Updated 6:10 pm, Monday, August 7, 2017
Photo: WILLIAM LUTHER /SAN ANTONIO EXPRESS-NEWS
Shares of Tenet Healthcare Corp. plunged by more than 12 percent in after-hours trading Monday after the company reported a wider-than-expected loss for the second quarter and lowered its earnings outlook for the rest of the year.
The Dallas-based company, which operates Baptist Health System in San Antonio, reported a net loss attributable to shareholders of $55 million, or 55 cents per common share, for the quarter ending June 30, down from a $46 million loss in the same quarter last year.
Wall Street analysts expected the company to post a loss for the quarter, projecting an loss attributable to shareholders after adjusting for one-off items of $14.9 million, but Tenet reported a loss of $17 million for the same measure. The company attributed much of the loss to a decline in hospital admissions. The company also reported higher losses from uninsured patients.
“While we experienced a softer volume environment in the second quarter, our teams responded well with solid performance on cost control, which mitigated the impact on our results,” Tenet CEO Trevor Fetter said in a news release.
Tenet has been involved in public fights with two insurers in the past year, agreeing to a new contract in March with Blue Cross Blue Shield of Texas after the insurer told brokers the pair were splitting, and starting a new agreement with Humana in June following a nine-month separation.
Tenet Healthcare shares plunge after 2Q earnings miss expectations