Oct. 2, 2013, 3:16 PM
- "The more you're exposed to states with large numbers of uninsured people, the better it is for a hospital in the future," Tenet Healthcare (THC +6.8%) CEO Trevor Fetter tells CNBC, regarding the outlook for the industry now that Obamacare is in place.
- This bodes well for THC, as its purchase of Vanguard Health Systems (VHS) doubled the company's size in the state of Texas, adding what Fetter says are "important" markets in San Antonio, Brownsville, and Harlingen.
- The VHS acquisition was completed yesterday.
Sep. 9, 2013, 3:20 PM
- Shares of Tenet Healthcare (THC -4.3%) fall after Fitch and Moody's both assign junk-level ratings to its proposed offering of senior notes, which it announced on Friday in a private offering to help fund its Vanguard Health purchase.
- The tranche of $1.8B in senior secured notes received a BB/RR1 rating from Fitch and a Ba3 rating from Moody's, while its proposed $2.8B tranche of senior unsecured notes got a B-/RR5 rating from Fitch and a B3 grade from Moody's.
- Fitch kept its Negative Watch on the ratings, citing strained free-cash-flow generation and "industry-lagging profitability" at both THC and VHS, which it plans to acquire.
- Moody's confirmed its B1 corporate family rating on Tenet and its outlook for the ratings is stable. However, it downgraded Tenet's Speculative Grade Liquidity Rating to SGL-3 from SGL-2, citing the anticipated cash need associated with upcoming maturities, and a belief Tenet's liquidity will be constrained in the near term by significant capital spending requirements.
Sep. 6, 2013, 2:30 PM
- To finance part its pending acquisition of Vanguard Health Systems (VHS +0.1%), Tenet Healthcare (THC -1.7%) is selling $2.8B of senior unsecured notes and $1.8B of senior secured notes through a private placement.
- The secured notes will be guaranteed by and secured by a pledge of the capital stock and other ownership interests of certain of Tenet's subsidiaries.
- In addition to financing the acquisition, some of the proceeds will also be used to refinance certain of Vanguard's existing indebtedness.
Aug. 22, 2013, 1:35 PM
- Vanguard Health Systems (VHS -0.1%) slips after RBC Capital cut the shares to Sector Perform from Outperform.
- Despite the downgrade, the firm ups its price target price on the stock to $21 from $16.
- VHS posted a mixed FQ4 report on Tuesday, matching EPS estimates but coming up just a bit shy on revenue.
Aug. 20, 2013, 6:08 AM| Comment!
Jun. 27, 2013, 12:31 PMHospital companies are experiencing systemic shifts in care delivery, according to a new Fitch Ratings report. Persistently weak trends in organic volume growth were evident across the spectrum in the for-profit hospital sector in Q1, with same-hospital admissions dropping 3.8% on average. Healthcare utilization patterns are likely being influenced by the growth of insurance products with higher patient responsibility for medical costs, and a shift away from strictly volume-based pricing schemes and toward value-based care. | 1 Comment
Jun. 24, 2013, 4:14 PMPiper Jaffray analyst Sean Wieland says athenahealth (ATHN -0.8%) could see some significant upside following Tenet's (NYSE: THC) deal to acquire Vanguard Health (VHS). Wieland postulates that ATHN could get an added $10M a year in added sales if VHS picks the company as an an ambulatory platform provider, calling its product a "better, more integrated" offering than McKesson's (MCK). | Comment!
Jun. 24, 2013, 12:45 PM
Jun. 24, 2013, 9:10 AM
Jun. 24, 2013, 6:58 AMHospital operator Tenet Healthcare (THC) has agreed to acquire smaller rival Vanguard Health Systems (VHS) for $4.3B including debt in a deal that will enable Tenet to expand into new territories. Tenet's offer of $21 a share represents a premium of 70% to Vanguard's Friday close of $12.37. Vanguard's shares are +66% premarket. (PR) | Comment!
Apr. 30, 2013, 5:45 PM
Mar. 25, 2013, 11:58 AMShares of Vanguard Health Systems (VHS -8.44%) take a hit today after the company announced that it had surprisingly lost a contract covering Medicaid patients in Arizona over the weekend. Magellan Health Services (MGLN -4.2%) also takes some of the heat, as it operates a joint venture for behavioral health with VHS in the state. | Comment!
Jan. 30, 2013, 7:42 PM
Oct. 30, 2012, 6:04 PM
Aug. 22, 2012, 5:20 PM
Jun. 29, 2012, 10:26 AMWells Fargo raises its rating on a number of hospital stocks stock this morning, saying the shares are "significantly undervalued" given the Supreme Court decision yesterday and will benefit significantly from expanded insurance coverage. The firm upgrades Community Health (CYH +2.5%), Tenet Healthcare (THC +1.7%), and Vanguard Health Systems (VHS +7.5%) all to Outperform. | Comment!
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