Highlights of Tenet Health:
- Tenet Health will be back in coverage network of Humana after the 2 companies negotiated a multi-year contract, South Florida Business Journal reported. The companies failed to reach a contract in the year of 2016, which left Humana members unable to get covered care in Tenet facilities.
- Humana has 1.72 million members in the state of Florida and 938,700 members in Texas, which is also Tenet’s greatest footprint with 130 facilities and 78 facilities.
- The companies didn’t reveal terms of the deal or the impact on the deal to each company’s finances.
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Details:
Texas-based Tenet, one of the nation’s greatest for-profit hospital systems, first declared that it had reached an agreement with Humana during its first-quarter earnings call in the month of May. At that time, Tenet Health officials said the latest deal with Humana would run through the year of May 2020.
Tenet Health said going back into the Humana network of providers represents “the majority of the revenue that Tenet previously generated from Humana under its prior contractual relationship.”
The contract is great news for both companies, Tenet sufferers and Humana members, who can now get covered care again at Tenet facilities.
Going back into the Humana network is a positive sign for Tenet, which recently reported losses. Tenet Health reported a $52 million net loss in continuing operations for the first quarter and a quarterly revenue loss of 3.3 percent in the fourth quarter of 2016. Tenet officials pointed to a deficiency of demand for the reason behind the losses. Tenet is also searching to sell three acute care hospitals in Texas to HCA Holdings in a $725 million deal expected to close in the third quarter.
Kentucky-based Humana, on the other hand, has declared better finances lately. The payer reported net income of $1.1 billion for the first quarter, which was a huge jump from $254 million in the similar period the previous year. Humana attempted to merge with Aetna, but dropped the idea after a court ruling blocked the deal. Even then, Humana officials said the failed merger assisted the company’s finances in the first quarter of this year.
Tenet is a huge healthcare provider with 100 hospitals and 470 outpatient centers in 47 states. Humana has about 14 million members.
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