The trend in admissions at Tenet Healthcare Corp. hospitals has turned around in the year since the company acquired American Medical International, officials told stock analysts last week.In announcing a 45% increase in third-quar ter net income, Chairman and Chief Executive Officer Jeffrey Barbakow reported that admissions were up 13% at Tenet's hospitals.That increase compares with a 2% decline in admissions a year ago at both Tenet and AMI, Barbakow said. Tenet, formerly called National Medical Enterprises, acquired AMI, a Dallas-based hospital chain, in March 1995.Officials said the trend in admissions demonstrates that combining the two companies improved their operations and rep utations in the communities they serve.Tenet reported that net income increased in the third quarter ended Feb. 29 to $70.7 million, or 33 cents per share, from $48.9 million, or 28 cents per share, in the year-ago quarter. Revenue s grew 117% to $1.4 billion.The boost in earnings and revenues can be attributed to the AMI acquisition.For the nine months, Tenet reported a 134% increase in net income to $371.8 million, or $1.74 per share, compared with $159.1 m illion, or 91 cents per share, in the year-ago period. Revenues rose 108% to $4.1 billion.Also last week, Tenet completed an agreement with its banks that lowers the hospital chain's cost of borrowing and releases some restrictions in its former debt pact. The agreement also will increase cash flow at the chain by relieving it of $45 million in mandatory quarterly paymentsThe new bank agreement prompted Standard & Poor's Corp. to raise its ratings on $800 mi llion of senior unsecured debt issued by Tenet. The New York-based ratings agency raised the bond rating to BB from BB- after Tenet signed the $1.55 billion unsecured bank credit facility. Officials of Santa Monica, Calif.-based Te net said the agreement, which is with 14 banks, replaces a secured bank term loan. They also said it reduces by three-eighths of a point the company's borrowing costs with its banks.
THE WEEK IN HEALTHCARE;HOSPITAL COMPANIES;TENET ADMISSIONS UP 13% IN 3RD QTR.
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