Tenet Healthcare Corp

MEDNAX’s YTD price movement was a mix of rises and falls in 2015. After the earnings report, MEDNAX fell 3.4% to close at $71.3 per share as of October 29, 2015.

Approximately 63% of Wyndham’s revenues come from fees for providing services referred to as its “fee-for-service” businesses.

National healthcare spending is a major driver of the hospital industry. National spending on hospital care is expected to amount to $973 million.

If you’re a moderate investor invested in high-yield bond mutual funds, you could consider moving some of your assets to investment grade funds (OPIGX).

In this six-part series, we’ll go through some of the main positions Appaloosa Management traded this past quarter. Why sell Microsoft (MSFT)?

Economic conditions like falling oil prices affect the healthcare industry with a lag. This makes the hospital industry a good investment option.

John Griffin’s Blue Ridge bought a stake in Apple Inc. (AAPL) last quarter. The stock accounts for a 1.85% position in the fund’s portfolio.

Investors could consider hedging their short-term duration risk (HYG: 3.98 years, JNK: 4.20 years) with a short position in longer-dated bonds.

The hospital sector is widely considered a non-cyclical or defensive industry, meaning demand for hospital services doesn’t change with the economic cycle.

In this six-part series, we’ll go through some of the main positions Appaloosa Management traded this past quarter. Why buy Ingredion Inc. (INGR)?

On February 26, 2016, Universal Health Services (UHS) was trading at a forward PE (price-to-earnings) multiple of about 13.8x.

In terms of payer mix, the percentage of HCA Holdings revenues contributed by Medicare rose from 28.0% in 3Q13 to 30.3% in 3Q14.

Wall Street analysts have projected that Universal Health Services’ net profit margin will increase marginally from 7.5% in 2015 to 7.6% in 2016.

These exchanges—also called “health insurance marketplaces”—sell federally regulated, subsidized health insurance to individuals and small businesses.

Expectations were that cannabis edibles could be available in Canadian stores by the end of 2019, but Manitoba could start selling edibles by next week.

Government programs Government programs like Medicare and Medicaid, combined with other health insurance plans such as the Children’s Health Insurance Program (or CHIP), Department of Defense, and Department of Veterans Affairs programs, comprise about 51% of the total payments for hospital care. There are also other third-party payers, like worksite healthcare, the Indian Health Service, […]

Capital projects in the hospital sector include purchasing new facilities, purchasing medical equipment, renovating and replacing existing hospitals, and investing in information systems infrastructure.

During the 1990s, the hospital industry underwent about 900 consolidation deals. These led to the formation of local markets, with limited hospital systems dominating cities like Boston, Pittsburgh, and Philadelphia.

In the capital-intensive hospital industry, economies of scale offer a competitive advantage by spreading out the high fixed costs, providing for higher margins.

An overview of teaching hospitals can help you predict future trends in hospital industry workforce management and, finally, the companies’ overall expenses.

According to the American Hospital Association (the AHA), uncompensated care costs in 2013 amounted to about $49 billion. Bad debt expenses closely relate to unemployment levels and the total number of uninsured people.

After a relatively lackluster performance in 2017, the three major for-profit hospital stocks in the US have seen a rapid rise in 2018.

Of the four analysts covering Civitas Solutions, two analysts have given the stock a “strong buy” rating, and two analysts have given it a “buy” rating.

To better position itself and compete effectively in this evolving healthcare environment, Tenet Healthcare has taken a number of steps.

At the end of December, Tenet Healthcare operated 76 hospitals, 20 surgical hospitals, and over 470 outpatient centers in the United States.

American Renal Associate Holdings (ARA) is the largest dialysis services provider in the United States.

Between November 22 and February 21, Universal Health Services stock has risen 19% to reach $117.

Rising interest rates don’t negatively affect healthcare as much as some other industries. But it has still underperformed since the US elections.

Last week brought the total US dollar-denominated issuance of high-yield debt to $61.6 billion YTD in 2016—47.0% lower compared to the same period in 2015.

Universal Health Services’ acute care revenues rose by 10.9%, from approximately $4.2 billion in 2014 to $4.6 billion, in 2015.

What drives LifePoint’s revenue? Major revenue drivers for LifePoint Health (LPNT) include: Equivalent admissions Medicare case mix index Average length of stay Inpatient and outpatient surgeries Emergency room visits Outpatient factor To learn more about the company’s organic growth strategy, please refer to Organic growth strategy at LifePoint Hospitals. Admissions on a consolidated basis LifePoint’s consolidated […]

In 2015, HCA Holdings deployed ~$2.4 billion in capital expenditure. It planned to increase capital spending to $2.7 billion in 2016.

J.M. Smucker posted EPS of $1.62, beating the consensus estimate of $1.52. It also reported net sales of ~$2.1 billion, in line with the market expectation.

The Health Care Select Sector SPDR ETF tumbled -1.7% on November 19 after UnitedHealth Group lowered its profit expectations for 2015 and cut its earnings forecast.

US investors seemed to take the weak Chinese manufacturing data released by Caixin in stride on November 2. China’s PMI rose from September’s reading of 47.2 to 48.3 for October 2015.

In 3Q15, Universal Health Services was actively involved in exploring growth opportunities, both in its acute care as well as behavioral health business.

High-yield bond issuance has clearly fallen as 2015 has progressed. For most of the first five months of 2015, issues related to refinancing needs dominated the primary market for high-yield bonds.

Universal Health Services’ behavioral health segment registered 14% growth in total revenue—from $946 million in 1Q14 to $1,076.3 million in 1Q15.

LifePoint Hospitals’ ambitious acquisition strategy is to buy hospitals in states that are adopting or are thought to be adopting Medicaid expansion.

Since 2011, the healthcare industry has seen a surge in mergers and acquisitions (M&A) activity, especially in the outpatient medical market.

Same-facility inpatient admissions and equivalent admissions in the behavioral health services segment increased by 3.2% and 3.5% from 2012 to 2013.

Universal Health Services (UHS) earns more than 50% of its total revenues from the Texas, Nevada, Florida, California, and District of Columbia markets.

The implementation of this tax, called the Cadillac tax, will take effect beginning 2018. Post-2018, the threshold will be indexed to general inflation

HCA Holdings earned 38% of its total revenue from outpatient services in 3Q14. The company also announced the acquisition of CareNow.

Hospital admissions are classified in two categories, inpatient admissions and outpatient admissions. Patients who are admitted overnight are inpatients.

Inflation closely relates to the performance of the healthcare industry (XLV), as it affects the rates that hospitals charge and the costs of medical care.

The healthcare industry, represented by the Healthcare Select Sector SPDR, is affected by the unemployment rate. Income affects people’s health choices.

Despite having negative equity, HCA Holdings is backed by strong operational performance and debt-to-EBITDA figures, which are among the lowest in the industry.

HCA Holdings uses advanced staffing solutions such as creating a centralized float pool of nurses instead of directly hiring nurses for different facilities.

HCA Holdings is capturing market share in the $15 billion urgent care clinic market field by focusing on acquiring or opening standalone urgent care clinics.

Passive investments account for more than 56% of HCA Holdings’ total ownership structure.

The company acquires hospitals to create regional networks, especially in states where more of the population is uninsured. By positioning itself to be the network provider in under-penetrated markets, the company can earn higher revenues.

Community Health Systems acquires two to four hospitals each year as a part of its growth strategy. Reducing duplicate functions at the corporate level reduces overhead salary costs.

Sources of revenue For-profit hospitals like HCA Holdings (HCA), Tenet Healthcare (THC), Universal Health Services (UHS), and Community Health Systems (CYH) receive payments from federal Medicare, state Medicaid, or similar programs, managed care, third-party payers, and directly from patients. You can reduce your dependence on payment variations from different payers by investing in the Healthcare Select Sector […]

DaVita HealthCare Partners (DVA) and Tenet Healthcare (THC) were among the more prominent HY debt issuers in the week ending June 13.

In the fourth quarter, Blue Ridge sold its stake in Ralph Lauren Corp. (RL). Ralph Lauren was a 1.80% position in the fund’s 3Q portfolio.

Blue Ridge opened a new position in specialty pharmaceutical company Actavis Plc (ACT) that accounts for 2.27% of the fund’s portfolio.

Should economic recovery and inflation data increase, it’s quite possible the 3.0% yield seen at the end of 2013 may become a near-term floor.

In this six-part series, we’ll go through some of the main positions Appaloosa Management traded this past quarter. Why sell Comcast Corp. (CMCSA)?