(January 9, 2018) It appears that Tenet is planning to lay off 2,000 workers, up from the 1,300 positions it said it originally planned to cut. The goal is to reduce annual costs by $250 million, $100 million more than originally publicized.
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Tenet has filed an SEC 8K (Report of unscheduled material events or corporate change) in which “the Company anticipates eliminating approximately 1,300 positions, including contractors” as part of a $150 million cost reduction initiative. The cost reductions will be “comprised primarily of headcount reductions and the renegotiation of contracts with suppliers and vendors.” Approximately 75 percent of the savings are expected to be achieved through actions within the Company’s Hospital Operations and other segments, including the elimination of a regional management layer and streamlining corporate overhead and centralized support functions. Tenet also expects to realize savings from actions within the Company’s Ambulatory Care and Conifer business segments.
The company has posted a $366 million net loss from continuing operations (for the Third Quarter of 2017) The reasons for the shortfall include “lower revenues and higher expenses related to Hurricanes Harvey and Irma and $10 million of lower-than-anticipated revenues from the Texas Medicaid Waiver and Florida Medicaid programs.”
Management changes continue and a new well-credentialed, well-experienced, high-powered Board member, James Bierman, joins the team.