Net operating revenues were $2.221 billion, an increase of $121 million, or 5.8 percent, compared to net operating revenues of $2.100 billion in the third quarter of 2011.

Bad debt expense as a percent of revenues was 8.5 percent, an increase of 20 basis points compared to 8.3 percent in the third quarter of 2011. The increase in bad debt expense was largely the result of the 7.9 percent increase in uninsured and charity outpatient visits.

Net patient revenue per adjusted admission was $11,579, an increase of 3.7 percent. This pricing increase primarily reflects improved terms in our contracts with commercial managed care payers.

Selected operating expenses, defined as the sum of salaries, wages and benefits, supplies and other operating expenses, increased by only 1.5 percent on a per adjusted admission basis. This favorable cost performance exceeded the Company’s expectations for the quarter. Supply costs were extremely well-controlled, declining 2.2 percent per adjusted admission.

Cash and cash equivalents were $83 million at September 30, 2012 compared to $82 million at June 30, 2012. The balance on the Company’s bank line was $175 million at September 30, 2012, a reduction of $25 million as compared to a balance of $200 million as of June 30, 2012. Approximately $60 million of California Provider Fee program revenues have been recognized in Adjusted EBITDA in 2012 that have not yet been received.

Outlook for Adjusted EBITDA in Fourth Quarter 2012 and Full Year 2013

The outlook range for Adjusted EBITDA in the fourth quarter of 2012 is $313 million to $353 million. This range reflects the delayed recognition of the revenue from the managed care portion of the California Provider Fee program into 2013. The Company’s Outlook for 2013 Adjusted EBITDA is in a range of $1.325 billion to $1.425 billion, slightly above analyst consensus estimates.

If you liked this article you might like

Friday Selloff May Be On Its Way; Tenet Gears Up for Sale -- ICYMI

Dow Posts Fresh Record, Third in a Row, but S&P 500 and Nasdaq Fall

Boeing, United Tech Lead Dow to Records but Rest of Market Flounders

No Buyers for All of Tenet, Analysts Say

Jim Cramer on Amazon, Walmart, Equifax, Tesla and Tenet Healthcare