The leaders of Tenet Healthcare Corp. anticipate that the robust demand from sufferers for healthcare companies will persist nicely into subsequent 12 months.
Dallas-based Tenet put up robust progress within the third quarter in each of its working divisions. Identical-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 rely 1.0 p.c and its revenues practically 9 p.c at services it has owned for greater than a 12 months. That progress 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 group elevate their 2024 earnings steering.
Chatting with analysts on a convention name, Sutaria stated Tenet executives see nothing out there at this time to make them suppose the strong demand for the corporate’s companies will fall off within the coming months.
“We’re not planning in a different way for the primary quarter subsequent 12 months versus the final quarter of this 12 months,” he stated. “We’re not seeing indicators or indicators that we should always cease trying so as to add capability selectively in markets the place that demand could possibly be serviced in an acceptable price construction.”
Some latest examples of such capability investments embody the opening of six surgical procedure facilities final quarter and practically 20 others which can be within the works. On the hospital facet, Tenet in July opened a facility close to San Antonio and is on monitor to finish a hospital in Port St. Lucie, Florida, subsequent 12 months. On the flip facet, 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 practically 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.
