Hospitals

Tenet Healthcare Corporation

Tenet Healthcare <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: THC)") else Response.Write("(NYSE: THC)") end if %> is going for the profitability through size strategy, with its latest move being the acquisition of OrNda HealthCorp. OrNda adds 50 hospitals and a number of surgery centers to the Tenet fold, making it about half the size of Columbia/HCA. Tenet is the most highly leveraged of the larger members of the peer group and runs much lower profit margins than its larger competitor, Columbia/HCA. Tenet is developing a comprehensive healthcare company, with its own HMO, preferred provider subsidiary, rehabilitation centers, and other diverse units. In future years, the dichotomy between this company and the more focused Columbia/HCA will become apparent.

Latest Financials

Earnings per share from continuing operations for the fiscal year were $1.46, an increase of 15% from $1.27 in the prior year. EPS numbers exclude the effects of all unusual or non-recurring items, which resulted in a net loss for the year. Results reflect the pooling of interests merger with OrNda HealthCorp on Jan. 30, 1997.

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