Tenet: 2005 Operating Results Fall Short

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Tenet Healthcare Corp. said Monday that fourth-quarter charges could exceed $1 billion and it doesn’t expect 2005 operating results to exceed breakeven, as the hospital chain struggles with fewer patients and increased bad debt.


Tenet had a third-quarter net loss of $70 million, or 15 cents a share, and a loss from continuing operations of $52 million, or 11 cents a share.


Analysts had expected a profit in 2005 of 8 cents a share, excluding one-time items, from an expected loss in 2004 of 20 cents per share, according to estimates.


The company, which is the target of civil and criminal investigations and has posted net losses for seven straight quarters, has been reducing costs by selling hospitals. Since September, Tenet has sold or agreed to sell at least nine hospitals in Southern California.


Tenet will be launching a number of cost-reduction initiatives in January to be phased in throughout 2005 due to increased spending on labor and supplies.


The company expects to have about $1.3 billion in cash on hand as of Dec. 31, as it did Sept. 30, according to Monday’s statement.

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