Dive Brief:
- Tenet Healthcare Corp. posted a net loss of $24 million in the fourth quarter of fiscal year 2013, compared with a $49 million profit last year.
- The losses spring in part from Tenet's acquisition of Nashville, Tenn.-based Vanguard Health Systems for $1.8 billion in cash, as well as assuming $2.5 billion of Vanguard's debt.
- Despite the net loss, Tenet's net revenue grew rapidly in the fourth quarter by adding on Vanguard's hospitals. Revenue shot up from $2.33 billion in 2012 to $3.89 billion this year.
- For all of the fiscal year 2013, Tenet's net losses totaled $134 million, compared with a $141 million profit in fiscal year 2012.
Dive Insight:
While on the surface it looks like Tenet is in something of a hole, I think it's possible that the Vanguard acquisition made sense, despite it driving down profits temporarily. Let's see if Tenet and Vanguard can integrate quickly and well enough to make this year a better one for both parties.