Tenet's third quarter operating loss is much higher year-over-year, but adjusted EBITDA is within its outlook range, the company says.
The Michigan Nurses Association and several Huron Valley-Sinai Hospital nurses filed a lawsuit alleging the hospital has violated Michigan's public health code by refusing to act on complaints of "unsafe practice or conditions" at the hospital.
Tenet officially announced a restructuring plan that will eliminate 1,300 positions to offset the impacts of Hurricanes Harvey and Irma, dwindling admissions, and Medicaid cuts that together could generate a $367 million loss in the third quarter.
Tenet CEO Trevor Fetter has stepped down amid the company's financial troubles and planned reorganization, a move that Fetter foreshadowed months ago. Executive Chairman Ronald Rittenmeyer will fill in while the company continues its search for a permanent CEO.
With struggling giants Tenet Healthcare and Community Health Systems now sellers rather than buyers of hospitals, their competitors are paying a premium to acquire their coveted facilities.
Tenet has been busy shopping around its hospitals nationwide, and now it's sold MacNeal Hospital to Loyola Medicine. Dallas-based Tenet is looking to sell its other three hospitals in the area and exit the Chicago market entirely.
As the company endures softening hospital admissions, rising deductibles and other headwinds that have compressed operating margins across the industry, Tenet will cut leadership positions to streamline operations and cut costs.
Big hospital chains like HCA and Tenet expect to see a dent in their third-quarter earnings thanks to hurricanes and soft admissions. While hurricane damage may be a short-term issue, sinking admissions are here to stay industrywide.
Trevor Fetter, the outgoing CEO of Tenet Healthcare, is to receive a severance package of $22.9 million and $19.4 million in pension payments when his replacement is found, according to Tenet financial documents.
HCA is large enough to buy Tenet Healthcare. But antitrust regulators are likely to cast a wary eye toward HCA combining its 14 hospitals in South Florida with Tenet's 10 hospitals there.
Tenet's share rose sharply in after-hours trading Wednesday amid reports that the hospital chain is exploring a possible sale of the company.
Outgoing Tenet Healthcare CEO Trevor Fetter said investors should debate whether to break up Tenet around its three main business lines—hospitals, ambulatory surgery centers and revenue-cycle software—or leave the company whole.