Tenet Healthcare Sees 4Q Net, Announces $1.6 Billion Tender

   DOW JONES NEWSWIRES 
 

Tenet Healthcare Corp. (THC) sees a surprise fourth-quarter profit as it announced a $1.6 billion tender offer for outstanding notes, while the hospital operator said it would not confirm its 2009 forecast amid the uncertainty facing healthcare providers.

Tenet, which has been trying to reverse its fortunes after years of financial and legal trouble, said it would update its forecast when fourth-quarter results are released in late February.

In order to improve its financial flexibility, it it enacting more than $100 million in cost savings this year and launching the exchange of notes due 2011 and 2012 for the same amount of notes due 2014 and 2019.

Hospitals have been cutting back on capital spending in recent months, looking to save cash where possible like many businesses during the ongoing recession.

Meanwhile, Tenet projected fourth-quarter net income of $63 million amid same-hospital declines of 0.2% and 0.3%, respectively, for admissions and outpatient visits. Analysts surveyed by Thomson Reuters projected a net loss of $16.8 million.

Shares closed Wednesday's session at $1.24 and were not active premarket. The stock is down 80% the past four months.

-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310; [e-mail]

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