Tenet rises as Goldman Sachs recommends stock

In midday trading, the stock rose 64 cents, or 11.7 percent, to $6.09. The stock has ranged from 78 cents to $6.39 over the past year.

Gnall said Tenet will be able to save $50 million in 2010 by negotiating lower prices on orthopedic and heart devices. Compared to other hospital operators, she said Tenet is less vulnerable to unpaid bills due to patients who are unemployed or don't have health insurance.

She said all of Tenet's most important hospitals are in large urban markets, which gives the company the option of sending uninsured patients to other locations like county hospitals or clinics.