Tenet looks to sell Conifer business, cut more costs

AP News
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Posted: Dec 19, 2017 8:38 AM

The hospital chain Tenet Healthcare plans to cut more costs and sell a business after releasing a lighter-than-expected forecast for 2018.

Tenet shares slid in early trading Tuesday after it said adjusted earnings from continuing operations will range between $1.07 and $1.36 per share next year.

FactSet says analysts forecast, on average, earnings of $1.40 per share.

Tenet also says It will increase the size of a previously announced cost-reduction plan by $100 million and look to sell its Conifer business, which provides revenue cycle management services.

New CEO Ronald Rittenmeyer said in a statement that the company was taking "aggressive actions to improve financial performance." Rittenmeyer took over in September from long-time leader Trevor Fetter.

Dallas-based Tenet Healthcare Corp. reported a quarterly loss of $367 million in October.