News in brief - May 23/30, 2005

Tenet's loss narrows - WebMD, Eclipsys announce management changes

Tenet's loss narrows

Tenet Healthcare Corp. nearly broke even in the first quarter, posting significantly improved results that leaders attributed in part to stronger admissions, a stabilization of bad debt and continued cost management.

For the quarter that ended March 31, Tenet reported a net loss of $3 million, or 1 cent per share, compared with a net loss of $122 million, or 26 cents per share, for the same period last year. Revenue fell 2.9% to $2.50 billion from $2.57 billion in the same quarter a year earlier.

Trevor Fetter, Tenet's president and chief executive, said the results showed "encouraging signs for our business."

The Dallas-based hospital chain suffered a series of financial setbacks over the last couple of years as it became mired in several lawsuits and government investigations.

Adding to those woes, Tenet announced on April 29 it had received a subpoena from the U.S. Attorney in Memphis seeking documents related to physician relocation agreements. Tenet said the subpoena appeared to be consistent with similar requests by federal prosecutors in other states who are reviewing the company's relationships with physicians.

WebMD, Eclipsys announce management changes

WebMD Corp. in April named Wayne Gattinella and David Gang as co-CEOs of its online health information division, WebMD Health. They succeed Roger Holstein.

Gattinella will remain president of WebMD Health. Gang, formerly at America Online Inc., also will assume the post of chief operating officer of WebMD Health when he joins the firm in June. WebMD, Elmwood Park, N.J., processes medical transactions and sells software to physicians.

Separately, Eclipsys Corp. named chair and director Eugene Fife as interim CEO, replacing Paul Ruflin. The Boca Raton, Fla.-based seller of hospital information systems has retained an outside firm to search for a CEO.