Tenet Healthcare Corporation (THC), a hospital operator, is not having a good day.
Shares of the company are down over 10% to $4.98 a share. The sell off comes amid today’s bear rally and lower-than-expected Q4 earnings. Tenet also said its 2010 outlook will be disappointing, adding fuel to the fire.
Reuters: Total admissions fell 0.9 per cent for Tenet hospitals operating at least a year. But admissions from government payors increased 0.8 per cent and admissions for patients covered by Medicaid increased 3.7 per cent.
The number of admissions and outpatient visits of commercially insured patients — a more lucrative source of revenue — fell 5.3 per cent and 3.9 per cent, respectively.
Still, Tenet is at least turning itself around. It posted a fourth-quarter loss of $33 million a year earlier and has now turned a profit of $21 million. Revenue rose 4% to $2.26 billion.