Tenet Healthcare Corp. (THC, Financial) filed Quarterly Report for the period ended 2012-06-30.
Tenet Healthcare Corporation has a market cap of $1.94 billion; its shares were traded at around $4.64 with a P/E ratio of 13 and P/S ratio of 0.2. Tenet Healthcare Corporation had an annual average earning growth of 12.1% over the past 5 years.
Net operating revenues increased by $133 million, or 6.2%, in the three months ended June 30, 2012 compared to the same period in 2011. Net operating revenues in the three months ended June 30, 2012 included $109 million of Medicaid disproportionate share hospital (DSH) and other state-funded subsidy revenues compared to $28 million in the same period in 2011. The 2012 amount included $59 million of revenues related to the California and North Carolina provider fee programs. Revenues from the Georgia DSH program were $14 million during the three months ended June 30, 2012 compared to $3 million in the 2011 period due to the timing of the approval of that program. DSH and other state-funded subsidy revenues in the three months ended June 30, 2011 also included a $10 million unfavorable adjustment due to a regulation issued by the State of Missouri.
Our estimated costs (based on selected operating expenses, which include salaries, wages and benefits, supplies and other operating expenses) of caring for our self-pay patients for the three months ended June 30, 2012 and 2011 were approximately $114 million and $94 million, respectively, and for the six months ended June 30, 2012 and 2011 were approximately $222 million and $188 million, respectively. We also provide charity care to patients who are financially unable to pay for the health care services they receive. Most patients who qualify for charity care are charged a per-diem amount for services received, subject to a cap. Except for the per-diem amounts, our policy is not to pursue collection of amounts determined to qualify as charity care; therefore, we do not report these amounts in net operating revenues. Most states include an estimate of the cost of charity care in the determination of a hospitals eligibility for Medicaid DSH payments. Revenues attributable to DSH payments and other state-funded subsidy payments for the three months ended June 30, 2012 and 2011 were approximately $109 million and $28 million, respectively, and for the six months ended June 30, 2012 and 2011 were approximately $154 million and $156 million, respectively. These payments are intended to mitigate our cost of uncompensated care, as well as reduced Medicaid funding levels. Our estimated costs (based on the selected operating expenses described above) of caring for charity care patients for the three months ended June 30, 2012 and 2011 were approximately $32 million and $31 million, respectively, and for the six months ended June 30, 2012 and 2011 were approximately $64 million and $59 million, respectively. Our method of measuring the estimated costs uses adjusted self-pay/charity patient days multiplied by selected operating expenses per adjusted patient day. The adjusted self-pay/charity patient days represents actual self-pay/charity patient days adjusted to include self-pay/charity outpatient services by multiplying actual self-pay/charity patient days by the sum of gross self-pay/charity inpatient revenues and gross self-pay/charity outpatient revenues and dividing the results by gross self-pay/charity inpatient revenues.
Net operating revenues from our other operations were $103 million and $70 million in the three months ended June 30, 2012 and 2011, respectively, and $197 million and $135 million in the six months ended June 30, 2012 and 2011, respectively. The increase in net operating revenues from other operations during 2012 primarily relates to our additional owned physician practices. Equity earnings for unconsolidated affiliates included in our net operating revenues from other operations were $1 million for both the three months ended June 30, 2012 and 2011, and $3 million and $2 million the six months ended June 30, 2012 and 2011, respectively.
(1) Net inpatient revenues and net outpatient revenues are components of net operating revenues. Net inpatient revenues include self-pay revenues of $65 million and $62 million for the three months ended June 30, 2012 and 2011, respectively, and $129 million and $131 million for the six months ended June 30, 2012 and 2011, respectively. Net outpatient revenues include self-pay revenues of $90 million and $84 million for the three months ended June 30, 2012 and 2011, respectively, and $178 million and $162 million for the six months ended June 30, 2012 and 2011, respectively.
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Tenet Healthcare Corporation has a market cap of $1.94 billion; its shares were traded at around $4.64 with a P/E ratio of 13 and P/S ratio of 0.2. Tenet Healthcare Corporation had an annual average earning growth of 12.1% over the past 5 years.
Highlight of Business Operations:
Our self-pay collection rate, which is the blended collection rate for uninsured and balance after insurance accounts receivable, was approximately 28.5% and 27.7% as of June 30, 2012 and December 31, 2011, respectively. These self-pay collection rates include payments made by patients, including co-payments and deductibles paid by patients with insurance, prior to an account being assigned to our Conifer Health Solutions (Conifer) revenue cycle management services subsidiary. Our estimated collection rate from managed care payers was approximately 98.4% and 98.2% at June 30, 2012 and December 31, 2011, respectively, which includes collections from point-of-service through collections by our Conifer subsidiary. As of June 30, 2012 and December 31, 2011, our allowance for doubtful accounts for self-pay uninsured was 87.7% and 88.4%, respectively, of our self-pay uninsured patient accounts receivable. As of June 30, 2012 and December 31, 2011, our allowance for doubtful accounts for self-pay balance after insurance was 57.7% and 57.5%, respectively, of our self-pay balance after insurance patient accounts receivable, consisting primarily of co-pays and deductibles owed by patients with insurance. Our self-pay write-offs, including uninsured and balance after insurance accounts, increased approximately $4 million from $180 million in the six months ended June 30, 2011 to $184 million in the six months ended June 30, 2012 primarily due to an increase in patient account assignments to our Conifer subsidiary. This increase was not a result of negative trends experienced in the collection of amounts from self-pay patients, but was the result of an increase in revenues from the uninsured. As ofNet operating revenues increased by $133 million, or 6.2%, in the three months ended June 30, 2012 compared to the same period in 2011. Net operating revenues in the three months ended June 30, 2012 included $109 million of Medicaid disproportionate share hospital (DSH) and other state-funded subsidy revenues compared to $28 million in the same period in 2011. The 2012 amount included $59 million of revenues related to the California and North Carolina provider fee programs. Revenues from the Georgia DSH program were $14 million during the three months ended June 30, 2012 compared to $3 million in the 2011 period due to the timing of the approval of that program. DSH and other state-funded subsidy revenues in the three months ended June 30, 2011 also included a $10 million unfavorable adjustment due to a regulation issued by the State of Missouri.
Our estimated costs (based on selected operating expenses, which include salaries, wages and benefits, supplies and other operating expenses) of caring for our self-pay patients for the three months ended June 30, 2012 and 2011 were approximately $114 million and $94 million, respectively, and for the six months ended June 30, 2012 and 2011 were approximately $222 million and $188 million, respectively. We also provide charity care to patients who are financially unable to pay for the health care services they receive. Most patients who qualify for charity care are charged a per-diem amount for services received, subject to a cap. Except for the per-diem amounts, our policy is not to pursue collection of amounts determined to qualify as charity care; therefore, we do not report these amounts in net operating revenues. Most states include an estimate of the cost of charity care in the determination of a hospitals eligibility for Medicaid DSH payments. Revenues attributable to DSH payments and other state-funded subsidy payments for the three months ended June 30, 2012 and 2011 were approximately $109 million and $28 million, respectively, and for the six months ended June 30, 2012 and 2011 were approximately $154 million and $156 million, respectively. These payments are intended to mitigate our cost of uncompensated care, as well as reduced Medicaid funding levels. Our estimated costs (based on the selected operating expenses described above) of caring for charity care patients for the three months ended June 30, 2012 and 2011 were approximately $32 million and $31 million, respectively, and for the six months ended June 30, 2012 and 2011 were approximately $64 million and $59 million, respectively. Our method of measuring the estimated costs uses adjusted self-pay/charity patient days multiplied by selected operating expenses per adjusted patient day. The adjusted self-pay/charity patient days represents actual self-pay/charity patient days adjusted to include self-pay/charity outpatient services by multiplying actual self-pay/charity patient days by the sum of gross self-pay/charity inpatient revenues and gross self-pay/charity outpatient revenues and dividing the results by gross self-pay/charity inpatient revenues.
Net operating revenues from our other operations were $103 million and $70 million in the three months ended June 30, 2012 and 2011, respectively, and $197 million and $135 million in the six months ended June 30, 2012 and 2011, respectively. The increase in net operating revenues from other operations during 2012 primarily relates to our additional owned physician practices. Equity earnings for unconsolidated affiliates included in our net operating revenues from other operations were $1 million for both the three months ended June 30, 2012 and 2011, and $3 million and $2 million the six months ended June 30, 2012 and 2011, respectively.
(1) Net inpatient revenues and net outpatient revenues are components of net operating revenues. Net inpatient revenues include self-pay revenues of $65 million and $62 million for the three months ended June 30, 2012 and 2011, respectively, and $129 million and $131 million for the six months ended June 30, 2012 and 2011, respectively. Net outpatient revenues include self-pay revenues of $90 million and $84 million for the three months ended June 30, 2012 and 2011, respectively, and $178 million and $162 million for the six months ended June 30, 2012 and 2011, respectively.
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