Dive Brief:
- Tenet Healthcare Corp.'s net income fell 30% for Q3 of this year, from $40 million to $28 million, due to soft admissions numbers plus one-time nonrecurring expenses.
- Operating expenses grew slightly year-over-year, and operating income fell slightly, but net revenue increased more than 8.4% to $2.4 billion.
- On a brighter note, Tenet's revenue cycle management company, Conifer Health Solutions, reported a 50% increase in EBITDA.
Dive Insight:
Tenet may not have had the greatest quarter ever, but it's much better than the high losses it posted in the first and second quarter of this year. Now, it seems positioned for big things with its October acquisition of Vanguard Health Systems. With Vanguard and Tenet working together to achieve efficiencies, the two expect to see stronger performance going forward. Consolidation of this kind offers no guarantees, but it could offer the chance for a fresh start. Let's see how they play it.