Tenet Healthcare has reported a net income from continuing operations available to its common shareholders of $2.15bn for the first quarter (Q1) of 2024, a substantial increase from $143m in Q1 2023.  

The for-profit healthcare company’s net income per diluted share was $21.38 in Q1 2024, up from $1.32 in the same period last year.  

This growth includes an after-tax gain of $1.85bn, or $18.45 per diluted share, stemming from hospital divestitures announced earlier. 

During the quarter ending 31 March 2024, the company generated net operating revenues of $5.36bn, 6.9% higher than the $5.02bn recorded in the prior year. 

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased to $1.02bn from $832m over this period.  

This increase was attributed to strong same-hospital admission growth, improved contract labour costs, and a favourable payer mix, although partially offset by higher medical fees. 

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Tenet’s Ambulatory segment saw net operating revenues grow 9.9% to $995m in Q1 2024 from $905m in Q1 2023, driven by net revenue per case growth, acquisitions, the opening of de novo facilities, and expanded service lines.  

The segment’s adjusted EBITDA rose to $394m from $340m. 

The hospital segment reported net operating revenues of $4.37bn in the first three months of 2024, a 6.2% increase from $4.11bn in Q1 2023.  

Adjusted EBITDA for the hospital segment increased to $630m from $492m. 

The group’s cash flows from operating activities in the January-March 2024 quarter were $586m, while free cash flow was $346m.  

In Q1 2024, Tenet repurchased 2,811,234 shares of common stock for $278m.  

For the full year 2024, Tenet projects net operating revenues between $20bn and $20.4bn, with $4.9-5.1bn expected in Q2 2024.  

It forecasts net income from continuing operations available to common stockholders between $2.62bn and $2.76bn in 2024, and $150-195m in Q2 2024. 

Tenet CEO and chairman Saum Sutaria said: “Our operational excellence and focus on continuous improvement helped enable our momentum as we transform our company through strategic portfolio decisions, disciplined capital allocation, and debt reduction.” 

On 1 April, Tenet concluded the sale of its six hospitals in California to UCI and Adventist.