Tenet Healthcare’s ambulatory revenue rose 9.3% year over year to $1.39 billion in the second quarter. The segment’s adjusted EBITDA margin reached 39%. BMO Capital Markets initiated coverage on Sept. 22 with a Market Perform rating and a $265 price target.
United Surgical Partners International (USPI), Tenet’s ambulatory platform, had interests in 538 ambulatory surgery centers as of June 30 and operated 26 surgical hospitals across 37 states. Its ambulatory EBITDA grew 8.8% in Q2. Tenet depends on commercial insurers and government payers; the article also cites reimbursement changes, competition for surgeons and higher acquisition prices as risks to the business.
Insider Monkey’s database showed 61 hedge funds held Tenet shares in Q2, up from 57 in Q1. Glenview Capital increased its stake 47% to about $418.25 million, while Citadel Investment Group raised its position 322% to about $330.30 million. Short interest fell from 2.52 million shares on Aug. 14 to 2.02 million on Sept. 15, about 2.50% of shares outstanding.
