[May 10 - 10:24 a.m.] HealthStream inks deal with Tenet

Email | Print By Paige Orr

05-10-2004 10:26 AM — Nashville-based HealthStream (HSTM) has signed two contracts with the second largest for-profit hospital chain Tenet Healthcare Corp. (THC), in a deal that could boost HealthStream’s revenue by as much as $1.5 million.

Tenet has been the subject of federal investigations for its billing practices and in January announced plans to sell 27 hospitals as part of a restructuring plan.

HealthStream, a provider of health care learning solutions, announced today that Tenet would license its Learning Center platform through December 2005 and thereafter through a series of four annual renewable periods.

In the second contract, HealthStream will provide courseware maintenance services for Tenet’s 650+ courseware library through May 2007 and thereafter through four annual, renewable periods.

The HealthStream Learning Center will support and manage online and offline learning events, providing a scalable, single system for all education and training activities for Tenet’s hospitals.

Once the contract is fully implemented as expected in July 2004, HealthStream estimates annualized revenues under the agreements will range between $1.25 - $1.50 million, based on Tenet’s employee census and the additional services that they may select.

Shares of HealthStream were trading at $2.27 Monday morning, up 8.61%.