International. Tenet said its ownership interest in USPI would increase to 80 percent by July 3. In addition to the hospital and ASC transactions, Tenet also announced it reached a new, multiyear agreement with Louisville, Ky.-based insurer Humana that calls for all of Tenet's hospitals, hospital-affiliated outpatient centers and employed physicians to be phased back into the insurer's network between June 1, 2017, and Oct. 1, 2017. Tenet Chairman and CEO Trevor Fetter said the transac- tions and the new agreement with Humana "are part of a strategic effort to reduce complexity across the enterprise and enhance returns for our shareholders." In January, Mr. Fetter said Tenet's long-term strategy is to increase the per- centage of markets where the company has the leading or second-place market share. n 9 Healthcare Bankruptcies So Far in 2017 By Ayla Ellison F rom reimbursement landscape challenges to dwindling patient volumes, many factors lead hospitals and other healthcare orga- nizations to file for bankruptcy. Here are nine healthcare organizations that have filed for bankruptcy since Jan. 1, beginning with the most recent. 1. York, Pa.-based medical device company Unilife Corp., which develops and markets injectable drug delivery systems, filed for Chapter 11 bankruptcy in early April. "We have conducted an extensive review of alternatives to address Unilife's capital struc- ture, and we believe pursuing a balance sheet restructuring or sale through Chapter 11 is the best path forward at this time," said John Ryan, CEO of Unilife. 2. Green Valley (Ariz.) Hospital filed for Chapter 11 bankrupt- cy April 3. In its bankruptcy documents the hospital says it was "poorly managed" and "undercapitalized" since it opened about two years ago. 3. Naperville, Ill.-based Vital Wellness Home Health, which provides home health and private duty services in the Chicago, Phoenix and Denver areas, filed for Chapter 11 bankruptcy March 2. In its bank- ruptcy petition the company listed its liabilities as $2.3 million, and the total value of its assets as about $1 million. 4. California Proton Treatment Center, the San Diego-based invest- ment group that owns Scripps Proton erapy Center, filed for Chap- ter 11 bankruptcy March 1. According to documents filed with the court, the proton therapy center "has not operated on a profitable or even a break-even basis" since it opened in February 2014. 5. Humble (Texas) Surgical Hospital filed for Chapter 11 bankruptcy Feb. 24. e hospital filed its bankruptcy petition aer a judge ordered it to pay Hartford, Conn.-based Aetna $51.4 million in a seven-year- old court battle over the hospital's out-of-network charges. 6. Louisiana Heart Hospital in Lacombe filed for Chapter 11 bank- ruptcy Jan. 30. e hospital shut down Feb. 10 and closed its 16 med- ical clinics Feb. 28. 7. Aventura, Fla.-based Advanced Neuro Spine Institute, a medical group specializing in neurology, neurosurgery and pain management, filed for Chapter 11 bankruptcy Jan. 25. 8. North Texas Medical Center in Gainesville, which is owned by the Gainesville Hospital District, filed for Chapter 9 bankruptcy Jan. 17. With the hope of regaining its financial footing, the hospital's board approved a partnership with King of Prussia, Pa.-based Universal Health Services in December. 9. e public trust that operates Atoka (Okla.) County Medical Center filed for Chapter 9 bankruptcy Jan. 10. At that time, the critical access hospital was about $16 million in debt. n