Tenet Healthcare (NYSE: THC) reported Q1 EPS of $1.28, $0.96 better than the analyst estimate of $0.32. Revenue for the quarter came in at $4.52 billion versus the consensus estimate of $4.63 billion.

• Net income from continuing operations attributable to common shareholders of $94 million, or $0.89 per diluted share, in 1Q20 versus a net loss from continuing operations of $20 million, or $0.19 per diluted share in 1Q19
• Strong operating performance through mid-March and ahead of expectations. Impact of COVID-19 pandemic in the latter half of March suppressed otherwise solid financial results for 1Q20 lowering net income from continuing operations attributable to common shareholders by approximately $73 million, or $0.69 per diluted share, and Adjusted EBITDA by approximately $125 million.
• Actively managing COVID-19 patient needs and adapting to the rapidly evolving environment continuing to provide the highest level of care to our patients. The Company’s hospital system is not being overwhelmed. As of May 1, 2020, the Company had 771 active COVID-19 patients in-house across its portfolio of 65 hospitals and 308 Patients Under Investigation (PUI) cases, many of which are inpatients with test results pending.
• Patient volumes declined significantly in the latter half of March due to governmental shelter-in-place orders and elimination of elective surgery related to COVID-19.
• The Company has taken numerous actions in April 2020 to enhance its liquidity.
• Due to the uncertainty of the current environment, projections of volumes and earnings for the remainder of the year create difficulty in predicting, with any precision, full year guidance. Significant impact from the pandemic is anticipated in 2Q20 with stabilization and recovery targeted in the second half of this year. The Company may provide updates as events unfold over the next several months.

“Our first quarter represents results that were trending above our expectations through early March and then, in a virtual snap of the finger, hit a wall created by the COVID-19 pandemic and the quick shutdown of elective surgeries and normal patient traffic,” said Ronald A. Rittenmeyer, Executive Chairman and Chief Executive Officer. “Our team responded quickly, focused on the safety of our patients and staff while ensuring we were caring for the potential and actual surge of COVID patients. This included forward purchasing of PPE and other supplies and equipment regardless of price, implementation of staffing deployment plans tailored to the unique elements of various markets, and the establishment of clear clinical protocols and safety measures standardized across operations.”

“We acted swiftly to mitigate the impact of significant volume reductions in our hospitals and surgery centers, enhance our operational and financial flexibility and redirect resources to critical operations. Simultaneously, we took actions to increase liquidity and defer capital spend and other costs that could be delayed without disrupting our mission. At all times, our patients have continued to receive excellent care with uninterrupted access to caregivers, medication and equipment. Conifer and our Global Business Center in Manila continued to operate and execute their respective missions.

“We have now shifted our focus to a comprehensive recovery effort across our entire system in compliance with state and local orders. We have begun to resume vital elective procedures and methodically re-open, with a detailed plan by physician, our USPI facilities and the hospital departments that were closed as a result of the pandemic.

“Importantly for Tenet, this recovery is led by the same team that has navigated the turnaround of Tenet during the past two years and through this pandemic. The team is energized and fully engaged in executing the recovery with the same tenacity and accountability that has served all our stakeholders well and will enable us to return, as soon as possible, to the trajectory we had in place in February.

“On behalf of myself and our Board, we want to thank our teams and all healthcare providers, who have responded to this public health emergency with strength and courage. We recognize and applaud the sacrifices our teams and others are making every day.”

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