DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE:THC) reported Adjusted EBITDA of $568
million for the second quarter of 2015, an increase of $108 million, or
23.5 percent, compared to $460 million in the second quarter of 2014.
The results for the second quarter of 2015 included $16 million of
Adjusted EBITDA generated by United Surgical Partners International
(USPI) and Aspen Healthcare, which were acquired by Tenet on June 16,
2015.
“This was another strong quarter for Tenet with EBITDA that exceeded our
expectations,” said Trevor Fetter, chairman and chief executive officer.
“We continued to focus on aggressive implementation of our strategy to
improve care delivery and more closely align our business with key
trends shaping the healthcare system. In our hospital business, we made
progress on multiple strategic partnerships that will help us achieve
leadership positions in our markets, as well as plans to divest
facilities. We also completed our joint venture with USPI, which makes
us the leader in the fast-growing ambulatory surgery sector. We continue
to position Tenet as a partner of choice for not-for-profit health
systems, and we remain incredibly optimistic about the many
opportunities to grow with new and existing partners through our acute
care business, USPI and Conifer.”
Discussion of Results (Percentage changes in operating metrics
compare Q2’15 to Q2’14 on a same-facility basis unless otherwise noted.)
Tenet generated same-hospital growth in admissions and adjusted
admissions of 1.7 percent and 2.3 percent, respectively, compared to the
second quarter of 2014. Paying admissions increased 2.1 percent,
reflecting growth in the number of newly insured patients. Surgeries
performed in our hospital segment increased 1.5 percent and emergency
department visits increased 2.4 percent. On a pro forma same-facility
system-wide basis, including the results of USPI and Aspen in both the
second quarters of 2015 and 2014, surgical and imaging cases in our
Ambulatory Care segment grew by 6.8 percent.
The company continues to benefit from declines in uninsured and charity
volumes. In the six states in which we operate that expanded their
Medicaid programs, same-hospital uninsured plus charity admissions
declined by 639 admissions, or 31.5 percent, and Medicaid admissions
increased by 767 admissions, or 2.6 percent. Uninsured plus charity
outpatient visits decreased by 8,729 visits, or 15.8 percent, and
Medicaid outpatient visits grew by 32,714 visits, or 9.2 percent. The
six states are comprised of five states that expanded Medicaid in 2014
(Arizona, California, Illinois, Massachusetts and Michigan) and one
state that expanded Medicaid in 2015 (Pennsylvania).
Including non-expansion states, same-hospital uninsured plus charity
admissions decreased by 539 admissions, or 4.9 percent, and Medicaid
admissions increased by 1,082 admissions, or 2.0 percent. There was a
decline in same-hospital charity and uninsured outpatient visits of
10,225 visits, or 6.2 percent, and an increase in Medicaid outpatient
visits of 38,872 visits, or 7.3 percent.
Tenet’s same-hospital exchange volumes were 5,301 admissions and 46,882
outpatient visits in the second quarter. Compared to the first quarter
of 2015, the company drove increases in exchange admissions and exchange
outpatient visits of 19.6 percent and 35.4 percent, respectively.
Net operating revenues, after the provision for doubtful accounts, grew
by $454 million, or 11.2 percent, to $4.492 billion compared to net
operating revenues of $4.038 billion in the second quarter of 2014. The
majority of the company’s revenue growth was driven by a 2.3 percent
increase in same-hospital adjusted patient admissions, a 4.5 percent
increase in same-hospital net patient revenue per adjusted patient
admission, and a $28 million increase in revenue at Conifer from
non-Tenet customers, representing a growth rate of 19.0 percent. A
portion of the company’s 4.5 percent growth in same-hospital net patient
revenue per adjusted admission was due to the company recognizing $45
million of revenues in the second quarter of 2015 related to the
California provider fee program compared to no revenues in the second
quarter of 2014 since the current program was not approved until
December 2014. The year-over-year revenue growth also benefitted from
acquisitions, joint ventures and newly constructed facilities.
Total hospital selected operating expenses, defined as the sum of
salaries, wages and benefits, supplies and other operating expenses,
increased 2.1 percent per adjusted admission in the quarter.
Tenet recorded $33 million in electronic health records incentives in
the second quarter of 2015, a $25 million decrease compared to $58
million in the second quarter of 2014. Electronic health record
incentive payments are recorded based on the timing of when the
company’s hospitals achieve meaningful use criteria.
The company’s bad debt expense ratio was 7.3 percent of revenues before
bad debt in both the second quarter of 2015 and 2014. Including $199
million and $240 million of charity care write-offs in the second
quarters of 2015 and 2014, respectively, Tenet’s uncompensated care
expense was $551 million and $560 million, respectively, in these
periods. As a percentage of adjusted revenue, uncompensated care expense
represented 10.9 percent of adjusted revenue in the second quarter of
2015, down from 12.2 percent in the second quarter of 2014.
Conifer generated $60 million of Adjusted EBITDA in the quarter ended
June 30, 2015, representing a 36.4 percent increase compared to $44
million in the second quarter of 2014. Including revenue from Tenet,
Conifer’s revenue increased by $55 million, or 19.3 percent, to $340
million in the second quarter of 2015 compared to revenues of $285
million in the second quarter of 2014.
Tenet generated adjusted net income from continuing operations of $76
million, or $0.75 per diluted share, in the second quarter of 2015. This
excludes $136 million, or $1.35 per share, in after-tax impairment
charges, restructuring charges, acquisition-related costs, and
litigation and investigation costs. The company generated adjusted net
income from continuing operations of $17 million, or $0.17 per diluted
share, in the second quarter of 2014, excluding the comparable items
that totaled $27 million after-tax, or $0.28 per share.
Including the results of both continuing and discontinued operations,
Tenet reported a net loss attributable to common shareholders of $61
million after-tax, or $0.61 per share in the second quarter of 2015,
compared to a net loss of $26 million after-tax, or $0.27 per share, in
the second quarter of 2014.
Cash and cash equivalents were $299 million at June 30, 2015 compared to
$193 million at December 31, 2014. Tenet’s outstanding borrowings on its
credit line were $100 million as of June 30, 2015. Accounts receivable
days outstanding were 50.7 at June 30, 2015 compared to 49.5 days at
December 31, 2014. On a pro forma basis, including the revenue from USPI
and Aspen for the entire second quarter, accounts receivable days
outstanding would have been 48.8 at June 30, 2015. Adjusted net cash
provided by operating activities in the quarter ended June 30, 2015 was
$467 million; after subtracting $175 million of capital expenditures,
adjusted free cash flow was $292 million.
Revised Outlook for 2015
During 2015, Tenet expects to generate net operating revenues of $18.1
billion to $18.5 billion, Adjusted EBITDA of $2.225 billion to $2.325
billion, Adjusted free cash flow of $225 million to $425 million, and
Adjusted earnings per share of $1.32 to $2.21. This includes
approximately $65 million of electronic health record incentives.
In the third quarter of 2015, Tenet expects to generate net operating
revenues of $4.65 billion to $4.85 billion, Adjusted EBITDA of $550
million to $600 million and Adjusted earnings per share of $0.05 to
$0.49. This includes approximately $8 million of electronic health
record incentives.
These Outlook amounts include the estimated impact of acquisitions,
divestitures and joint ventures using either the actual completion date
of transactions that have already occurred or estimated completion dates
later this year. Each transaction that has not yet been completed is
subject to normal closing conditions and regulatory review, and in the
case of the potential hospital sales in Georgia and North Carolina, the
negotiation of acceptable terms and the execution of definitive
agreements. The Outlook for both calendar year 2015 and the third
quarter of 2015 include the following transactions that were completed
or are assumed to be completed by the end of 2015:
-
Tenet’s joint venture with USPI, which was completed on June 16, 2015.
Tenet is the majority owner and is now consolidating the results of
USPI.
-
Tenet’s acquisition of Aspen Healthcare, which was completed on June
16, 2015. Tenet owns 100% of Aspen and is now consolidating its
financial results.
-
Tenet’s announced joint venture with Baylor Scott & White Health in
Dallas. Tenet will be a minority owner in the partnership and will
de-consolidate the results of its four hospitals in Dallas. If
completed, Tenet will account for its ownership in these hospitals
under the equity method of accounting.
-
Tenet’s announced joint venture with Baptist Health System in
Birmingham, Alabama. If completed, Tenet will be the majority owner
and will consolidate the financial results of this partnership.
-
Tenet’s announced joint venture with Dignity Health and Ascension to
own and operate the Carondelet Health Network in Tucson, Arizona. If
completed, Tenet will be the majority owner and will consolidate the
financial results of this partnership.
-
Tenet’s acquisition via a long-term lease of Hi-Desert Medical Center
in Joshua Tree, California, which was completed on July 15, 2015.
Tenet will be consolidating the financial results of Hi-Desert.
-
Tenet’s announced sale of Saint Louis University Hospital in St.
Louis, Missouri; and,
-
The potential sales of Tenet’s hospitals in Georgia and North Carolina.
Tenet expects to generate net cash proceeds of approximately $1 billion
from the transactions listed above, excluding the cash payments for USPI
and Aspen. Tenet’s estimate of approximately $1 billion of net cash
proceeds includes the anticipated working capital proceeds and the
buyers’ assumption of Tenet’s capital lease obligations at certain
hospitals. The company anticipates using these net proceeds for general
corporate purposes, including the potential to repay portions of Tenet’s
existing debt.
Management’s Webcast Discussion of Second Quarter Results
Tenet management will discuss the Company’s second quarter 2015 results
on a webcast scheduled for 10:00 a.m. ET (9:00 a.m. CT) on August 4,
2015. Investors can access the webcast through Tenet’s website at www.tenethealth.com/investors.
A set of slides, which will be referred to on the conference call, is
available on the Quarterly Results section of the Company’s website.
Additional information regarding Tenet’s quarterly results of
operations, including detailed tabular operational data, is contained in
its Form 10-Q report for the three months ended June 30, 2015, which
will be filed with the Securities and Exchange Commission and posted on
the Tenet website before the webcast. This press release includes
certain non-GAAP measures, such as Adjusted EBITDA. A reconciliation of
Adjusted EBITDA to net income attributable to Tenet common shareholders
is included in the financial tables at the end of this release.
Tenet Healthcare Corporation is a diversified healthcare services
company with more than 125,000 employees united around a common mission:
to help people live happier, healthier lives. Through its subsidiaries,
partnerships and joint ventures, including United Surgical Partners
International (USPI), the company operates 81 general acute care
hospitals, 19 short-stay surgical hospitals and over 400 outpatient
centers in the United States, as well as nine facilities in the United
Kingdom. Tenet’s Conifer Health Solutions subsidiary provides
technology-enabled performance improvement and health management
solutions to hospitals, health systems, integrated delivery networks
(IDN), physician groups, self-insured organizations and health plans.
For more information, please visit www.tenethealth.com.
The terms "THC," "Tenet Healthcare Corporation," "the company," "we,"
"us" or "our" refer to Tenet Healthcare Corporation or one or more of
its subsidiaries or affiliates as applicable.
This release contains “forward-looking statements” – that is, statements
that relate to future, not past, events. In this context,
forward-looking statements often address our expected future business
and financial performance and financial condition, and often contain
words such as “expect,” “assume,” “anticipate,” “intend,” “plan,”
“believe,” “seek,” “see,” or “will.” Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
Particular uncertainties that could cause our actual results to be
materially different than those expressed in our forward-looking
statements include, but are not limited to, the factors disclosed under
“Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the
year ended December 31, 2014 and other filings with the Securities and
Exchange Commission. In addition, the Company’s 2015 outlook could be
materially affected if any of the acquisitions or divestiture
transactions do not close within the anticipated timeframe, the terms of
the transactions materially change or the closing conditions for such
transactions are not satisfied. The information contained in this
release is as of the date hereof. The company assumes no obligation to
update forward-looking statements contained in this release as a result
of new information or future events or developments.
Tenet uses its company website to provide important information to
investors about the company including the posting of important
announcements regarding financial performance and corporate developments.
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per share amounts)
|
|
|
Three Months Ended June 30,
|
|
|
|
|
2015
|
|
|
%
|
|
|
2014
|
|
|
%
|
|
|
Change
|
|
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues before provision for doubtful accounts
|
|
|
$
|
4,844
|
|
|
|
|
|
|
$
|
4,358
|
|
|
|
|
|
|
11.2
|
%
|
|
Less: Provision for doubtful accounts
|
|
|
|
352
|
|
|
|
|
|
|
|
320
|
|
|
|
|
|
|
10.0
|
%
|
|
Net operating revenues
|
|
|
|
4,492
|
|
|
|
100.0
|
%
|
|
|
|
4,038
|
|
|
|
100.0
|
%
|
|
|
11.2
|
%
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
16
|
|
|
|
0.4
|
%
|
|
|
|
4
|
|
|
|
0.1
|
%
|
|
|
300.0
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
2,185
|
|
|
|
48.6
|
%
|
|
|
|
1,956
|
|
|
|
48.4
|
%
|
|
|
11.7
|
%
|
|
Supplies
|
|
|
|
707
|
|
|
|
15.7
|
%
|
|
|
|
649
|
|
|
|
16.1
|
%
|
|
|
8.9
|
%
|
|
Other operating expenses, net
|
|
|
|
1,081
|
|
|
|
24.1
|
%
|
|
|
|
1,035
|
|
|
|
25.6
|
%
|
|
|
4.4
|
%
|
|
Electronic health record incentives
|
|
|
|
(33
|
)
|
|
|
(0.7
|
)%
|
|
|
|
(58
|
)
|
|
|
(1.4
|
)%
|
|
|
(43.1
|
)%
|
|
Depreciation and amortization
|
|
|
|
197
|
|
|
|
4.4
|
%
|
|
|
|
209
|
|
|
|
5.2
|
%
|
|
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
193
|
|
|
|
4.3
|
%
|
|
|
|
32
|
|
|
|
0.8
|
%
|
|
|
|
|
Litigation and investigation costs
|
|
|
|
14
|
|
|
|
0.3
|
%
|
|
|
|
12
|
|
|
|
0.3
|
%
|
|
|
|
|
Operating income
|
|
|
|
164
|
|
|
|
3.7
|
%
|
|
|
|
207
|
|
|
|
5.1
|
%
|
|
|
|
|
Interest expense
|
|
|
|
(217
|
)
|
|
|
|
|
|
|
(190
|
)
|
|
|
|
|
|
|
|
Investment earnings (losses)
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, before income taxes
|
|
|
|
(54
|
)
|
|
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
Income tax benefit (expense)
|
|
|
|
27
|
|
|
|
|
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, before discontinued
operations
|
|
|
|
(27
|
)
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
Litigation and investigation costs
|
|
|
|
—
|
|
|
|
|
|
|
|
(18
|
)
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
|
1
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
(16
|
)
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
(28
|
)
|
|
|
|
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
33
|
|
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
Net loss attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
(61
|
)
|
|
|
|
|
|
$
|
(26
|
)
|
|
|
|
|
|
|
|
Amounts attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations, net of tax
|
|
|
$
|
(60
|
)
|
|
|
|
|
|
$
|
(10
|
)
|
|
|
|
|
|
|
|
Net loss from discontinued operations, net of tax
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
(16
|
)
|
|
|
|
|
|
|
|
Net loss attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
(61
|
)
|
|
|
|
|
|
$
|
(26
|
)
|
|
|
|
|
|
|
|
Net loss per share attributable to Tenet Healthcare Corporation
common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.60
|
)
|
|
|
|
|
|
$
|
(0.11
|
)
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.16
|
)
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.61
|
)
|
|
|
|
|
|
$
|
(0.27
|
)
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.60
|
)
|
|
|
|
|
|
$
|
(0.11
|
)
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.16
|
)
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.61
|
)
|
|
|
|
|
|
$
|
(0.27
|
)
|
|
|
|
|
|
|
|
Weighted average shares and dilutive securities outstanding (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
99,244
|
|
|
|
|
|
|
|
97,677
|
|
|
|
|
|
|
|
|
Diluted*
|
|
|
|
99,244
|
|
|
|
|
|
|
|
97,677
|
|
|
|
|
|
|
|
*Had we generated income from continuing operations in the three months
ended June 30, 2015 and 2014, the effect of employee stock options,
restricted stock units and deferred compensation units on the diluted
shares calculation would have been an increase of 2,673 and 2,123 shares
respectively.
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per share amounts)
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2015
|
|
|
%
|
|
|
2014
|
|
|
%
|
|
|
Change
|
|
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues before provision for doubtful accounts
|
|
|
$
|
9,631
|
|
|
|
|
|
|
$
|
8,663
|
|
|
|
|
|
|
11.2
|
%
|
|
Less: Provision for doubtful accounts
|
|
|
|
715
|
|
|
|
|
|
|
|
700
|
|
|
|
|
|
|
2.1
|
%
|
|
Net operating revenues
|
|
|
|
8,916
|
|
|
|
100.0
|
%
|
|
|
|
7,963
|
|
|
|
100.0
|
%
|
|
|
12.0
|
%
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
20
|
|
|
|
0.2
|
%
|
|
|
|
5
|
|
|
|
0.1
|
%
|
|
|
300.0
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
4,310
|
|
|
|
48.3
|
%
|
|
|
|
3,877
|
|
|
|
48.7
|
%
|
|
|
11.2
|
%
|
|
Supplies
|
|
|
|
1,394
|
|
|
|
15.6
|
%
|
|
|
|
1,277
|
|
|
|
16.0
|
%
|
|
|
9.2
|
%
|
|
Other operating expenses, net
|
|
|
|
2,174
|
|
|
|
24.4
|
%
|
|
|
|
2,034
|
|
|
|
25.5
|
%
|
|
|
6.9
|
%
|
|
Electronic health record incentives
|
|
|
|
(39
|
)
|
|
|
(0.4
|
)%
|
|
|
|
(67
|
)
|
|
|
(0.8
|
)%
|
|
|
(41.8
|
)%
|
|
Depreciation and amortization
|
|
|
|
404
|
|
|
|
4.5
|
%
|
|
|
|
402
|
|
|
|
5.0
|
%
|
|
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
222
|
|
|
|
2.5
|
%
|
|
|
|
53
|
|
|
|
0.7
|
%
|
|
|
|
|
Litigation and investigation costs
|
|
|
|
17
|
|
|
|
0.2
|
%
|
|
|
|
15
|
|
|
|
0.2
|
%
|
|
|
|
|
Operating income
|
|
|
|
454
|
|
|
|
5.1
|
%
|
|
|
|
377
|
|
|
|
4.7
|
%
|
|
|
|
|
Interest expense
|
|
|
|
(416
|
)
|
|
|
|
|
|
|
(372
|
)
|
|
|
|
|
|
|
|
Investment earnings (losses)
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Net income from continuing operations, before income taxes
|
|
|
|
37
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
Income tax benefit (expense)
|
|
|
|
11
|
|
|
|
|
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, before discontinued
operations
|
|
|
|
48
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
(15
|
)
|
|
|
|
|
|
|
|
Litigation and investigation costs
|
|
|
|
3
|
|
|
|
|
|
|
|
(18
|
)
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
|
—
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations
|
|
|
|
—
|
|
|
|
|
|
|
|
(21
|
)
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
48
|
|
|
|
|
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
62
|
|
|
|
|
|
|
|
35
|
|
|
|
|
|
|
|
|
Net loss attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
(14
|
)
|
|
|
|
|
|
$
|
(58
|
)
|
|
|
|
|
|
|
|
Amounts attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations, net of tax
|
|
|
$
|
(14
|
)
|
|
|
|
|
|
$
|
(37
|
)
|
|
|
|
|
|
|
|
Net loss from discontinued operations, net of tax
|
|
|
|
—
|
|
|
|
|
|
|
|
(21
|
)
|
|
|
|
|
|
|
|
Net loss attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
(14
|
)
|
|
|
|
|
|
$
|
(58
|
)
|
|
|
|
|
|
|
|
Net loss per share attributable to Tenet Healthcare Corporation
common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.14
|
)
|
|
|
|
|
|
$
|
(0.38
|
)
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
—
|
|
|
|
|
|
|
|
(0.22
|
)
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.14
|
)
|
|
|
|
|
|
$
|
(0.60
|
)
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.14
|
)
|
|
|
|
|
|
$
|
(0.38
|
)
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
—
|
|
|
|
|
|
|
|
(0.22
|
)
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.14
|
)
|
|
|
|
|
|
$
|
(0.60
|
)
|
|
|
|
|
|
|
|
Weighted average shares and dilutive securities outstanding (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
98,972
|
|
|
|
|
|
|
|
97,419
|
|
|
|
|
|
|
|
|
Diluted*
|
|
|
|
98,972
|
|
|
|
|
|
|
|
97,419
|
|
|
|
|
|
|
|
*Had we generated income from continuing operations in the six months
ended June 30, 2015 and 2014, the effect of employee stock options,
restricted stock units and deferred compensation units on the diluted
shares calculation would have been an increase of 2,423 and 2,053
shares, respectively.
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
(Dollars in millions)
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
299
|
|
|
|
$
|
193
|
|
|
Accounts receivable, less allowance for doubtful accounts
|
|
|
|
2,505
|
|
|
|
|
2,404
|
|
|
Inventories of supplies, at cost
|
|
|
|
261
|
|
|
|
|
276
|
|
|
Income tax receivable
|
|
|
|
27
|
|
|
|
|
2
|
|
|
Current portion of deferred income taxes
|
|
|
|
637
|
|
|
|
|
747
|
|
|
Assets held for sale
|
|
|
|
1,170
|
|
|
|
|
2
|
|
|
Other current assets
|
|
|
|
1,110
|
|
|
|
|
1,093
|
|
|
Total current assets
|
|
|
|
6,009
|
|
|
|
|
4,717
|
|
|
Investments and other assets
|
|
|
|
1,017
|
|
|
|
|
384
|
|
|
Deferred income taxes, net of current portion
|
|
|
|
89
|
|
|
|
|
116
|
|
|
Property and equipment, at cost, less accumulated depreciation and
amortization
|
|
|
|
7,135
|
|
|
|
|
7,733
|
|
|
Goodwill
|
|
|
|
6,602
|
|
|
|
|
3,913
|
|
|
Other intangible assets, at cost, less accumulated amortization
|
|
|
|
1,894
|
|
|
|
|
1,278
|
|
|
Total assets
|
|
|
$
|
22,746
|
|
|
|
$
|
18,141
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
$
|
117
|
|
|
|
$
|
112
|
|
|
Accounts payable
|
|
|
|
1,149
|
|
|
|
|
1,179
|
|
|
Accrued compensation and benefits
|
|
|
|
770
|
|
|
|
|
852
|
|
|
Professional and general liability reserves
|
|
|
|
204
|
|
|
|
|
189
|
|
|
Accrued interest payable
|
|
|
|
204
|
|
|
|
|
194
|
|
|
Liabilities held for sale
|
|
|
|
244
|
|
|
|
|
—
|
|
|
Other current liabilities
|
|
|
|
1,086
|
|
|
|
|
1,051
|
|
|
Total current liabilities
|
|
|
|
3,774
|
|
|
|
|
3,577
|
|
|
Long-term debt, net of current portion
|
|
|
|
14,637
|
|
|
|
|
11,695
|
|
|
Professional and general liability reserves
|
|
|
|
546
|
|
|
|
|
492
|
|
|
Defined benefit plan obligations
|
|
|
|
627
|
|
|
|
|
633
|
|
|
Other long-term liabilities
|
|
|
|
553
|
|
|
|
|
558
|
|
|
Total liabilities
|
|
|
|
20,137
|
|
|
|
|
16,955
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests in equity of consolidated
subsidiaries
|
|
|
|
1,591
|
|
|
|
|
401
|
|
|
Equity:
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
7
|
|
|
|
|
7
|
|
|
Additional paid-in capital
|
|
|
|
4,774
|
|
|
|
|
4,614
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(177
|
)
|
|
|
|
(182
|
)
|
|
Accumulated deficit
|
|
|
|
(1,424
|
)
|
|
|
|
(1,410
|
)
|
|
Common stock in treasury, at cost
|
|
|
|
(2,377
|
)
|
|
|
|
(2,378
|
)
|
|
Total shareholders’ equity
|
|
|
|
803
|
|
|
|
|
651
|
|
|
Noncontrolling interests
|
|
|
|
215
|
|
|
|
|
134
|
|
|
Total equity
|
|
|
|
1,018
|
|
|
|
|
785
|
|
|
Total liabilities and equity
|
|
|
$
|
22,746
|
|
|
|
$
|
18,141
|
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
(Unaudited)
|
|
|
|
|
|
|
Six Months Ended
|
|
(Dollars in millions)
|
|
|
June 30,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
Net income (loss)
|
|
|
$
|
48
|
|
|
|
$
|
(23
|
)
|
|
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
404
|
|
|
|
|
402
|
|
|
Provision for doubtful accounts
|
|
|
|
715
|
|
|
|
|
700
|
|
|
Deferred income tax benefit
|
|
|
|
(27
|
)
|
|
|
|
(7
|
)
|
|
Stock-based compensation expense
|
|
|
|
33
|
|
|
|
|
26
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
222
|
|
|
|
|
53
|
|
|
Litigation and investigation costs
|
|
|
|
17
|
|
|
|
|
15
|
|
|
Amortization of debt discount and debt issuance costs
|
|
|
|
21
|
|
|
|
|
14
|
|
|
Pre-tax loss from discontinued operations
|
|
|
|
—
|
|
|
|
|
33
|
|
|
Other items, net
|
|
|
|
(25
|
)
|
|
|
|
(9
|
)
|
|
Changes in cash from operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(779
|
)
|
|
|
|
(937
|
)
|
|
Inventories and other current assets
|
|
|
|
36
|
|
|
|
|
78
|
|
|
Income taxes
|
|
|
|
9
|
|
|
|
|
(17
|
)
|
|
Accounts payable, accrued expenses and other current liabilities
|
|
|
|
(267
|
)
|
|
|
|
(32
|
)
|
|
Other long-term liabilities
|
|
|
|
40
|
|
|
|
|
47
|
|
|
Payments for restructuring charges, acquisition-related costs,
and litigation costs and settlements
|
|
|
|
(86
|
)
|
|
|
|
(84
|
)
|
|
Net cash used in operating activities from discontinued
operations, excluding income taxes
|
|
|
|
(8
|
)
|
|
|
|
(12
|
)
|
|
Net cash provided by operating activities
|
|
|
|
353
|
|
|
|
|
247
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of property and equipment — continuing operations
|
|
|
|
(359
|
)
|
|
|
|
(523
|
)
|
|
Purchases of businesses or joint venture interests, net of cash
acquired
|
|
|
|
(636
|
)
|
|
|
|
(42
|
)
|
|
Proceeds from sales of marketable securities, long-term investments
and other assets
|
|
|
|
9
|
|
|
|
|
3
|
|
|
Other long-term assets
|
|
|
|
—
|
|
|
|
|
(14
|
)
|
|
Other items, net
|
|
|
|
1
|
|
|
|
|
—
|
|
|
Net cash used in investing activities
|
|
|
|
(985
|
)
|
|
|
|
(576
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Repayments of borrowings under credit facility
|
|
|
|
(1,315
|
)
|
|
|
|
(1,300
|
)
|
|
Proceeds from borrowings under credit facility
|
|
|
|
1,195
|
|
|
|
|
895
|
|
|
Repayments of other borrowings
|
|
|
|
(1,992
|
)
|
|
|
|
(68
|
)
|
|
Proceeds from other borrowings
|
|
|
|
3,187
|
|
|
|
|
1,108
|
|
|
Deferred debt issuance costs
|
|
|
|
(72
|
)
|
|
|
|
(19
|
)
|
|
Distributions paid to noncontrolling interests
|
|
|
|
(23
|
)
|
|
|
|
(20
|
)
|
|
Contributions from noncontrolling interests
|
|
|
|
3
|
|
|
|
|
13
|
|
|
Purchase of noncontrolling interests
|
|
|
|
(254
|
)
|
|
|
|
—
|
|
|
Proceeds from exercise of stock options
|
|
|
|
9
|
|
|
|
|
11
|
|
|
Other items, net
|
|
|
|
—
|
|
|
|
|
2
|
|
|
Net cash provided by financing activities
|
|
|
|
738
|
|
|
|
|
622
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
106
|
|
|
|
|
293
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
193
|
|
|
|
|
113
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
299
|
|
|
|
$
|
406
|
|
|
Supplemental disclosures:
|
|
|
|
|
|
|
|
Interest paid, net of capitalized interest
|
|
|
$
|
(385
|
)
|
|
|
$
|
(360
|
)
|
|
Income tax refunds (payments), net
|
|
|
$
|
(8
|
)
|
|
|
$
|
(19
|
)
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS(1)
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per patient day,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per admission and per visit amounts)
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2015
|
|
|
2014(2)
|
|
|
Change
|
|
|
|
2015(2)
|
|
|
2014(2)
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net inpatient revenues
|
|
|
$
|
2,623
|
|
|
|
$
|
2,393
|
|
|
|
9.6
|
%
|
|
|
|
$
|
5,313
|
|
|
|
$
|
4,834
|
|
|
|
9.9
|
%
|
|
|
Net outpatient revenues
|
|
|
$
|
1,484
|
|
|
|
$
|
1,367
|
|
|
|
8.6
|
%
|
|
|
|
$
|
2,896
|
|
|
|
$
|
2,643
|
|
|
|
9.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of acute care hospitals (at end of period)
|
|
|
|
80
|
|
|
|
|
79
|
|
|
|
1
|
|
*
|
|
|
|
80
|
|
|
|
|
79
|
|
|
|
1
|
|
*
|
|
Licensed beds (at end of period)
|
|
|
|
20,826
|
|
|
|
|
20,553
|
|
|
|
1.3
|
%
|
|
|
|
|
20,826
|
|
|
|
|
20,553
|
|
|
|
1.3
|
%
|
|
|
Average licensed beds
|
|
|
|
20,826
|
|
|
|
|
20,370
|
|
|
|
2.2
|
%
|
|
|
|
|
20,823
|
|
|
|
|
20,313
|
|
|
|
2.5
|
%
|
|
|
Utilization of licensed beds
|
|
|
|
49.1
|
%
|
|
|
|
48.9
|
%
|
|
|
0.2
|
%
|
*
|
|
|
|
50.6
|
%
|
|
|
|
49.9
|
%
|
|
|
0.7
|
%
|
*
|
|
Patient days - total
|
|
|
|
929,840
|
|
|
|
|
907,093
|
|
|
|
2.5
|
%
|
|
|
|
|
1,905,752
|
|
|
|
|
1,836,257
|
|
|
|
3.8
|
%
|
|
|
Adjusted patient days
|
|
|
|
1,589,567
|
|
|
|
|
1,540,290
|
|
|
|
3.2
|
%
|
|
|
|
|
3,207,969
|
|
|
|
|
3,063,611
|
|
|
|
4.7
|
%
|
|
|
Net inpatient revenue per patient day
|
|
|
$
|
2,821
|
|
|
|
$
|
2,638
|
|
|
|
6.9
|
%
|
|
|
|
$
|
2,788
|
|
|
|
$
|
2,633
|
|
|
|
5.9
|
%
|
|
|
Total admissions
|
|
|
|
201,908
|
|
|
|
|
194,641
|
|
|
|
3.7
|
%
|
|
|
|
|
410,241
|
|
|
|
|
388,914
|
|
|
|
5.5
|
%
|
|
|
Adjusted patient admissions
|
|
|
|
349,122
|
|
|
|
|
333,927
|
|
|
|
4.6
|
%
|
|
|
|
|
698,191
|
|
|
|
|
655,841
|
|
|
|
6.5
|
%
|
|
|
Charity and uninsured admissions
|
|
|
|
10,535
|
|
|
|
|
10,927
|
|
|
|
(3.6
|
)%
|
|
|
|
|
21,485
|
|
|
|
|
23,457
|
|
|
|
(8.4
|
)%
|
|
|
Net inpatient revenue per admission
|
|
|
$
|
12,991
|
|
|
|
$
|
12,294
|
|
|
|
5.7
|
%
|
|
|
|
$
|
12,951
|
|
|
|
$
|
12,429
|
|
|
|
4.2
|
%
|
|
|
Average length of stay (days)
|
|
|
|
4.61
|
|
|
|
|
4.66
|
|
|
|
(1.1
|
)%
|
|
|
|
|
4.65
|
|
|
|
|
4.72
|
|
|
|
(1.5
|
)%
|
|
|
Total surgeries
|
|
|
|
127,523
|
|
|
|
|
123,660
|
|
|
|
3.1
|
%
|
|
|
|
|
248,926
|
|
|
|
|
241,503
|
|
|
|
3.1
|
%
|
|
|
Admissions through emergency department
|
|
|
|
128,570
|
|
|
|
|
122,086
|
|
|
|
5.3
|
%
|
|
|
|
|
262,114
|
|
|
|
|
244,687
|
|
|
|
7.1
|
%
|
|
|
Emergency department visits
|
|
|
|
742,951
|
|
|
|
|
702,009
|
|
|
|
5.8
|
%
|
|
|
|
|
1,484,484
|
|
|
|
|
1,367,011
|
|
|
|
8.6
|
%
|
|
|
Total emergency department admissions and visits
|
|
|
|
871,521
|
|
|
|
|
824,095
|
|
|
|
5.8
|
%
|
|
|
|
|
1,746,598
|
|
|
|
|
1,611,698
|
|
|
|
8.4
|
%
|
|
|
Outpatient visits
|
|
|
|
2,063,037
|
|
|
|
|
1,927,597
|
|
|
|
7.0
|
%
|
|
|
|
|
4,057,610
|
|
|
|
|
3,747,229
|
|
|
|
8.3
|
%
|
|
|
Charity and uninsured outpatient visits
|
|
|
|
159,634
|
|
|
|
|
166,725
|
|
|
|
(4.3
|
)%
|
|
|
|
|
316,831
|
|
|
|
|
328,850
|
|
|
|
(3.7
|
)%
|
|
|
Net outpatient revenue per visit
|
|
|
$
|
719
|
|
|
|
$
|
709
|
|
|
|
1.4
|
%
|
|
|
|
$
|
714
|
|
|
|
$
|
705
|
|
|
|
1.3
|
%
|
|
|
Net patient revenue per adjusted patient admission
|
|
|
$
|
11,764
|
|
|
|
$
|
11,260
|
|
|
|
4.5
|
%
|
|
|
|
$
|
11,758
|
|
|
|
$
|
11,401
|
|
|
|
3.1
|
%
|
|
|
Net patient revenue per adjusted patient day
|
|
|
$
|
2,584
|
|
|
|
$
|
2,441
|
|
|
|
5.9
|
%
|
|
|
|
$
|
2,559
|
|
|
|
$
|
2,441
|
|
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Patient Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare
|
|
|
|
20.7
|
%
|
|
|
|
22.6
|
%
|
|
|
(1.9
|
)%
|
*
|
|
|
|
21.3
|
%
|
|
|
|
22.6
|
%
|
|
|
(1.3
|
)%
|
*
|
|
Medicaid
|
|
|
|
8.5
|
%
|
|
|
|
10.1
|
%
|
|
|
(1.6
|
)%
|
*
|
|
|
|
9.0
|
%
|
|
|
|
9.0
|
%
|
|
|
—
|
%
|
*
|
|
Managed care
|
|
|
|
60.8
|
%
|
|
|
|
57.8
|
%
|
|
|
3.0
|
%
|
*
|
|
|
|
59.9
|
%
|
|
|
|
58.0
|
%
|
|
|
1.9
|
%
|
*
|
|
Indemnity, self-pay and other
|
|
|
|
10.0
|
%
|
|
|
|
9.5
|
%
|
|
|
0.5
|
%
|
*
|
|
|
|
9.8
|
%
|
|
|
|
10.4
|
%
|
|
|
(0.6
|
)%
|
*
|
|
(1)
|
|
Represents the results of Tenet’s Hospital Operations and other
segment.
|
|
(2)
|
|
The results for 2014 and the quarter ended March 31, 2015 have been
restated to exclude the results of the surgery and imaging centers
that Tenet contributed to the joint venture with United Surgical
Partners International. The results for these surgery and imaging
centers are now reported in Tenet’s Ambulatory Care segment.
|
|
*
|
|
This change is the difference between the 2015 and 2014 amounts shown
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1)
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per patient day,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per admission and per visit amounts)
|
|
|
Three Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2015
|
|
|
2014(2)
|
|
|
Change
|
|
|
|
2015(2)
|
|
|
2014(2)
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net inpatient revenues
|
|
|
$
|
2,576
|
|
|
|
$
|
2,400
|
|
|
|
7.3
|
%
|
|
|
|
$
|
5,224
|
|
|
|
$
|
4,840
|
|
|
|
7.9
|
%
|
|
|
Net outpatient revenues
|
|
|
$
|
1,438
|
|
|
|
$
|
1,355
|
|
|
|
6.1
|
%
|
|
|
|
$
|
2,815
|
|
|
|
$
|
2,632
|
|
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of acute care hospitals (at end of period)
|
|
|
|
77
|
|
|
|
|
77
|
|
|
|
—
|
|
*
|
|
|
|
77
|
|
|
|
|
77
|
|
|
|
—
|
|
*
|
|
Licensed beds (at end of period)
|
|
|
|
20,419
|
|
|
|
|
20,355
|
|
|
|
0.3
|
%
|
|
|
|
|
20,419
|
|
|
|
|
20,355
|
|
|
|
0.3
|
%
|
|
|
Average licensed beds
|
|
|
|
20,419
|
|
|
|
|
20,304
|
|
|
|
0.6
|
%
|
|
|
|
|
20,416
|
|
|
|
|
20,280
|
|
|
|
0.7
|
%
|
|
|
Utilization of licensed beds
|
|
|
|
49.1
|
%
|
|
|
|
49.0
|
%
|
|
|
0.1
|
%
|
*
|
|
|
|
50.6
|
%
|
|
|
|
50.0
|
%
|
|
|
0.6
|
%
|
*
|
|
Patient days - total
|
|
|
|
913,127
|
|
|
|
|
905,839
|
|
|
|
0.8
|
%
|
|
|
|
|
1,871,492
|
|
|
|
|
1,835,003
|
|
|
|
2.0
|
%
|
|
|
Adjusted patient days
|
|
|
|
1,558,637
|
|
|
|
|
1,538,038
|
|
|
|
1.3
|
%
|
|
|
|
|
3,145,127
|
|
|
|
|
3,061,358
|
|
|
|
2.7
|
%
|
|
|
Net inpatient revenue per patient day
|
|
|
$
|
2,821
|
|
|
|
$
|
2,649
|
|
|
|
6.5
|
%
|
|
|
|
$
|
2,791
|
|
|
|
$
|
2,638
|
|
|
|
5.8
|
%
|
|
|
Total admissions
|
|
|
|
197,390
|
|
|
|
|
194,167
|
|
|
|
1.7
|
%
|
|
|
|
|
401,205
|
|
|
|
|
388,440
|
|
|
|
3.3
|
%
|
|
|
Adjusted patient admissions
|
|
|
|
340,791
|
|
|
|
|
333,073
|
|
|
|
2.3
|
%
|
|
|
|
|
681,626
|
|
|
|
|
654,988
|
|
|
|
4.1
|
%
|
|
|
Charity and uninsured admissions
|
|
|
|
10,361
|
|
|
|
|
10,900
|
|
|
|
(4.9
|
)%
|
|
|
|
|
21,148
|
|
|
|
|
23,430
|
|
|
|
(9.7
|
)%
|
|
|
Net inpatient revenue per admission
|
|
|
$
|
13,050
|
|
|
|
$
|
12,360
|
|
|
|
5.6
|
%
|
|
|
|
$
|
13,021
|
|
|
|
$
|
12,460
|
|
|
|
4.5
|
%
|
|
|
Average length of stay (days)
|
|
|
|
4.63
|
|
|
|
|
4.67
|
|
|
|
(0.9
|
)%
|
|
|
|
|
4.66
|
|
|
|
|
4.72
|
|
|
|
(1.3
|
)%
|
|
|
Total surgeries
|
|
|
|
125,347
|
|
|
|
|
123,459
|
|
|
|
1.5
|
%
|
|
|
|
|
244,977
|
|
|
|
|
241,302
|
|
|
|
1.5
|
%
|
|
|
Admissions through emergency department
|
|
|
|
125,468
|
|
|
|
|
121,872
|
|
|
|
3.0
|
%
|
|
|
|
|
255,709
|
|
|
|
|
244,473
|
|
|
|
4.6
|
%
|
|
|
Emergency department visits
|
|
|
|
715,897
|
|
|
|
|
699,423
|
|
|
|
2.4
|
%
|
|
|
|
|
1,429,931
|
|
|
|
|
1,364,425
|
|
|
|
4.8
|
%
|
|
|
Total emergency department admissions and visits
|
|
|
|
841,365
|
|
|
|
|
821,295
|
|
|
|
2.4
|
%
|
|
|
|
|
1,685,640
|
|
|
|
|
1,608,898
|
|
|
|
4.8
|
%
|
|
|
Outpatient visits
|
|
|
|
2,013,926
|
|
|
|
|
1,924,572
|
|
|
|
4.6
|
%
|
|
|
|
|
3,958,900
|
|
|
|
|
3,744,204
|
|
|
|
5.7
|
%
|
|
|
Charity and uninsured outpatient visits
|
|
|
|
155,701
|
|
|
|
|
165,926
|
|
|
|
(6.2
|
)%
|
|
|
|
|
309,115
|
|
|
|
|
328,051
|
|
|
|
(5.8
|
)%
|
|
|
Net outpatient revenue per visit
|
|
|
$
|
714
|
|
|
|
$
|
704
|
|
|
|
1.4
|
%
|
|
|
|
$
|
711
|
|
|
|
$
|
703
|
|
|
|
1.1
|
%
|
|
|
Net patient revenue per adjusted patient admission
|
|
|
$
|
11,778
|
|
|
|
$
|
11,274
|
|
|
|
4.5
|
%
|
|
|
|
$
|
11,794
|
|
|
|
$
|
11,408
|
|
|
|
3.4
|
%
|
|
|
Net patient revenue per adjusted patient day
|
|
|
$
|
2,575
|
|
|
|
$
|
2,441
|
|
|
|
5.5
|
%
|
|
|
|
$
|
2,556
|
|
|
|
$
|
2,441
|
|
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Patient Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare
|
|
|
|
20.6
|
%
|
|
|
|
22.6
|
%
|
|
|
(2.0
|
)%
|
*
|
|
|
|
21.2
|
%
|
|
|
|
22.7
|
%
|
|
|
(1.5
|
)%
|
*
|
|
Medicaid
|
|
|
|
8.5
|
%
|
|
|
|
10.1
|
%
|
|
|
(1.6
|
)%
|
*
|
|
|
|
8.9
|
%
|
|
|
|
9.0
|
%
|
|
|
(0.1
|
)%
|
*
|
|
Managed care
|
|
|
|
61.0
|
%
|
|
|
|
57.9
|
%
|
|
|
3.1
|
%
|
*
|
|
|
|
59.8
|
%
|
|
|
|
57.9
|
%
|
|
|
1.9
|
%
|
*
|
|
Indemnity, self-pay and other
|
|
|
|
9.9
|
%
|
|
|
|
9.4
|
%
|
|
|
0.5
|
%
|
*
|
|
|
|
10.1
|
%
|
|
|
|
10.4
|
%
|
|
|
(0.3
|
)%
|
*
|
|
(1)
|
|
Represents the results of Tenet’s Hospital Operations and other
segment.
|
|
(2)
|
|
The results for 2014 and the quarter ended March 31, 2015 have been
restated to exclude the results of the surgery and imaging centers
that Tenet contributed to the joint venture with United Surgical
Partners International. The results for these surgery and imaging
centers are now reported in Tenet’s Ambulatory Care segment.
|
|
*
|
|
This change is the difference between the 2015 and 2014 amounts shown
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per share amounts)
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
03/31/15
|
|
|
|
|
06/30/15
|
|
|
|
|
06/30/15
|
|
|
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues before provision for doubtful accounts
|
|
|
$
|
4,787
|
|
|
|
$
|
4,844
|
|
|
|
$
|
9,631
|
|
|
Less: Provision for doubtful accounts
|
|
|
|
363
|
|
|
|
|
352
|
|
|
|
|
715
|
|
|
Net operating revenues
|
|
|
|
4,424
|
|
|
|
|
4,492
|
|
|
|
|
8,916
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
4
|
|
|
|
|
16
|
|
|
|
|
20
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
2,125
|
|
|
|
|
2,185
|
|
|
|
|
4,310
|
|
|
Supplies
|
|
|
|
687
|
|
|
|
|
707
|
|
|
|
|
1,394
|
|
|
Other operating expenses, net
|
|
|
|
1,093
|
|
|
|
|
1,081
|
|
|
|
|
2,174
|
|
|
Electronic health record incentives
|
|
|
|
(6
|
)
|
|
|
|
(33
|
)
|
|
|
|
(39
|
)
|
|
Depreciation and amortization
|
|
|
|
207
|
|
|
|
|
197
|
|
|
|
|
404
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
29
|
|
|
|
|
193
|
|
|
|
|
222
|
|
|
Litigation and investigation costs
|
|
|
|
3
|
|
|
|
|
14
|
|
|
|
|
17
|
|
|
Operating income
|
|
|
|
290
|
|
|
|
|
164
|
|
|
|
|
454
|
|
|
Interest expense
|
|
|
|
(199
|
)
|
|
|
|
(217
|
)
|
|
|
|
(416
|
)
|
|
Investment earnings (losses)
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
Net income (loss) from continuing operations, before income taxes
|
|
|
|
91
|
|
|
|
|
(54
|
)
|
|
|
|
37
|
|
|
Income tax benefit (expense)
|
|
|
|
(16
|
)
|
|
|
|
27
|
|
|
|
|
11
|
|
|
Net income (loss) from continuing operations, before discontinued
operations
|
|
|
|
75
|
|
|
|
|
(27
|
)
|
|
|
|
48
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
|
(1
|
)
|
|
|
|
(2
|
)
|
|
|
|
(3
|
)
|
|
Litigation and investigation costs
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
|
3
|
|
|
Income tax benefit (expense)
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
|
|
|
—
|
|
|
Net income (loss) from discontinued operations
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
Net income (loss)
|
|
|
|
76
|
|
|
|
|
(28
|
)
|
|
|
|
48
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
29
|
|
|
|
|
33
|
|
|
|
|
62
|
|
|
Net income (loss) attributable to Tenet Healthcare Corporation
common shareholders
|
|
|
$
|
47
|
|
|
|
$
|
(61
|
)
|
|
|
$
|
(14
|
)
|
|
Amounts attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, net of tax
|
|
|
$
|
46
|
|
|
|
$
|
(60
|
)
|
|
|
$
|
(14
|
)
|
|
Net income (loss) from discontinued operations, net of tax
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
Net income (loss) attributable to Tenet Healthcare Corporation
common shareholders
|
|
|
$
|
47
|
|
|
|
$
|
(61
|
)
|
|
|
$
|
(14
|
)
|
|
Earnings (loss) per share attributable to Tenet Healthcare
Corporation common shareholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.47
|
|
|
|
$
|
(0.60
|
)
|
|
|
$
|
(0.14
|
)
|
|
Discontinued operations
|
|
|
|
0.01
|
|
|
|
|
(0.01
|
)
|
|
|
|
—
|
|
|
|
|
|
$
|
0.48
|
|
|
|
$
|
(0.61
|
)
|
|
|
$
|
(0.14
|
)
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.46
|
|
|
|
$
|
(0.60
|
)
|
|
|
$
|
(0.14
|
)
|
|
Discontinued operations
|
|
|
|
0.01
|
|
|
|
|
(0.01
|
)
|
|
|
|
—
|
|
|
|
|
|
$
|
0.47
|
|
|
|
$
|
(0.61
|
)
|
|
|
$
|
(0.14
|
)
|
|
Weighted average shares and dilutive securities outstanding (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
98,699
|
|
|
|
|
99,244
|
|
|
|
|
98,972
|
|
|
Diluted
|
|
|
|
100,872
|
|
|
|
|
99,244
|
|
|
|
|
98,972
|
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS((1))
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per patient day,
|
|
|
|
|
|
|
|
|
|
|
per admission and per visit amounts)
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
03/31/15(2)
|
|
|
06/30/15
|
|
|
06/30/15
|
|
|
|
|
|
|
|
|
|
|
|
|
Net inpatient revenues
|
|
|
$
|
2,690
|
|
|
|
$
|
2,623
|
|
|
|
$
|
5,313
|
|
|
Net outpatient revenues
|
|
|
$
|
1,412
|
|
|
|
$
|
1,484
|
|
|
|
$
|
2,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of acute care hospitals (at end of period)
|
|
|
|
80
|
|
|
|
|
80
|
|
|
|
|
80
|
|
|
Licensed beds (at end of period)
|
|
|
|
20,826
|
|
|
|
|
20,826
|
|
|
|
|
20,826
|
|
|
Average licensed beds
|
|
|
|
20,823
|
|
|
|
|
20,826
|
|
|
|
|
20,823
|
|
|
Utilization of licensed beds
|
|
|
|
52.1
|
%
|
|
|
|
49.1
|
%
|
|
|
|
50.6
|
%
|
|
Patient days - total
|
|
|
|
975,912
|
|
|
|
|
929,840
|
|
|
|
|
1,905,752
|
|
|
Adjusted patient days
|
|
|
|
1,618,402
|
|
|
|
|
1,589,567
|
|
|
|
|
3,207,969
|
|
|
Net inpatient revenue per patient day
|
|
|
$
|
2,755
|
|
|
|
$
|
2,821
|
|
|
|
$
|
2,788
|
|
|
Total admissions
|
|
|
|
208,333
|
|
|
|
|
201,908
|
|
|
|
|
410,241
|
|
|
Adjusted patient admissions
|
|
|
|
349,069
|
|
|
|
|
349,122
|
|
|
|
|
698,191
|
|
|
Charity and uninsured admissions
|
|
|
|
10,950
|
|
|
|
|
10,535
|
|
|
|
|
21,485
|
|
|
Net inpatient revenue per admission
|
|
|
$
|
12,907
|
|
|
|
$
|
12,991
|
|
|
|
$
|
12,951
|
|
|
Average length of stay (days)
|
|
|
|
4.68
|
|
|
|
|
4.61
|
|
|
|
|
4.65
|
|
|
Total surgeries
|
|
|
|
121,403
|
|
|
|
|
127,523
|
|
|
|
|
248,926
|
|
|
Admissions through emergency department
|
|
|
|
133,544
|
|
|
|
|
128,570
|
|
|
|
|
262,114
|
|
|
Emergency department visits
|
|
|
|
741,533
|
|
|
|
|
742,951
|
|
|
|
|
1,484,484
|
|
|
Total emergency department admissions and visits
|
|
|
|
875,077
|
|
|
|
|
871,521
|
|
|
|
|
1,746,598
|
|
|
Outpatient visits
|
|
|
|
1,994,573
|
|
|
|
|
2,063,037
|
|
|
|
|
4,057,610
|
|
|
Charity and uninsured outpatient visits
|
|
|
|
157,197
|
|
|
|
|
159,634
|
|
|
|
|
316,831
|
|
|
Net outpatient revenue per visit
|
|
|
$
|
708
|
|
|
|
$
|
719
|
|
|
|
$
|
714
|
|
|
Net patient revenue per adjusted patient admission
|
|
|
$
|
11,748
|
|
|
|
$
|
11,764
|
|
|
|
$
|
11,758
|
|
|
Net patient revenue per adjusted patient day
|
|
|
$
|
2,534
|
|
|
|
$
|
2,584
|
|
|
|
$
|
2,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Patient Revenues from:
|
|
|
|
|
|
|
|
|
|
|
Medicare
|
|
|
|
21.9
|
%
|
.
|
|
|
20.7
|
%
|
|
|
|
21.3
|
%
|
|
Medicaid
|
|
|
|
9.4
|
%
|
|
|
|
8.5
|
%
|
|
|
|
9.0
|
%
|
|
Managed care
|
|
|
|
58.6
|
%
|
|
|
|
60.8
|
%
|
|
|
|
59.9
|
%
|
|
Indemnity, self-pay and other
|
|
|
|
10.2
|
%
|
|
|
|
10.0
|
%
|
|
|
|
9.8
|
%
|
|
(1)
|
|
Represents the results of Tenet’s Hospital Operations and other
segment.
|
|
(2)
|
|
The results for the quarter ended March 31, 2015 have been restated
to exclude the results of the surgery and imaging centers that Tenet
contributed to the joint venture with United Surgical Partners
International. The results for these surgery and imaging centers are
now reported in Tenet’s Ambulatory Care segment.
|
|
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1)
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per patient day,
|
|
|
|
|
|
|
|
|
|
|
per admission and per visit amounts)
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
03/31/15(2)
|
|
|
06/30/15
|
|
|
06/30/15
|
|
|
|
|
|
|
|
|
|
|
|
|
Net inpatient revenues
|
|
|
$
|
2,648
|
|
|
|
$
|
2,576
|
|
|
|
$
|
5,224
|
|
|
Net outpatient revenues
|
|
|
$
|
1,377
|
|
|
|
$
|
1,438
|
|
|
|
$
|
2,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of acute care hospitals (at end of period)
|
|
|
|
77
|
|
|
|
|
77
|
|
|
|
|
77
|
|
|
Licensed beds (at end of period)
|
|
|
|
20,419
|
|
|
|
|
20,419
|
|
|
|
|
20,419
|
|
|
Average licensed beds
|
|
|
|
20,416
|
|
|
|
|
20,419
|
|
|
|
|
20,416
|
|
|
Utilization of licensed beds
|
|
|
|
52.2
|
%
|
|
|
|
49.1
|
%
|
|
|
|
50.6
|
%
|
|
Patient days - total
|
|
|
|
958,365
|
|
|
|
|
913,127
|
|
|
|
|
1,871,492
|
|
|
Adjusted patient days
|
|
|
|
1,586,490
|
|
|
|
|
1,558,637
|
|
|
|
|
3,145,127
|
|
|
Net inpatient revenue per patient day
|
|
|
$
|
2,763
|
|
|
|
$
|
2,821
|
|
|
|
$
|
2,791
|
|
|
Total admissions
|
|
|
|
203,815
|
|
|
|
|
197,390
|
|
|
|
|
401,205
|
|
|
Adjusted patient admissions
|
|
|
|
340,835
|
|
|
|
|
340,791
|
|
|
|
|
681,626
|
|
|
Charity and uninsured admissions
|
|
|
|
10,787
|
|
|
|
|
10,361
|
|
|
|
|
21,148
|
|
|
Net inpatient revenue per admission
|
|
|
$
|
12,992
|
|
|
|
$
|
13,050
|
|
|
|
$
|
13,021
|
|
|
Average length of stay (days)
|
|
|
|
4.70
|
|
|
|
|
4.63
|
|
|
|
|
4.66
|
|
|
Total surgeries
|
|
|
|
119,630
|
|
|
|
|
125,347
|
|
|
|
|
244,977
|
|
|
Admissions through emergency department
|
|
|
|
130,241
|
|
|
|
|
125,468
|
|
|
|
|
255,709
|
|
|
Emergency department visits
|
|
|
|
714,034
|
|
|
|
|
715,897
|
|
|
|
|
1,429,931
|
|
|
Total emergency department admissions and visits
|
|
|
|
844,275
|
|
|
|
|
841,365
|
|
|
|
|
1,685,640
|
|
|
Outpatient visits
|
|
|
|
1,944,974
|
|
|
|
|
2,013,926
|
|
|
|
|
3,958,900
|
|
|
Charity and uninsured outpatient visits
|
|
|
|
153,414
|
|
|
|
|
155,701
|
|
|
|
|
309,115
|
|
|
Net outpatient revenue per visit
|
|
|
$
|
708
|
|
|
|
$
|
714
|
|
|
|
$
|
711
|
|
|
Net patient revenue per adjusted patient admission
|
|
|
$
|
11,809
|
|
|
|
$
|
11,778
|
|
|
|
$
|
11,794
|
|
|
Net patient revenue per adjusted patient day
|
|
|
$
|
2,537
|
|
|
|
$
|
2,575
|
|
|
|
$
|
2,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Patient Revenues from:
|
|
|
|
|
|
|
|
|
|
|
Medicare
|
|
|
|
21.8
|
%
|
|
|
|
20.6
|
%
|
|
|
|
21.2
|
%
|
|
Medicaid
|
|
|
|
9.4
|
%
|
|
|
|
8.5
|
%
|
|
|
|
8.9
|
%
|
|
Managed care
|
|
|
|
58.7
|
%
|
|
|
|
61.0
|
%
|
|
|
|
59.8
|
%
|
|
Indemnity, self-pay and other
|
|
|
|
10.1
|
%
|
|
|
|
9.9
|
%
|
|
|
|
10.1
|
%
|
|
(1)
|
|
Represents the results of Tenet’s Hospital Operations and other
segment.
|
|
(2)
|
|
The results for the quarter ended March 31, 2015 have been restated
to exclude the results of the surgery and imaging centers that Tenet
contributed to the joint venture with United Surgical Partners
International. The results for these surgery and imaging centers are
now reported in Tenet’s Ambulatory Care segment.
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1)
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per patient day,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per admission and per visit amounts)
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
|
|
03/31/14
|
|
|
|
|
06/30/14
|
|
|
|
|
9/30/2014
|
|
|
|
|
12/31/2014
|
|
|
|
|
12/31/2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net inpatient revenues
|
|
|
$
|
2,440
|
|
|
|
$
|
2,400
|
|
|
|
$
|
2,418
|
|
|
|
$
|
2,670
|
|
|
|
$
|
9,928
|
|
|
Net outpatient revenues
|
|
|
$
|
1,277
|
|
|
|
$
|
1,355
|
|
|
|
$
|
1,350
|
|
|
|
$
|
1,406
|
|
|
|
$
|
5,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of acute care hospitals (at end of period)
|
|
|
|
77
|
|
|
|
|
77
|
|
|
|
|
77
|
|
|
|
|
77
|
|
|
|
|
77
|
|
|
Licensed beds (at end of period)
|
|
|
|
20,255
|
|
|
|
|
20,355
|
|
|
|
|
20,355
|
|
|
|
|
20,407
|
|
|
|
|
20,407
|
|
|
Average licensed beds
|
|
|
|
20,255
|
|
|
|
|
20,304
|
|
|
|
|
20,355
|
|
|
|
|
20,398
|
|
|
|
|
20,328
|
|
|
Utilization of licensed beds
|
|
|
|
51.0
|
%
|
|
|
|
49.0
|
%
|
|
|
|
48.5
|
%
|
|
|
|
49.1
|
%
|
|
|
|
49.4
|
%
|
|
Patient days - total
|
|
|
|
929,164
|
|
|
|
|
905,839
|
|
|
|
|
908,885
|
|
|
|
|
921,926
|
|
|
|
|
3,665,814
|
|
|
Adjusted patient days
|
|
|
|
1,523,320
|
|
|
|
|
1,538,038
|
|
|
|
|
1,538,618
|
|
|
|
|
1,549,184
|
|
|
|
|
6,149,160
|
|
|
Net inpatient revenue per patient day
|
|
|
$
|
2,626
|
|
|
|
$
|
2,649
|
|
|
|
$
|
2,660
|
|
|
|
$
|
2,896
|
|
|
|
$
|
2,708
|
|
|
Total admissions
|
|
|
|
194,273
|
|
|
|
|
194,167
|
|
|
|
|
196,609
|
|
|
|
|
198,219
|
|
|
|
|
783,268
|
|
|
Adjusted patient admissions
|
|
|
|
321,915
|
|
|
|
|
333,073
|
|
|
|
|
336,848
|
|
|
|
|
337,170
|
|
|
|
|
1,329,006
|
|
|
Charity and uninsured admissions
|
|
|
|
12,530
|
|
|
|
|
10,900
|
|
|
|
|
10,774
|
|
|
|
|
11,080
|
|
|
|
|
45,284
|
|
|
Net inpatient revenue per admission
|
|
|
$
|
12,560
|
|
|
|
$
|
12,360
|
|
|
|
$
|
12,299
|
|
|
|
$
|
13,470
|
|
|
|
$
|
12,675
|
|
|
Average length of stay (days)
|
|
|
|
4.78
|
|
|
|
|
4.67
|
|
|
|
|
4.62
|
|
|
|
|
4.65
|
|
|
|
|
4.68
|
|
|
Total surgeries
|
|
|
|
117,843
|
|
|
|
|
123,459
|
|
|
|
|
125,179
|
|
|
|
|
126,136
|
|
|
|
|
492,617
|
|
|
Admissions through emergency department
|
|
|
|
122,601
|
|
|
|
|
121,872
|
|
|
|
|
120,933
|
|
|
|
|
124,600
|
|
|
|
|
490,006
|
|
|
Emergency department visits
|
|
|
|
665,002
|
|
|
|
|
699,423
|
|
|
|
|
699,505
|
|
|
|
|
711,351
|
|
|
|
|
2,775,281
|
|
|
Total emergency department admissions and visits
|
|
|
|
787,603
|
|
|
|
|
821,295
|
|
|
|
|
820,438
|
|
|
|
|
835,951
|
|
|
|
|
3,265,287
|
|
|
Outpatient visits
|
|
|
|
1,819,632
|
|
|
|
|
1,924,572
|
|
|
|
|
1,940,024
|
|
|
|
|
1,950,782
|
|
|
|
|
7,635,010
|
|
|
Charity and uninsured outpatient visits
|
|
|
|
162,125
|
|
|
|
|
165,926
|
|
|
|
|
161,808
|
|
|
|
|
161,827
|
|
|
|
|
651,686
|
|
|
Net outpatient revenue per visit
|
|
|
$
|
702
|
|
|
|
$
|
704
|
|
|
|
$
|
696
|
|
|
|
$
|
721
|
|
|
|
$
|
706
|
|
|
Net patient revenue per adjusted patient admission
|
|
|
$
|
11,547
|
|
|
|
$
|
11,274
|
|
|
|
$
|
11,186
|
|
|
|
$
|
12,089
|
|
|
|
$
|
11,524
|
|
|
Net patient revenue per adjusted patient day
|
|
|
$
|
2,440
|
|
|
|
$
|
2,441
|
|
|
|
$
|
2,449
|
|
|
|
$
|
2,631
|
|
|
|
$
|
2,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Patient Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare
|
|
|
|
22.7
|
%
|
|
|
|
22.6
|
%
|
|
|
|
21.5
|
%
|
|
|
|
21.0
|
%
|
|
|
|
21.9
|
%
|
|
Medicaid
|
|
|
|
7.8
|
%
|
|
|
|
10.1
|
%
|
|
|
|
8.9
|
%
|
|
|
|
11.2
|
%
|
|
|
|
9.5
|
%
|
|
Managed care
|
|
|
|
57.8
|
%
|
|
|
|
57.9
|
%
|
|
|
|
60.4
|
%
|
|
|
|
57.7
|
%
|
|
|
|
58.5
|
%
|
|
Indemnity, self-pay and other
|
|
|
|
11.7
|
%
|
|
|
|
9.4
|
%
|
|
|
|
9.2
|
%
|
|
|
|
10.1
|
%
|
|
|
|
10.1
|
%
|
|
(1)
|
|
Represents the results of Tenet’s Hospital Operations and other
segment. The results for 2014 have been restated to exclude the
results of the surgery and imaging centers that Tenet contributed to
the joint venture with United Surgical Partners International. The
results for these surgery and imaging centers are now reported in
Tenet’s Ambulatory Care segment.
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
SEGMENT REPORTING
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Operations and other
|
|
|
|
|
|
|
|
|
$
|
16,678
|
|
|
|
$
|
17,008
|
|
|
Conifer
|
|
|
|
|
|
|
|
|
|
1,151
|
|
|
|
|
929
|
|
|
Ambulatory Care
|
|
|
|
|
|
|
|
|
|
4,917
|
|
|
|
|
204
|
|
|
Total
|
|
|
|
|
|
|
|
|
$
|
22,746
|
|
|
|
$
|
18,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
Capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Operations and other
|
|
|
$
|
166
|
|
|
|
$
|
235
|
|
|
|
$
|
341
|
|
|
|
$
|
506
|
|
|
Conifer
|
|
|
|
6
|
|
|
|
|
5
|
|
|
|
|
11
|
|
|
|
|
13
|
|
|
Ambulatory Care
|
|
|
|
3
|
|
|
|
|
2
|
|
|
|
|
7
|
|
|
|
|
4
|
|
|
Total
|
|
|
$
|
175
|
|
|
|
$
|
242
|
|
|
|
$
|
359
|
|
|
|
$
|
523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Operations and other
|
|
|
$
|
4,175
|
|
|
|
$
|
3,811
|
|
|
|
$
|
8,326
|
|
|
|
$
|
7,523
|
|
|
Conifer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tenet
|
|
|
|
165
|
|
|
|
|
138
|
|
|
|
|
325
|
|
|
|
|
278
|
|
|
Other customers
|
|
|
|
175
|
|
|
|
|
147
|
|
|
|
|
357
|
|
|
|
|
292
|
|
|
Total Conifer revenues
|
|
|
|
340
|
|
|
|
|
285
|
|
|
|
|
682
|
|
|
|
|
570
|
|
|
Ambulatory Care
|
|
|
|
142
|
|
|
|
|
80
|
|
|
|
|
233
|
|
|
|
|
148
|
|
|
Intercompany eliminations
|
|
|
|
(165
|
)
|
|
|
|
(138
|
)
|
|
|
|
(325
|
)
|
|
|
|
(278
|
)
|
|
Total
|
|
|
$
|
4,492
|
|
|
|
$
|
4,038
|
|
|
|
$
|
8,916
|
|
|
|
$
|
7,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Operations and other
|
|
|
$
|
459
|
|
|
|
$
|
390
|
|
|
|
$
|
877
|
|
|
|
$
|
711
|
|
|
Conifer
|
|
|
|
60
|
|
|
|
|
44
|
|
|
|
|
142
|
|
|
|
|
92
|
|
|
Ambulatory Care
|
|
|
|
49
|
|
|
|
|
26
|
|
|
|
|
78
|
|
|
|
|
44
|
|
|
Total
|
|
|
$
|
568
|
|
|
|
$
|
460
|
|
|
|
$
|
1,097
|
|
|
|
$
|
847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Operations and other
|
|
|
$
|
178
|
|
|
|
$
|
200
|
|
|
|
$
|
369
|
|
|
|
$
|
385
|
|
|
Conifer
|
|
|
|
12
|
|
|
|
|
5
|
|
|
|
|
24
|
|
|
|
|
10
|
|
|
Ambulatory Care
|
|
|
|
7
|
|
|
|
|
4
|
|
|
|
|
11
|
|
|
|
|
7
|
|
|
Total
|
|
|
$
|
197
|
|
|
|
$
|
209
|
|
|
|
$
|
404
|
|
|
|
$
|
402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
568
|
|
|
|
$
|
460
|
|
|
|
$
|
1,097
|
|
|
|
$
|
847
|
|
|
Depreciation and amortization
|
|
|
|
(197
|
)
|
|
|
|
(209
|
)
|
|
|
|
(404
|
)
|
|
|
|
(402
|
)
|
|
Impairments and restructuring charges, and acquisition-related costs
|
|
|
|
(193
|
)
|
|
|
|
(32
|
)
|
|
|
|
(222
|
)
|
|
|
|
(53
|
)
|
|
Litigation and investigation costs
|
|
|
|
(14
|
)
|
|
|
|
(12
|
)
|
|
|
|
(17
|
)
|
|
|
|
(15
|
)
|
|
Interest expense
|
|
|
|
(217
|
)
|
|
|
|
(190
|
)
|
|
|
|
(416
|
)
|
|
|
|
(372
|
)
|
|
Investment Expense
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
(54
|
)
|
|
|
$
|
17
|
|
|
|
$
|
37
|
|
|
|
$
|
5
|
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
STATEMENT OF OPERATIONS – AMBULATORY CARE SEGMENT
|
|
INCLUDING PRO FORMA USPI AND ASPEN FOR ALL PERIODS
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Ambulatory
Care as
Reported
Under
GAAP
|
|
|
Unconsolidated
Affiliates
|
|
|
Ambulatory
Care as
Reported
Under
GAAP
|
|
|
Unconsolidated
Affiliates
|
|
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues before provision for doubtful accounts
|
|
|
$
|
327
|
|
|
|
$
|
534
|
|
|
|
$
|
290
|
|
|
|
$
|
469
|
|
|
Less: Provision for doubtful accounts
|
|
|
|
(5
|
)
|
|
|
|
(14
|
)
|
|
|
|
(4
|
)
|
|
|
|
(11
|
)
|
|
Net operating revenues(1)
|
|
|
|
322
|
|
|
|
|
520
|
|
|
|
|
286
|
|
|
|
|
458
|
|
|
Equity in earnings of unconsolidated affiliates(2)
|
|
|
|
28
|
|
|
|
|
—
|
|
|
|
|
28
|
|
|
|
|
—
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
104
|
|
|
|
|
127
|
|
|
|
|
91
|
|
|
|
|
110
|
|
|
Supplies
|
|
|
|
59
|
|
|
|
|
133
|
|
|
|
|
49
|
|
|
|
|
113
|
|
|
Other operating expenses, net
|
|
|
|
72
|
|
|
|
|
112
|
|
|
|
|
64
|
|
|
|
|
97
|
|
|
Depreciation and amortization
|
|
|
|
16
|
|
|
|
|
20
|
|
|
|
|
15
|
|
|
|
|
18
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
—
|
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
|
(4
|
)
|
|
Operating income
|
|
|
|
99
|
|
|
|
|
125
|
|
|
|
|
95
|
|
|
|
|
124
|
|
|
Interest expense
|
|
|
|
(34
|
)
|
|
|
|
(7
|
)
|
|
|
|
(30
|
)
|
|
|
|
(7
|
)
|
|
Net income from continuing operations, before income taxes
|
|
|
|
65
|
|
|
|
|
118
|
|
|
|
|
65
|
|
|
|
|
117
|
|
|
Income tax benefit (expense)
|
|
|
|
(13
|
)
|
|
|
|
(1
|
)
|
|
|
|
(13
|
)
|
|
|
|
(1
|
)
|
|
Net income
|
|
|
|
52
|
|
|
|
$
|
117
|
|
|
|
|
52
|
|
|
|
$
|
116
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
41
|
|
|
|
|
|
|
|
39
|
|
|
|
|
|
Net income attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
11
|
|
|
|
|
|
|
$
|
13
|
|
|
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
|
|
$
|
28
|
|
|
|
|
|
|
$
|
28
|
|
|
(1)
|
|
On a pro forma same-facility system-wide basis, net revenue in
Tenet’s Ambulatory Care segment increased 6.9% during the three
months ended June 30, 2015, with cases increasing 6.8% and revenue
per case increasing 0.1%.
|
|
(2)
|
|
At June 30, 2015, 155 of the 296 facilities in the Company’s newly
formed Ambulatory segment were not consolidated based on the nature
of the segment’s joint venture relationships with physicians and
prominent healthcare systems. Although revenues of the segment’s
unconsolidated facilities are not recorded as revenues by the
Company, equity in earnings of unconsolidated affiliates is
nonetheless a significant portion of the Company’s overall earnings.
To help analyze results of operations, management also uses
system-wide operating measures such as system-wide revenue growth,
which includes revenues of both consolidated and unconsolidated
facilities. We control our remaining 141 facilities and account for
these investments as consolidated subsidiaries.
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
STATEMENT OF OPERATIONS – AMBULATORY CARE SEGMENT
|
|
INCLUDING PRO FORMA USPI AND ASPEN FOR ALL PERIODS
|
|
(Unaudited)
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
Ambulatory
Care as
Reported
Under
GAAP
|
|
|
Unconsolidated
Affiliates
|
|
|
Ambulatory
Care as
Reported
Under
GAAP
|
|
|
Unconsolidated
Affiliates
|
|
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues before provision for doubtful accounts
|
|
|
$
|
627
|
|
|
|
$
|
1,020
|
|
|
|
$
|
552
|
|
|
|
$
|
887
|
|
|
Less: Provision for doubtful accounts
|
|
|
|
(10
|
)
|
|
|
|
(26
|
)
|
|
|
|
(7
|
)
|
|
|
|
(22
|
)
|
|
Net operating revenues(1)
|
|
|
|
617
|
|
|
|
|
994
|
|
|
|
|
545
|
|
|
|
|
865
|
|
|
Equity in earnings of unconsolidated affiliates(2)
|
|
|
|
49
|
|
|
|
|
—
|
|
|
|
|
46
|
|
|
|
|
—
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
202
|
|
|
|
|
247
|
|
|
|
|
178
|
|
|
|
|
216
|
|
|
Supplies
|
|
|
|
110
|
|
|
|
|
256
|
|
|
|
|
95
|
|
|
|
|
217
|
|
|
Other operating expenses, net
|
|
|
|
145
|
|
|
|
|
220
|
|
|
|
|
129
|
|
|
|
|
189
|
|
|
Depreciation and amortization
|
|
|
|
29
|
|
|
|
|
40
|
|
|
|
|
28
|
|
|
|
|
37
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
—
|
|
|
|
|
3
|
|
|
|
|
1
|
|
|
|
|
(6
|
)
|
|
Operating income
|
|
|
|
180
|
|
|
|
|
228
|
|
|
|
|
160
|
|
|
|
|
212
|
|
|
Interest expense
|
|
|
|
(68
|
)
|
|
|
|
(14
|
)
|
|
|
|
(60
|
)
|
|
|
|
(14
|
)
|
|
Other
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1
|
|
|
Net income from continuing operations, before income taxes
|
|
|
|
112
|
|
|
|
|
214
|
|
|
|
|
100
|
|
|
|
|
199
|
|
|
Income tax expense
|
|
|
|
(22
|
)
|
|
|
|
(3
|
)
|
|
|
|
(19
|
)
|
|
|
|
(4
|
)
|
|
Net Income
|
|
|
|
90
|
|
|
|
$
|
211
|
|
|
|
|
81
|
|
|
|
$
|
195
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
75
|
|
|
|
|
|
|
|
63
|
|
|
|
|
|
Net income attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
15
|
|
|
|
|
|
|
|
18
|
|
|
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
|
|
$
|
49
|
|
|
|
|
|
|
$
|
46
|
|
|
(1)
|
|
On a pro forma same-facility system-wide basis, net revenue in
Tenet’s Ambulatory Care segment increased 8.2% during the six
months ended June 30, 2015, with cases increasing 7.3% and revenue
per case increasing 0.8%.
|
|
(2)
|
|
At June 30, 2015, 155 of the 296 facilities in the Company’s newly
formed Ambulatory segment were not consolidated based on the nature
of the segment’s joint venture relationships with physicians and
prominent healthcare systems. Although revenues of the segment’s
unconsolidated facilities are not recorded as revenues by the
Company, equity in earnings of unconsolidated affiliates is
nonetheless a significant portion of the Company’s overall earnings.
To help analyze results of operations, management also uses
system-wide operating measures such as system-wide revenue growth,
which includes revenues of both consolidated and unconsolidated
facilities. We control our remaining 141 facilities and account for
these investments as consolidated subsidiaries.
|
|
|
|
|
|
|
|
|
(1) Reconciliation of Adjusted EBITDA
Adjusted EBITDA, a non-GAAP term, is defined by the Company as net
income (loss) attributable to Tenet Healthcare Corporation common
shareholders before (1) the cumulative effect of changes in accounting
principle, net of tax; (2) net loss (income) attributable to
noncontrolling interests; (3) preferred stock dividends; (4) income
(loss) from discontinued operations, net of tax; (5) income tax benefit
(expense); (6) investment earnings (loss); (7) gain (loss) from early
extinguishment of debt; (8) net gain (loss) on sales of investments; (9)
interest expense; (10) litigation and investigation benefit (costs), net
of insurance recoveries; (11) hurricane insurance recoveries, net of
costs; (12) impairment and restructuring charges and acquisition-related
costs; and (13) depreciation and amortization. The Company’s Adjusted
EBITDA may not be comparable to EBITDA reported by other companies.
The Company provides this information as a supplement to GAAP
information to assist itself and investors in understanding the impact
of various items on its financial statements, some of which are
recurring or involve cash payments. The Company uses this information in
its analysis of the performance of its business excluding items that it
does not consider as relevant in the performance of its hospitals in
continuing operations. In addition, from time to time we use this
measure to define certain performance targets under our compensation
programs. Adjusted EBITDA is not a measure of liquidity, but is a
measure of operating performance that management uses in its business as
an alternative to net income (loss) attributable to Tenet Healthcare
Corporation common shareholders. Because Adjusted EBITDA excludes many
items that are included in our financial statements, it does not provide
a complete measure of our operating performance. Accordingly, investors
are encouraged to use GAAP measures when evaluating the Company’s
financial performance.
The reconciliation of net income (loss) attributable to Tenet Healthcare
Corporation common shareholders, the most comparable GAAP term, to
Adjusted EBITDA, is set forth in the first table below for the three and
six months ended June 30, 2015 and 2014.
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
Additional Supplemental Non-GAAP disclosures
|
|
Table #1 – Reconciliation of Adjusted EBITDA to Net Loss
Attributable to
|
|
Tenet Healthcare Corporation Common Shares
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
(61
|
)
|
|
|
$
|
(26
|
)
|
|
|
$
|
(14
|
)
|
|
|
$
|
(58
|
)
|
|
Less: Net loss attributable to noncontrolling interests
|
|
|
|
(33
|
)
|
|
|
|
(19
|
)
|
|
|
|
(62
|
)
|
|
|
|
(35
|
)
|
|
Net loss from discontinued operations, net of tax
|
|
|
|
(1
|
)
|
|
|
|
(16
|
)
|
|
|
|
—
|
|
|
|
|
(21
|
)
|
|
Income (loss) from continuing operations
|
|
|
|
(27
|
)
|
|
|
|
9
|
|
|
|
|
48
|
|
|
|
|
(2
|
)
|
|
Income tax benefit (expense)
|
|
|
|
27
|
|
|
|
|
(8
|
)
|
|
|
|
11
|
|
|
|
|
(7
|
)
|
|
Investment expense
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
Interest expense
|
|
|
|
(217
|
)
|
|
|
|
(190
|
)
|
|
|
|
(416
|
)
|
|
|
|
(372
|
)
|
|
Operating income
|
|
|
|
164
|
|
|
|
|
207
|
|
|
|
|
454
|
|
|
|
|
377
|
|
|
Litigation and investigation costs
|
|
|
|
(14
|
)
|
|
|
|
(12
|
)
|
|
|
|
(17
|
)
|
|
|
|
(15
|
)
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
(193
|
)
|
|
|
|
(32
|
)
|
|
|
|
(222
|
)
|
|
|
|
(53
|
)
|
|
Depreciation and amortization
|
|
|
|
(197
|
)
|
|
|
|
(209
|
)
|
|
|
|
(404
|
)
|
|
|
|
(402
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
568
|
|
|
|
$
|
460
|
|
|
|
$
|
1,097
|
|
|
|
$
|
847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues
|
|
|
$
|
4,492
|
|
|
|
$
|
4,038
|
|
|
|
$
|
8,916
|
|
|
|
$
|
7,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA
margin)
|
|
|
|
12.6
|
%
|
|
|
|
11.4
|
%
|
|
|
|
12.3
|
%
|
|
|
|
10.6
|
%
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
Additional Supplemental Non-GAAP disclosures
|
|
Table #2 – Reconciliation of Adjusted Free Cash Flow
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
(Dollars in millions)
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
Net cash provided by operating activities
|
|
|
$
|
410
|
|
|
|
$
|
266
|
|
|
|
$
|
353
|
|
|
|
$
|
247
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for restructuring charges, acquisition-related costs, and
litigation costs and settlements
|
|
|
|
(53
|
)
|
|
|
|
(54
|
)
|
|
|
|
(86
|
)
|
|
|
|
(84
|
)
|
|
Net cash used in operating activities from discontinued operations
|
|
|
|
(4
|
)
|
|
|
|
2
|
|
|
|
|
(8
|
)
|
|
|
|
(12
|
)
|
|
Adjusted net cash provided by (used in) operating activities –
continuing operations
|
|
|
|
467
|
|
|
|
|
318
|
|
|
|
|
447
|
|
|
|
|
343
|
|
|
Purchases of property and equipment – continuing operations
|
|
|
|
(175
|
)
|
|
|
|
(242
|
)
|
|
|
|
(359
|
)
|
|
|
|
(523
|
)
|
|
Adjusted free cash flow – continuing operations
|
|
|
$
|
292
|
|
|
|
$
|
76
|
|
|
|
$
|
88
|
|
|
|
$
|
(180
|
)
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
Additional Supplemental Non-GAAP disclosures
|
|
Table #3 – Reconciliation of Outlook Adjusted EBITDA to
|
|
Outlook Net Income Attributable to Tenet Healthcare Corporation
Common Shareholders
|
|
for the Year Ending December 31, 2015
|
|
(Unaudited)
|
|
|
|
(Dollars in millions)
|
|
|
Q3 2015
|
|
|
2015
|
|
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
|
Net income (loss) attributable to Tenet Healthcare Corporation
common shareholders
|
|
|
$
|
3
|
|
|
|
$
|
50
|
|
|
|
$
|
(14
|
)
|
|
|
$
|
81
|
|
|
Less: Net (income) attributable to noncontrolling interests
|
|
|
|
(55
|
)
|
|
|
|
(65
|
)
|
|
|
|
(190
|
)
|
|
|
|
(210
|
)
|
|
Loss from discontinued operations, net of tax
|
|
|
|
(2
|
)
|
|
|
|
-
|
|
|
|
|
(5
|
)
|
|
|
|
-
|
|
|
Income from continuing operations
|
|
|
|
60
|
|
|
|
$
|
115
|
|
|
|
$
|
181
|
|
|
|
$
|
291
|
|
|
Income tax expense
|
|
|
|
(25
|
)
|
|
|
|
(50
|
)
|
|
|
|
(40
|
)
|
|
|
|
(90
|
)
|
|
Income from continuing operations, before income taxes
|
|
|
|
85
|
|
|
|
$
|
165
|
|
|
|
$
|
221
|
|
|
|
$
|
381
|
|
|
Interest expense, net
|
|
|
|
(245
|
)
|
|
|
|
(235
|
)
|
|
|
|
(900
|
)
|
|
|
|
(880
|
)
|
|
Operating income
|
|
|
|
330
|
|
|
|
$
|
400
|
|
|
|
$
|
1,121
|
|
|
|
$
|
1,261
|
|
|
Impairment and restructuring charges, acquisition-related costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and litigation costs and settlements(a)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(239
|
)
|
|
|
|
(239
|
)
|
|
Depreciation and amortization
|
|
|
|
(220
|
)
|
|
|
|
(200
|
)
|
|
|
|
(865
|
)
|
|
|
|
(825
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
550
|
|
|
|
$
|
600
|
|
|
|
$
|
2,225
|
|
|
|
$
|
2,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues
|
|
|
$
|
4,650
|
|
|
|
$
|
4,850
|
|
|
|
$
|
18,100
|
|
|
|
$
|
18,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA
margin)
|
|
|
|
11.8
|
%
|
|
|
|
12.4
|
%
|
|
|
|
12.3
|
%
|
|
|
|
12.6
|
%
|
|
(a)
|
|
Company does not forecast impairment and restructuring charges,
acquisition-related costs, and litigation costs and settlements
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
Additional Supplemental Non-GAAP disclosures
|
|
Table #4 – Reconciliation of Outlook Adjusted EBITDA to
|
|
Outlook Normalized Income from Continuing Operations
|
|
for the Year Ending December 31, 2015
|
|
(Unaudited)
|
|
|
|
(Dollars in millions)
|
|
|
Q3 2015
|
|
|
2015
|
|
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
|
Adjusted EBITDA
|
|
|
$
|
550
|
|
|
|
$
|
600
|
|
|
|
$
|
2,225
|
|
|
|
$
|
2,325
|
|
|
Depreciation and amortization
|
|
|
|
(220
|
)
|
|
|
|
(200
|
)
|
|
|
|
(865
|
)
|
|
|
|
(825
|
)
|
|
Interest expense, net
|
|
|
|
(245
|
)
|
|
|
|
(235
|
)
|
|
|
|
(900
|
)
|
|
|
|
(880
|
)
|
|
Income (loss) from continuing operations before income taxes
|
|
|
|
85
|
|
|
|
$
|
165
|
|
|
|
$
|
460
|
|
|
|
$
|
620
|
|
|
Income tax (expense) benefit
|
|
|
|
(25
|
)
|
|
|
|
(50
|
)
|
|
|
|
(135
|
)
|
|
|
|
(185
|
)
|
|
Normalized income (loss) from continuing operations
|
|
|
|
60
|
|
|
|
$
|
115
|
|
|
|
$
|
325
|
|
|
|
$
|
435
|
|
|
Net (income) attributable to noncontrolling interests
|
|
|
|
(55
|
)
|
|
|
|
(65
|
)
|
|
|
|
(190
|
)
|
|
|
|
(210
|
)
|
|
Net income (loss) attributable to common shareholders
|
|
|
$
|
5
|
|
|
|
$
|
50
|
|
|
|
$
|
135
|
|
|
|
$
|
225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully diluted weighted average shares outstanding (in millions)
|
|
|
|
102
|
|
|
|
|
102
|
|
|
|
|
102
|
|
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized fully diluted earnings per share – continuing
operations
|
|
|
$
|
0.05
|
|
|
|
$
|
0.49
|
|
|
|
$
|
1.32
|
|
|
|
$
|
2.21
|
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
Additional Supplemental Non-GAAP disclosures
|
|
Table #5 – Reconciliation of Outlook Adjusted Free Cash Flow
|
|
for the Year Ending December 31, 2015
|
|
|
|
(Dollars in millions)
|
|
|
2015
|
|
|
|
|
Low
|
|
High
|
|
Net cash provided by operating activities
|
|
|
$
|
1,119
|
|
$
|
1,229
|
|
Less:
|
|
|
|
|
|
|
Payments for restructuring charges, acquisition-related costs and
litigation costs and settlements(a)
|
|
|
|
(86)
|
|
|
(86)
|
|
Net cash used in operating activities from discontinued operations
|
|
|
|
(20)
|
|
|
(10)
|
|
Adjusted net cash provided by operating activities – continuing
operations
|
|
|
$
|
1,225
|
|
$
|
1,325
|
|
Purchases of property and equipment – continuing operations
|
|
|
|
(1,000)
|
|
|
(900)
|
|
Adjusted free cash flow – continuing operations
|
|
|
$
|
225
|
|
$
|
425
|
|
(a)
|
|
Company does not forecast impairment and restructuring charges,
acquisition-related costs, and litigation costs and settlements
|
