Q3 2024 Tenet Healthcare Corp Earnings Call Transcript
Key Points
- Tenet Healthcare Corp (THC) reported net operating revenues of $5.1 billion for the third quarter of 2024, with a consolidated adjusted EBITDA of $978 million, marking a 15% increase over the same period in 2023.
- The company experienced strong growth in its USPI segment, with adjusted EBITDA reaching $439 million, a 19% increase from the previous year.
- Same-facility revenues grew by 8.7%, with orthopedic volumes and total joint replacements in ASCs up 19% over the prior year.
- Tenet Healthcare Corp (THC) raised its full-year 2024 guidance for adjusted EBITDA to a range of $3.9 billion to $4 billion, reflecting strong performance across its business units.
- The company has successfully deleveraged its balance sheet, achieving a leverage ratio of around 3 on an EBITDA minus NCI basis, and is well-positioned for future growth and shareholder value creation.
- The sale of Alabama hospitals resulted in a $100 million reduction in the company's 2024 revenue guidance at the midpoint.
- Despite strong performance, Tenet Healthcare Corp (THC) faces ongoing challenges with managed care denials and disputes, which increase administrative costs.
- The company is still in the process of adopting the two-midnight rule in the Medicare Advantage market, which has not been fully implemented.
- Hurricane impacts affected 148 facilities, with one still shut down, potentially impacting fourth-quarter performance.
- The company has not provided specific guidance for 2025, citing ongoing business planning processes and key assumption evaluations.
Good morning, and welcome to Tenet Healthcare's third-quarter 2024, earnings conference call. (Operator Instructions)
I'll now turn the call over to your host, Mr. Will McDowell, Vice President of Investor Relations. Mr. McDowell, you may now begin.
Good morning, everyone, and thank you for joining today's call. I am Will McDowell, Vice President of Investor Relations. We're pleased to have you join us for a discussion of Tenet's third-quarter 2024 results as well as a discussion of our financial outlook.
Tenet senior management participating in today's call will be Dr. Saum Sutaria, Chairman and Chief Executive Officer; and Sun Park, Executive Vice President and Chief Financial Officer.
Our webcast this morning includes a slide presentation, which has been posted to the Investor Relations section of our website, tenethealth.com. Listeners to this call are advised that certain statements made during our discussion today are forward-looking and represent management's
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