Tenet Healthcare Corp. THC reported first-quarter 2016 operating earnings of 45 cents per share that outperformed the Zacks Consensus Estimate of 33 cents by 36.4%. However, the bottom line declined 32.8% on a year-over-year basis.Tenet Healthcare Corporation (THC) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompanyOperational UpdateFirst-quarter net operating revenue of Tenet Healthcare came in at $5.0 billion, up 14.0% from the prior-year quarter and also above the company’s guided range of $4.7–$4.9 billion. The improvement was largely attributable to an increase in revenues from hospital operations, the Conifer segment and the ambulatory segment.The company reported adjusted EBITDA of $613 million for the first quarter, up 15.9% year over year.Tenet Healthcare’s net patient revenue per adjusted admission inched up 0.7% year over year to $11,838.Total admissions increased 1.7% to $211.8 million and adjusted admissions rose 3.9% to $362.8 million, both on a year-over-year basis. Additionally, the area of strategic focus through surgeries improved 9.2% year over year to $132.6 million. Emergency department visits increased 10 bps year over year to 64.2%.As a percentage of revenues, bad debt expense ratio was 6.9%, down from 7.6% in the year-ago quarter.Tenet Healthcare's uninsured plus charity admissions declined 3.8% on the same hospital basis in the reported quarter.Financial PositionAs of Mar 31, 2016, Tenet Healthcare had cash and cash equivalents of $728 million, up 104.5% from $356 million as of Dec 31, 2015. The increase in cash and debt balances was due to cash proceeds that the company received from the sale Atlanta-area hospitals, which was completed on Mar 31, 2016. The company exited the first quarter with total assets worth $23.8 billion, up 0.4% from $23.7 billion as of Dec 31, 2015.Shareholders’ equity as of Mar 31, 2016 was $625 million, up 9.6% from $691 million as of Dec 31, 2015.The company recorded net operating cash flow of $147 million in the quarter. It had reported cash outflow of $57 million in the year-ago quarter.In the first quarter, the company reported adjusted free cash flow of $11 million. In the prior-year quarter the company had posted cash outflow of $204 million.Reaffirmed 2016 OutlookFor 2016, Tenet Healthcare projects revenues in the range of $18.8–$19.2 billion, adjusted EBITDA of $2.4–$2.5 billion and adjusted earnings per diluted share of $1.18–$2.25.The guidance projects equity in earnings of unconsolidated affiliates between $150 million and $170 million. Electronic health record incentives are expected in the range of $25–$35 million.Tenet Healthcare expects to deliver adjusted free cash flow of $400–$600 million.Second-Quarter 2016 OutlookFor the second quarter, the company expects revenues in the range of $4.8–$5.0 billion, adjusted EBITDA of $600–$650 million and adjusted earnings per diluted share of 20–73 cents.The outlook projects equity in earnings of unconsolidated affiliates of about $30 million and electronic health record incentives of around $15 million.Zacks Rank and Other Stocks in the Healthcare SpaceCurrently, Tenet Healthcare carries a Zacks Rank #3 (Hold). Among the other stocks in the health care space that have reported their first-quarter earnings so far, the bottom line at UnitedHealth Group Incorporated UNH and Aetna Inc. AET surpassed their respective Zacks Consensus Estimate. Moreover, Cigna Corp. CI is slated to report its first-quarter earnings on May 6, before the market opens.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CIGNA CORP (CI): Free Stock Analysis Report AETNA INC-NEW (AET): Free Stock Analysis Report UNITEDHEALTH GP (UNH): Free Stock Analysis Report TENET HEALTH (THC): Free Stock Analysis Report To read this article on Zacks.com click here.