Tenet Healthcare Corp., a Dallas-based health care services company, today reported a 50% rise in adjusted earnings before interest, taxes, depreciation and amortization to $240 million for all its hospitals in the third quarter, compared with $160 million a year ago.
Tenet reported a net loss of $3 million for the third quarter ended Sept. 30, compared with net income of $104 million during the same period a year ago. Operating income increased 90% to $133 million, compared with $70 million last year.
The company reported same-hospital bad debt ratio of 8.5% of net revenues, an increase of 110 basis points from 7.4% in the previous quarter, and an increase of 90 basis points from 7.6% in the third quarter of last year. A basis point is one-hundredth of a percentage point.
"Our strategies drove a significant enhancement in earnings through the first three quarters of 2009, making this the second consecutive quarter in which we've generated year-over-year Adjusted EBITDA growth of 50% or better," Trevor Fetter, Tenet's president and CEO, said of the company's third-quarter performance.
"Strong revenue growth, excellent cost control and robust growth in our outpatient business were more than sufficient to offset an adverse shift in payer mix," Fetter said.