The leaders of Tenet Healthcare Corp. anticipate that the robust demand from sufferers for healthcare providers will persist nicely into subsequent 12 months.
Dallas-based Tenet put up robust development within the third quarter in each of its working divisions. Similar-store admissions on the firm’s hospitals rose 5.2 p.c from the third quarter of 2023 whereas its USPI surgical procedure heart group grew its case depend 1.0 p.c and its revenues almost 9 p.c at services it has owned for greater than a 12 months. That development mixed with labor price controls helped the corporate greater than double its internet revenue for the quarter to $681 million and allowed Chairman and CEO Saum Sutaria and his workforce elevate their 2024 earnings steerage.
Chatting with analysts on a convention name, Sutaria mentioned Tenet executives see nothing out there right now to make them suppose the strong demand for the corporate’s providers will fall off within the coming months.
“We’re not planning in another way for the primary quarter subsequent 12 months versus the final quarter of this 12 months,” he mentioned. “We’re not seeing indicators or alerts that we must always cease trying so as to add capability selectively in markets the place that demand may very well be serviced in an applicable price construction.”
Some latest examples of such capability investments embody the opening of six surgical procedure facilities final quarter and almost 20 others which might be within the works. On the hospital aspect, Tenet in July opened a facility close to San Antonio and is on observe to finish a hospital in Port St. Lucie, Florida, subsequent 12 months. On the flip aspect, the corporate on Sept. 30 accomplished the sale of its 70 p.c stake in Alabama’s Brookwood Baptist Well being system to Orlando Well being.
Shares of Tenet (Ticker: THC) jumped almost 17 p.c on the corporate’s earnings report and convention name commentary. They’ve now greater than doubled this 12 months, rising Tenet’s market capitalization to about $15.6 billion.
