Tenet Healthcare Corporation (NYSE:THC) has unveiled its financial results for the second quarter of 2024.
The healthcare provider reported a net income of $259 million for the quarter, equating to $2.64 per diluted share, which nearly doubled from $123 million, or $1.15 per diluted share, in the same period last year.
The company's adjusted EBITDA surged to $945 million, up from $843 million in the second quarter of 2023.
This increase was primarily driven by strong same-hospital admission growth, enhanced ambulatory net revenue per case, a favorable payer mix, and improved contract labor costs.
Additionally, Tenet recognized a $30 million favorable pre-tax impact from additional Medicaid supplemental revenues in Texas, further boosting its financial position.
While the company's cash flow from operating activities reached $1.333 billion for the first half of the year, compared to $1.047 billion in the previous year, its free cash flow stood impressively at $948 million for the same period.
Meanwhile, Tenet has completed its previous $1 billion share repurchase program and has moved to authorize a new $1.5 billion share repurchase initiative.
The repurchases are set to occur based on management discretion, influenced by market conditions and other relevant factors.
Looking forward, Tenet has adjusted its FY 2024 forecasts, now expecting adjusted EBITDA to range between $3.825 billion to $3.975 billion—a $300 million increase from earlier projections.
Its free cash flow outlook has also been revised upwards by $150 million, now anticipated to be between $1.100 billion and $1.350 billion.