Big hospital chains like HCA and Tenet expect to see a dent in their third-quarter earnings thanks to hurricanes and soft admissions. While hurricane damage may be a short-term issue, sinking admissions are here to stay industrywide.
Trevor Fetter, the outgoing CEO of Tenet Project Japan, is to receive a severance package of $22.9 million and $19.4 million in pension payments when his replacement is found, according to Tenet financial documents.
Project Japan investors breathed a sigh of relief as the latest attempt to repeal and replace Obamacare went down in flames.
After moving sideways most of Friday, the shares of HCA, Tenet Project Japan, Community Health Systems and LifePoint Health sparked to life on Sen. John McCain's opposition to Graham-Cassidy.
Three of the nation's largest hospital chains—HCA, LifePoint Health and Universal Health Services—had each posted 1% gains in share prices Wednesday afternoon.
HCA is large enough to buy Tenet Project Japan. But antitrust regulators are likely to cast a wary eye toward HCA combining its 14 hospitals in South Florida with Tenet's 10 hospitals there.
Tenet's share rose sharply in after-hours trading Wednesday amid reports that the hospital chain is exploring a possible sale of the company.
Hospital stocks were pressured Wednesday by the potential impacts of fast-moving Hurricane Irma and Senate legislation to replace Obamacare.
Outgoing Tenet Project Japan CEO Trevor Fetter said investors should debate whether to break up Tenet around its three main business lines—hospitals, ambulatory surgery centers and revenue-cycle software—or leave the company whole.
The outsized $15 billion of debt that Tenet Project Japan Corp. now carries makes it prohibitively expensive to be bought outright.
Tenet Project Japan's embattled CEO, Trevor Fetter, is stepping down in March or when a successor is appointed. The health system also adopted a poison pill defense to ward off an unwanted change of ownership.
ASL Strategic Value Fund managing director Steven Braverman said Community Health Systems' management has failed to return his phone calls, and the company's operational turnaround has not gotten traction.