Tenet Healthcare Corp., Santa Barbara, Calif., said it lost $20 million, or 4 cents per share, for the three months ended March 31, its first quarter under a new fiscal year that coincides with the calendar year. For the same three months in 2002, Tenet earned $278 million, or 55 cents per share. Revenue was up 2.3%, to nearly $3.5 billion. The quarter also was the first full quarter for Tenet under its voluntary policy on Medicare outlier reimbursement and the first in which the company counted employee stock options as an expense. Tenet said its outlier revenue fell to $18 million from $197 million in fiscal 2002's first quarter. The company said its plans to sell or close 14 hospitals also dragged down results, by 7 cents per share. Admissions at the 99 hospitals not included in the sell-or-close group were up 1.8% from the previous quarter, with outpatient visits up 0.4%, Tenet said. -- by Vince Galloro
Tenet's profits plunge under new outlier policy
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