Dive Brief:
- Tenet Healthcare reports a huge Q4 to end their best annual earnings in a decade, according to a company press release. The company reported earnings of $646 million in Q4 2014, compared to $444 million in 2013's fourth quarter.
- The 2014 Q4 results saw net income up at $61 million, as opposed to 2013, which showed a $24-million loss. The company charted net operating revenue of $4.5 billion for the quarter, up from $3.9 billion in 2013.
- The Dallas-based hospital chain credited increasing patient volumes, improving terms in managed care contracts and growth in its Conifer Health Solutions business for its rosy performance in the quarter.
Dive Insight:
"Another quarter of robust earnings growth across our entire business capped off Tenet's strongest year in a decade," said Trevor Fetter, president and chief executive officer, in the company release. "Our strategies to capture incremental market share, combined with an improving economy and expanded health coverage, generated admissions growth that was among the highest in the industry. Conifer also achieved record growth and continues to gain recognition as a leading provider of revenue cycle management and value-based care services."
The release called Tenet's increased revenue a result of "organic" growth, which is probably the most telling element of the hospital giant's story this quarter.
Looking more closely at the numbers, same-hospital admissions were up 4% at Tenet facilities and adjusted admissions were up 4.5%, compared to Q4 2013, and outpatient visits increased by 9.6%, as well. In an era that is being marked by massive M&A deals, huge IT investments and game-changing policy decisions, Tenet is moving the needle on earnings the old-fashioned way—by treating more patients than they did the year before.
That's not to say that Tenet isn't acquisition-minded. It had been in talks with the Connecticut officials about taking over four state-run hospitals, but they wound up backing out after those discussions proved fruitless. From the numbers they're posting, perhaps that was the right call.