NEW YORK (TheStreet) -- Tenet Healthcare Corp.  (THC - Get Report) stock is up by 9.05% to $29.89 on heavy trading volume on Monday, after the company announced a four-year extension of its contract with its largest health plan customer, Aetna (AET). 

The Hartford, CT-based health care company's 8.5 million members will have in-network access to Tenet's hospitals. Tenet has 87 hospitals and 218 outpatient centers across the country.

"We are pleased to have extended and expanded our long-standing relationship with Aetna," Clint Hailey, Tenet's chief managed care officer, said in a statement. "Aetna, our largest health plan customer, recognizes the value in having Tenet's hospitals and other care facilities in its networks, and we look forward to continue delivering trusted services to its members."

The agreement is effective on January 1. 

Aetna stock is up by 1.20% to $109.72 in mid-afternoon trading on Monday.

So far today, 3.62 million shares of Tenet have traded, versus its 30-day average of 2.42 million shares.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate TENET HEALTHCARE CORP as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • THC's revenue growth has slightly outpaced the industry average of 10.2%. Since the same quarter one year prior, revenues rose by 12.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 118.09% to $482.00 million when compared to the same quarter last year. In addition, TENET HEALTHCARE CORP has also vastly surpassed the industry average cash flow growth rate of 11.35%.
  • TENET HEALTHCARE CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TENET HEALTHCARE CORP turned its bottom line around by earning $0.32 versus -$1.20 in the prior year. This year, the market expects an improvement in earnings ($2.06 versus $0.32).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry. The net income has significantly decreased by 422.2% when compared to the same quarter one year ago, falling from $9.00 million to -$29.00 million.
  • The debt-to-equity ratio is very high at 18.40 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, THC maintains a poor quick ratio of 0.73, which illustrates the inability to avoid short-term cash problems.
  • You can view the full analysis from the report here: THC