Tenet Healthcare takes 4Q loss as debt grows

NEW YORK (AP) -- Hospital operator Tenet Healthcare said Monday it took a loss in the fourth quarter as it took on more debt because of an acquisition and a stock repurchase.

During the quarter Tenet closed its purchase of Vanguard Health Systems and it took on $400 million in debt to finance stock repurchases. Tenet agreed to pay $1.8 billion for Vanguard, and the companies valued the acquisition at $4.3 billion including debt. The Dallas company said its pretax interest costs grew $73 million because of the additional debt.

Tenet reported a loss of $24 million, or 24 cents per share, for the quarter ended in December. A year earlier the company turned a profit of $49 million, or 45 cents per share. Its revenue rose 67 percent, to $3.89 billion from $2.33 billion.

FactSet says analysts expected adjusted income of 33 cents per share and $3.85 billion in revenue.

At hospitals that have been open and owned by Tenet for at least a year, revenue grew 6 percent and revenue per adjusted admission improved. However adjusted admission at those hospitals fell 0.5 percent.

Tenet now runs 77 hospitals, 186 outpatient centers, and Conifer Health Solutions, which offers business process services to health care providers.

Earlier Monday the company said it extending and expanding a deal with health insurer Aetna Inc. Tenet said its hospitals will accept Aetna and Coventry commercial and Medicare Advantage insurance, and Tenet's hospitals will participate in plans offered by Aetna and Coventry on health care exchanges in seven markets.

Tenet didn't disclose terms of the new deal.

Looking ahead, the company forecast adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, of $1.8 billion to $1.9 billion, this year, up from $1.34 billion in 2013.

Shares of Tenet Healthcare Corp. rose 3.1 percent to $48.33 on Monday. Its shares lost $1.33, or 2.8 percent, to $47 in after-hours trading.