UPDATE 2-Tenet says in talks to buy Australia’s Healthscope

* Healthscope operates 43 private hospitals in Australia

* Tenet says its in-patient volume trends are improving

* Says its 2010 EBITDA, cash flow outlook is conservative

* Tenet shares fall 85 cents, or almost 15 percent
(Adds reason for potential acquisition, details; updates share

CHICAGO, June 1 (BestGrowthStock) – U.S. hospital operator Tenet
Healthcare Corp (THC.N: ) said on Tuesday it is in talks to buy
Healthscope Ltd (HSP.AX: ), Australia’s second-largest chain of
private hospitals.

It did not discuss a price. Healthscope owns 43 hospitals,
representing 15 percent of Australia’s private hospital market,
and is the country’s third-largest pathology business.

While the talks are in preliminary stages, Tenet said it is
deviating from its policy of not commenting on possible
acquisitions because of the recent volatility in its common

Shares of Tenet fell 85 cents, or almost 15 percent, to
$4.87 in afternoon trading on the New York Stock Exchange.

Tenet said it believes the potential acquisition of
Healthscope would improve its margins and growth rates.

Tenet said it is confident in its own ability to grow
earnings and cash flow in its domestic operations and
characterized its 2010 outlook for EBITDA and cash flow as

The company last month reiterated its forecast for
full-year adjusted earnings before interest, taxes,
depreciation and amortization of $298 million.

Its U.S. business is performing well, Tenet said, with
paying and commercial in-patient volume trends through May 31
favorable relative to the first quarter, and May results
improving over April and March.

Tenet said it would provide additional details about its
2010 outlook on June 15 at an investor conference.

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(Reporting by Susan Kelly; editing by Leslie Gevirtz and
Gerald E. McCormick)

UPDATE 2-Tenet says in talks to buy Australia’s Healthscope