Tenet On Road to Recovery

Still, there is some reason for hope. Last quarter, for example, Tenet posted rising admissions in a tough Philadelphia market that has been hurting the company for years. The company reported a remarkable turnaround at its largest Texas hospital as well.

In mid-2005, TheStreet.com highlighted marked deterioration -- and widespread physician dissatisfaction -- at Tenet's Houston Northwest Medical Center. Between 2004 and 2006, Tenet has since acknowledged, admissions at Houston Northwest plunged by more than 17%.

Last quarter, however, Tenet reported a solid 8.4% jump in admissions at Houston Northwest, continuing to build on gains posted under a popular new hospital CEO.

"You have to remember today's underperformers could be tomorrow's outperformers," Tenet stressed during the company's upbeat third-quarter conference call. "The Philadelphia market ... and Houston Northwest examples should demonstrate not only that our hospitals are capable of producing consistent results but also that many of them already are."

Miracle Cure

Tenet is hoping that strong leadership at the company in general -- and Florida in particular -- will translate into widespread gains.

With a physician installed as its operating chief, Tenet has already made notable progress in its big California and Texas markets. Recently, the company has snagged an accomplished executive from Triad -- long known for its physician-friendly ways -- to overhaul Florida and boost admissions in that crucial state as well.