Tenet Healthcare: The facts

Tenet Healthcare is a publicly owned health care delivery systems company headquartered in Dallas, Texas. It towns 49 acute-care hospitals and 59 out-patient clinics, mostly in California , Florida and Texas. The hospitals offer a full range of services from diagnosis to surgery and recovery. The company's stock price has had significant fluctuations in the past few years, partly because of the changing health care laws.

About the company

Tenet began in 1967 as National Medical Enterprises and became Tenet Healthcare in 1995. Scandal plagued history The company was prospering when, in 2002, it was accused of performing unnecessary surgeries and medicare fraud. The blow to Tenet's reputation was severe. Back to respectability Since new management took over in 2003, the company has steadily gained back respect, and since 2009, has been profitable again. Tenet Healthcare jobs The company employs 57,000 people. There are career opportunites in the professions of nursing, physician, administrative and other areas. The company website at Tenethealth.com has a full list of job openings.

Tenet Healthcare stock

Tenet Healthcare Corp. trades on the New York Stock Exchange under the symbol THC. There are cross currents in the industry, and for THC in particular, which have made the stock volatile - a risky but potentially lucrative investment. Debt The company carries a very large debt load of nearly $4 billion, compared to a market capitalisation of just over $3 billion and cash flow of less then $500 million. The outlook has improved with the strengthening economy and the very low interest rate environment. Revenue growth Tenet has experienced 7% revenue growth in the past year. Though this is a positive development, it trails the industry average of 13%. New laws The passage of the health care law commonly known as Obamacare, has affected the entire medical industry. It is not even certain the law will withstand legal challenges. Short positions As of June 30, 2011, around 5% of the THC stock is sold short. This indicates that a substantial number of investors expect the stock price to go lower. Stock price chart Since 2009, THC has reversed the stock price slide that began in 2002. The price has recovered from under $3 per share to over $6. The stock price is now at a point that technicians consider critical, as it is right at the 200-day moving average. If it holds this level, this would be a very bullish signal. However, if it breaks significantly below the 200-day moving average, technicians espect further declines.