Tenet Healthcare has reported strong financial performance in the third quarter of 2024, with an increase in revenue and profitability.
The company's net operating revenues reached $5.12 billion, a 1.2% rise from the same period last year. This growth can be attributed to improved pricing yield, a favorable payer mix, and a focus on higher acuity services.
The adjusted EBITDA for the quarter was $978 million, a 14.5% increase year-over-year. The hospital segment saw a rise in net patient service per adjusted admission, driven by strong same-hospital admissions growth and increased revenue per adjusted admission. The hospital segment's adjusted EBITDA was $539 million, up from $484 million in the third quarter of 2023.
Tenet's ambulatory business segment, including operations from United Surgical Partners International (USPI), also contributed significantly to the company's financial success. The segment's net operating revenues reached $1.14 billion, a 21% increase from the previous year. This growth was driven by strong net revenue per case growth, acquisitions of new facilities, and the expansion of service lines.
The surgical business reported an increase in same-facility system-wide net patient service revenues, with cases up by 1% and net revenue per case rising by 7.6%. The ambulatory segment's adjusted EBITDA increased by 18.6% compared to the same quarter last year.
Tenet Healthcare's recent financial results have been supported by strategic divestitures, with a net profit of $472 million in the third quarter. The company has raised its full-year 2024 guidance, projecting revenues between $20.6 billion and $20.8 billion, alongside an adjusted EBITDA forecast of $3.9 billion to $4 billion.
Tenet Healthcare plans to prioritize capital investments to support growth in its ambulatory surgical business and key hospital growth opportunities. The company aims to focus on higher acuity service offerings to drive future profitability. Tenet operates 48 acute care hospitals, 26 off-campus emergency departments, and 50 imaging centers, positioning itself for growth in the healthcare sector.