Company profile

Ticker
THC
Exchange
CEO
Ronald A. Rittenmeyer
Employees
Incorporated in
Location
Fiscal year end
Former names
National Medical Enterprises Inc
SEC CIK
IRS number
952557091

THC stock data

(
)

Calendar

4 May 20
2 Jul 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Revenue 4.52B 4.81B 4.57B 4.56B
Net income 159M 129M -152M 112M
Diluted EPS 0.88 0.02 -2.24 0.16
Net profit margin 3.52% 2.68% -3.33% 2.46%
Operating income 327M 460M 294M 388M
Net change in cash 351M -52M 65M -3M
Cash on hand 613M 262M 314M 249M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 18.48B 18.31B 19.18B 19.62B
Net income 154M 466M -320M 176M
Diluted EPS -2.24 1.07 -7 -1.93
Net profit margin 0.83% 2.54% -1.67% 0.90%
Operating income 1.51B 1.65B 1.11B 1.25B
Net change in cash -149M -200M -105M 360M
Cash on hand 262M 411M 611M 716M

Financial data from company earnings reports

Date Owner Security Transaction Code $Price #Shares $Value #Remaining
29 May 20 Paola M Arbour Common Stock Payment of exercise Dispose F 21.76 611 13.3K 8,624
29 May 20 Paola M Arbour Common Stock Option exercise Aquire M 0 2,509 0 9,235
29 May 20 Paola M Arbour RSU Common Stock Option exercise Dispose M 0 2,509 0 2,509
29 May 20 Marie Quintana Common Stock Payment of exercise Dispose F 21.76 497 10.81K 7,628
29 May 20 Marie Quintana Common Stock Option exercise Aquire M 0 2,039 0 8,125
29 May 20 Marie Quintana RSU Common Stock Option exercise Dispose M 0 2,039 0 2,039
29 May 20 Austin Lloyd J. III Common Stock Grant Aquire A 0 11,139 0 29,868
29 May 20 Bierman James L Common Stock Grant Aquire A 0 11,139 0 42,242
29 May 20 Fisher Richard W Common Stock Grant Aquire A 0 11,139 0 41,825
13F holders
Current Prev Q Change
Total holders 248 261 -5.0%
Opened positions 47 58 -19.0%
Closed positions 60 40 +50.0%
Increased positions 92 78 +17.9%
Reduced positions 69 89 -22.5%
13F shares
Current Prev Q Change
Total value 1.5B 3.93B -61.7%
Total shares 103.96M 103.31M +0.6%
Total puts 2.72M 1.66M +63.9%
Total calls 2.94M 3.61M -18.4%
Total put/call ratio 0.9 0.5 +100.9%
Largest owners
Shares Value Change
Glenview Capital Management 19.74M $284.19M 0.0%
Vanguard 12.69M $182.68M +2.1%
BLK BlackRock 12.07M $173.79M -4.5%
Harris Associates L P 6.39M $92.02M +3.3%
Camber Capital Management 3.5M $50.4M +40.0%
STT State Street 3.44M $49.55M +1.2%
Dimensional Fund Advisors 2.78M $40.09M -2.5%
Letko, Brosseau & Associates 2.27M $32.73M -2.8%
Nantahala Capital Management 2.13M $30.69M +93.4%
JPM JPMorgan Chase & Co. 1.9M $27.41M -25.9%
Largest transactions
Shares Bought/sold Change
Cyrus Capital Partners 0 -1.97M EXIT
Norges Bank 0 -1.33M EXIT
Nantahala Capital Management 2.13M +1.03M +93.4%
Camber Capital Management 3.5M +1M +40.0%
JPM JPMorgan Chase & Co. 1.9M -665.96K -25.9%
Mudrick Capital Management 623.14K +623.14K NEW
BLK BlackRock 12.07M -563.29K -4.5%
Nut Tree Capital Management 1.65M +550K +50.0%
Renaissance Technologies 539.48K +511.2K +1808.0%
Citadel Advisors 599.89K +424.35K +241.7%

Financial report summary

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Risks
  • We cannot predict the impact that modifications of the Affordable Care Act may have on our business, financial condition, results of operations or cash flows.
  • Further changes in the Medicare and Medicaid programs or other government healthcare programs, including reductions in scale and scope, could have an adverse effect on our business.
  • Violations of existing regulations or failure to comply with new or changed regulations could harm our business and financial results.
  • A breach or any other failure to comply with our Non-Prosecution Agreement could subject us to criminal prosecution, substantial penalties and exclusion from participation in federal healthcare programs, any of which could adversely impact our business, financial condition, results of operations or cash flows.
  • We could be subject to substantial uninsured liabilities or increased insurance costs as a result of significant legal actions.
  • If we are unable to enter into, maintain and renew managed care contractual arrangements on acceptable terms, if we experience material reductions in the contracted rates we receive from managed care payers or if we have difficulty collecting from managed care payers, our results of operations could be adversely affected.
  • Our cost-reduction initiatives do not always deliver the benefits we expect, and actions taken may adversely affect our business, financial condition and results of operations.
  • We cannot provide any assurances that we will be successful in completing the proposed spin-off of Conifer or in divesting assets in non-core markets.
  • A spin-off of Conifer could adversely affect our earnings and cash flows.
  • Economic factors, consumer behavior and other dynamics have affected, and may continue to impact, our business, financial condition and results of operations.
  • Trends affecting our actual or anticipated results may require us to record charges that may negatively impact our results of operations.
  • When we acquire new assets or businesses, we become subject to various risks and uncertainties that could adversely affect our results of operations and financial condition.
  • USPI and our hospital-based joint ventures depend on existing relationships with key healthcare system partners. If we are unable to maintain historical relationships with these healthcare systems, or enter into new relationships, we may be unable to implement our business strategies successfully.
  • The remaining put/call arrangements associated with USPI, if settled in cash, will require us to utilize our cash flow or incur additional indebtedness to satisfy the payment obligations in respect of such arrangements.
  • Our joint venture arrangements are subject to a number of operational risks that could have a material adverse effect on our business, results of operations and financial condition.
  • It is essential to our ongoing business that we attract an appropriate number of quality physicians in the specialties required to support our services and that we maintain good relations with those physicians.
  • Our labor costs can be adversely affected by competition for staffing, the shortage of experienced nurses and labor union activity.
  • Our hospitals, outpatient centers and other healthcare businesses operate in competitive environments, and competition in our markets can adversely affect patient volumes.
  • Conifer operates in a highly competitive industry, and its current or future competitors may be able to compete more effectively than Conifer does, which could have a material adverse effect on Conifer’s margins, growth rate and market share.
  • Our level of indebtedness could, among other things, adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and prevent us from meeting our obligations under the agreements relating to our indebtedness.
  • We may not be able to generate sufficient cash to service all of our indebtedness, and we may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.
  • Restrictive covenants in the agreements governing our indebtedness may adversely affect us.
  • Despite current indebtedness levels, we may be able to incur substantially more debt or otherwise increase our leverage. This could further exacerbate the risks described above.
  • Our business could be negatively affected by security threats, catastrophic events and other disruptions affecting our information technology and related systems.
  • The utilization of our tax losses could be substantially limited if we experience an ownership change as defined in the Internal Revenue Code.
  • The industry trend toward value-based purchasing and alternative payment models may negatively impact our revenues.
Management Discussion
  • Same-hospital net operating revenues increased $717 million, or 5.0%, during the year ended December 31, 2019 compared to the year ended December 31, 2018, primarily due to volume growth, increased acuity and improved terms of our managed care contracts. Same-hospital admissions increased 2.3% in the year ended December 31, 2019 compared to the prior-year period. Same-hospital outpatient visits increased 0.9% in the year ended December 31, 2019 compared to the prior-year period.
  • When we have an unconditional right to payment, subject only to the passage of time, the right is treated as a receivable. Patient accounts receivable, including billed accounts and certain unbilled accounts, as well as estimated amounts due from third-party payers for retroactive adjustments, are receivables if our right to consideration is unconditional and only the passage of time is required before payment of that consideration is due. Estimated uncollectable amounts are generally considered implicit price concessions that are a direct reduction to patient accounts receivable rather than allowance for doubtful accounts. Amounts related to services provided to patients for which we have not billed and that do not meet the conditions of unconditional right to payment at the end of the reporting period are contract assets. For our Hospital Operations and other segment, our contract assets consist primarily of services that we have provided to patients who are still receiving inpatient care in our facilities at the end of the reporting period. Our Hospital Operations and other segment’s contract assets are included in other current assets in the accompanying Consolidated Balance Sheet at December 31, 2019.
  • Collection of accounts receivable has been a key area of focus, particularly over the past several years. At December 31, 2019, our Hospital Operations and other segment collection rate on self-pay accounts was approximately 22.5%. Our self-pay collection rate includes payments made by patients, including co-pays, co-insurance amounts and deductibles paid by patients with insurance. Based on our accounts receivable from uninsured patients and co-pays, co-insurance amounts and deductibles owed to us by patients with insurance at December 31, 2019, a 10% decrease or increase in our self-pay collection rate, or approximately 2%, which we believe could be a reasonably likely change, would result in an unfavorable or favorable adjustment to patient accounts receivable of approximately $10 million. There are various factors that can impact collection trends, such as changes in the economy, which in turn have an impact on unemployment rates and the number of uninsured and underinsured patients, the volume of patients through our emergency departments, the increased burden of co-pays and deductibles to be made by patients with insurance, and business practices related to collection efforts. These factors continuously change and can have an impact on collection trends and our estimation process.
Content analysis ?
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