As careful reader will have noted, a while back I had a punt on the guess that despite the difficulty in valuing the company Tenet shares have reached their bottom for the year. Well it appears that I was wrong. Yesterday after looking carefully at a deal for refinancing that was actually announced early the day before, the marketsmacked Tenet shares down $2 to close at $10. I’ve been lucky with some other health care gambles recently, and this time the market is teaching me humility.

Tenet has been postulated to have a break up value of around $9 a share. The unknown is how big a fine it will be hit with for the goings on at Redding Medical Center. However, the latest data seems to indicate that they’re burning through their cash a little quickly. I suspect that this is finally the bottom, although it may be that the increase in Medicare payments in the PDIMA act will be too little too late to help Tenet.