The leaders of Tenet Healthcare Corp. count on that the sturdy demand from sufferers for healthcare companies will persist properly into subsequent yr.
Dallas-based Tenet put up sturdy progress within the third quarter in each of its working divisions. Similar-store admissions on the firm’s hospitals rose 5.2 p.c from the third quarter of 2023 whereas its USPI surgical procedure middle group grew its case depend 1.0 p.c and its revenues practically 9 p.c at services it has owned for greater than a yr. That progress mixed with labor price controls helped the corporate greater than double its web revenue for the quarter to $681 million and allowed Chairman and CEO Saum Sutaria and his crew increase their 2024 earnings steerage.
Talking to analysts on a convention name, Sutaria mentioned Tenet executives see nothing out there right this moment to make them suppose the strong demand for the corporate’s companies will fall off within the coming months.
“We’re not planning in another way for the primary quarter subsequent yr versus the final quarter of this yr,” he mentioned. “We’re not seeing indicators or alerts that we must always cease trying so as to add capability selectively in markets the place that demand might be serviced in an acceptable price construction.”
Some latest examples of such capability investments embody the opening of six surgical procedure facilities final quarter and practically 20 others which might be within the works. On the hospital facet, Tenet in July opened a facility close to San Antonio and is on observe to finish a hospital in Port St. Lucie, Florida, subsequent yr. On the flip facet, the corporate on Sept. 30 accomplished the sale of its 70 p.c stake in Alabama’s Brookwood Baptist Well being system to Orlando Well being.
Shares of Tenet (Ticker: THC) jumped practically 17 p.c on the corporate’s earnings report and convention name commentary. They’ve now greater than doubled this yr, rising Tenet’s market capitalization to about $15.6 billion.
