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Tenet Healthcare sees first-quarter loss

Tenet Healthcare Corp., already grappling with several investigations, on Tuesday said it would post a significant net loss in the first quarter because of restructuring charges and losses from hospitals the company is selling.
/ Source: Reuters

Tenet Healthcare Corp., already grappling with several investigations, on Tuesday said it would post a significant net loss in the first quarter because of restructuring charges and losses from hospitals the company is selling.

The company said it expects to report a net loss of about $117 million, or 25 cents per share. That estimate includes special items totaling about 30 cents per share.

Analysts on average expect the company to breakeven for the quarter, with estimates ranging from a loss of 10 cents to a profit of 15 cents per share, according to Reuters Research, a unit of Reuters Group Plc.

First-quarter revenue fell to $2.67 billion from $2.75 billion in the year-earlier period.

Admissions at Tenet facilities open at least a year were 0.5 percent lower for the quarter.

Tenet said it had cash and cash equivalents of about $507 million as of March 31. Some credit ratings agencies have questioned Tenet's liquidity in the future, but Tenet plans to sell many of its hospitals and focus on its most profitable.

U.S. federal investigators have probed — in separate investigations — physician relocation agreements at Tenet hospitals, the way the company sought reimbursement from the Medicare program, acquisitions Tenet had executed and unnecessary heart procedures at a Tenet facility.