Tenet To Post Loss In Q3; Announces Cost Reduction, To Eliminate 1,300 Positions

(RTTNews) - Tenet Healthcare Corp. (THC) announced the company anticipates reporting net operating revenues after provision for doubtful accounts of approximately $4.586 billion and a net loss from continuing operations attributable to shareholders of approximately $366 million, or $3.63 per share, in the third quarter of 2017. After adjusting for certain items, Tenet expects to report an adjusted net loss from continuing operations attributable to shareholders of approximately $17 million, or $0.17 per share. The company plans to report its final financial results for the third quarter on November 6, 2017.

Tenet also announced it has begun the implementation of an enterprise-wide cost reduction initiative - comprised primarily of headcount reductions and the renegotiation of contracts with suppliers and vendors - which is intended to lower annual operating expenses by $150 million. Approximately 75 percent of the savings are expected to be achieved through actions within the Hospital Operations and other segment. In total, the company anticipates eliminating approximately 1,300 positions, including contractors.

The company anticipates achieving the full annualized run-rate savings by the end of 2018. In conjunction with the initiative, Tenet expects to incur pre-tax restructuring costs of approximately $40 million in the fourth quarter of 2017.

The company's board appointed James Bierman to the board, effective immediately. Tenet's board now consists of 10 directors, nine of whom are independent. Bierman served as President and Chief Executive Officer of Owens & Minor, Inc. from September 2014 to June 2015.