DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE:THC) reported Adjusted EBITDA of $566
million for the third quarter of 2015, an increase of $107 million, or
23.3 percent, compared to $459 million in the third quarter of 2014.
“We delivered revenue and EBITDA consistent with our Outlook for the
quarter and generated strong adjusted free cash flow,” said Trevor
Fetter, chairman and chief executive officer. “While we experienced
pressure on lower acuity inpatient hospital admissions, we continued to
drive increases in higher-acuity admissions. Our Conifer Health
Solutions and United Surgical Partners subsidiaries performed well and
achieved results in line with our expectations.”
Mr. Fetter continued, “In light of the recent market volatility combined
with the cash proceeds that we are anticipating from divestitures, our
Board has approved a new $500 million share repurchase authorization. We
regularly review our priorities for capital and believe that a share
repurchase authorization is an appropriate tool to have available to us
at this time. We are confident that our strategies to drive growth in
all three of our business segments will result in long-term value
creation for our shareholders.”
Discussion of Results (Percentage changes in operating metrics
compare Q3’15 to Q3’14 on a same-facility basis unless otherwise noted.)
Tenet experienced a 0.6% decline in same-hospital admissions in the
quarter and drove a 0.7% increase in adjusted admissions. Paying
admissions declined 0.9%. Surgeries performed in our hospital segment
increased 0.8 percent, driven by higher acuity cases, and emergency
department visits increased 1.5 percent. On a pro forma same-facility
system-wide basis, including the results of USPI and Aspen in both the
third quarters of 2015 and 2014, surgical and imaging cases in our
Ambulatory Care segment grew by 6.3 percent.
Uninsured plus charity admissions increased by 381 admissions, or 3.7
percent on a same hospital basis, primarily due to increases in Florida
and Texas. Medicaid admissions decreased by 644 admissions, or 1.2
percent. Same-hospital charity and uninsured outpatient visits increased
by 4,310 visits, or 2.7 percent, and Medicaid outpatient visits
increased by 10,526 visits, or 1.9 percent.
In Tenet’s six Medicaid expansion states, the company continues to
benefit from declines in uninsured and charity admissions and outpatient
visits. In these six states, same-hospital uninsured plus charity
admissions declined by 167 admissions, or 9.2 percent, and Medicaid
admissions increased by 195 admissions, or 0.6 percent. Uninsured plus
charity outpatient visits decreased by 354 visits, or 0.7 percent, and
Medicaid outpatient visits grew by 2,890 visits, or 0.8 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).
Tenet’s same-hospital exchange admissions were 5,134 in the third
quarter of 2015, up 53.4% from the third quarter of 2014. Same-hospital
exchange outpatient visits were 44,684 in the third quarter of 2015, up
52.5% from the third quarter of 2014.
Net operating revenues, after the provision for doubtful accounts, grew
by $517 million, or 12.4 percent, to $4.692 billion compared to net
operating revenues of $4.175 billion in the third quarter of 2014.
Revenue growth was driven by a 0.7 percent increase in same-hospital
adjusted patient admissions, a 5.8 percent increase in same-hospital net
patient revenue per adjusted patient admission, a $36 million increase
in revenue at Conifer from non-Tenet customers as well as growth 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 3.0 percent per adjusted admission in the quarter.
Tenet recorded $7 million in electronic health records incentives in the
third quarter of 2015, a $2 million increase compared to $5 million in
the third 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 the third quarter of 2015 and 5.6 percent in the third
quarter of 2014. Including $932 million and $854 million of charity care
write-offs and uninsured discounts that were offered through Tenet’s
Compact with Uninsured Patients in the third quarters of 2015 and 2014,
respectively, Tenet’s uncompensated care was $1.303 billion and $1.103
billion, respectively, in these periods. As a percentage of adjusted
revenue, uncompensated care represented 21.7 percent of adjusted revenue
in the third quarter of 2015, up from 20.9 percent in the third quarter
of 2014.
Conifer generated $61 million of Adjusted EBITDA in the quarter ended
September 30, 2015, representing a 29.8 percent increase compared to $47
million in the third quarter of 2014. Including revenue from Tenet,
Conifer’s revenue increased by $51 million, or 17.2 percent, to $347
million in the third quarter of 2015 compared to $296 million in the
third quarter of 2014.
Tenet generated adjusted net income from continuing operations of $30
million, or $0.29 per diluted share, in the third quarter of 2015. This
excludes $58 million, or $0.57 per share, in after-tax items such as
impairment charges, restructuring charges, acquisition-related costs,
litigation and investigation costs, and the loss from the early
extinguishment of debt. The company generated adjusted net income from
continuing operations of $36 million, or $0.36 per diluted share, in the
third quarter of 2014, excluding the comparable items that totaled $26
million after-tax, or $0.26 per share.
Including the results of both continuing and discontinued operations,
Tenet reported a net loss attributable to common shareholders of $29
million after-tax, or $0.29 per share in the third quarter of 2015,
compared to net income of $9 million after-tax, or $0.09 per share, in
the third quarter of 2014.
Cash and cash equivalents were $450 million at September 30, 2015
compared to $193 million at December 31, 2014. Tenet’s outstanding
borrowings on its credit line were $110 million as of September 30,
2015. Accounts receivable days outstanding were 49.5 at September 30,
2015, compared to 50.7 at June 30, 2015 and 49.5 days at December 31,
2014. Adjusted net cash provided by operating activities in the quarter
ended September 30, 2015 was $563 million; after subtracting $207
million of capital expenditures, Adjusted free cash flow was $356
million. Year to date, Adjusted free cash flow is $444 million.
Share Repurchase Authorization
Tenet’s Board of Directors has authorized a share repurchase program for
up to $500 million of the Company’s outstanding common stock.
Repurchases will be made in accordance with applicable securities laws
and may be made at management’s discretion from time to time in the open
market, through privately negotiated transactions, or otherwise. The
repurchase program will expire on December 31, 2016, and may be
suspended for periods or discontinued at any time. The timing and amount
of repurchase transactions will be based on an evaluation of market
conditions, share purchase prices, the timing of divestiture proceeds
and other factors. The Company does not anticipate the need to raise
additional debt to fund the share repurchase program.
Revised Outlook for 2015
For the full year 2015, Tenet expects to generate net operating revenues
of $18.35 billion to $18.55 billion, Adjusted EBITDA of $2.25 billion to
$2.30 billion, Adjusted free cash flow of $350 million to $500 million,
and Adjusted earnings per share of $1.76 to $2.11. The Outlook includes
approximately $90 million of equity in earnings of unconsolidated
affiliates and $65 million of electronic health record incentives.
The Outlook amounts include the estimated impact of previously announced
acquisitions, divestitures and joint ventures using either the actual
completion date of transactions that have already occurred or estimated
completion dates.
Management’s Webcast Discussion of Third Quarter Results
Tenet management will discuss the Company’s third quarter 2015 results
on a webcast scheduled for 10:00 a.m. ET (9:00 a.m. CT) on November 3,
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
is contained in its Form 10-Q report for the three months ended
September 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 130,000 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 87 general acute care
hospitals, 20 short-stay surgical hospitals and over 440 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.
Tenet also operates six 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. 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 September 30,
|
|
|
|
|
2015
|
|
|
%
|
|
|
2014
|
|
|
%
|
|
|
Change
|
|
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues before provision for doubtful accounts
|
|
|
$
|
5,063
|
|
|
|
|
|
|
$
|
4,424
|
|
|
|
|
|
|
14.4
|
%
|
|
Less: Provision for doubtful accounts
|
|
|
|
371
|
|
|
|
|
|
|
|
249
|
|
|
|
|
|
|
49.0
|
%
|
|
Net operating revenues
|
|
|
|
4,692
|
|
|
|
100.0
|
%
|
|
|
|
4,175
|
|
|
|
100.0
|
%
|
|
|
12.4
|
%
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
28
|
|
|
|
0.6
|
%
|
|
|
|
4
|
|
|
|
0.1
|
%
|
|
|
600.0
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
2,258
|
|
|
|
48.2
|
%
|
|
|
|
2,028
|
|
|
|
48.5
|
%
|
|
|
11.3
|
%
|
|
Supplies
|
|
|
|
752
|
|
|
|
16.0
|
%
|
|
|
|
665
|
|
|
|
15.9
|
%
|
|
|
13.1
|
%
|
|
Other operating expenses, net
|
|
|
|
1,151
|
|
|
|
24.5
|
%
|
|
|
|
1,032
|
|
|
|
24.7
|
%
|
|
|
11.5
|
%
|
|
Electronic health record incentives
|
|
|
|
(7
|
)
|
|
|
(0.1
|
)%
|
|
|
|
(5
|
)
|
|
|
(0.1
|
)%
|
|
|
40.0
|
%
|
|
Depreciation and amortization
|
|
|
|
185
|
|
|
|
3.9
|
%
|
|
|
|
207
|
|
|
|
5.0
|
%
|
|
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
44
|
|
|
|
0.9
|
%
|
|
|
|
37
|
|
|
|
0.9
|
%
|
|
|
|
|
Litigation and investigation costs
|
|
|
|
50
|
|
|
|
1.1
|
%
|
|
|
|
4
|
|
|
|
0.1
|
%
|
|
|
|
|
Operating income
|
|
|
|
287
|
|
|
|
6.1
|
%
|
|
|
|
211
|
|
|
|
5.1
|
%
|
|
|
|
|
Interest expense
|
|
|
|
(248
|
)
|
|
|
|
|
|
|
(186
|
)
|
|
|
|
|
|
|
|
Loss from early extinguishment of debt
|
|
|
|
—
|
|
|
|
|
|
|
|
(24
|
)
|
|
|
|
|
|
|
|
Investment earnings
|
|
|
|
1
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Net income from continuing operations, before income taxes
|
|
|
|
40
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
Income tax benefit (expense)
|
|
|
|
(11
|
)
|
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
Net income from continuing operations, before discontinued
operations
|
|
|
|
29
|
|
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
|
—
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
Net income
|
|
|
|
28
|
|
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
57
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
Net income available (loss attributable) to Tenet Healthcare
Corporation common shareholders
|
|
|
$
|
(29
|
)
|
|
|
|
|
|
$
|
9
|
|
|
|
|
|
|
|
|
Amounts available (attributable) to Tenet Healthcare Corporation
common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, net of tax
|
|
|
$
|
(28
|
)
|
|
|
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations, net of tax
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
Net income available (loss attributable) to Tenet Healthcare
Corporation common shareholders
|
|
|
$
|
(29
|
)
|
|
|
|
|
|
$
|
9
|
|
|
|
|
|
|
|
|
Earnings (loss) per share available (attributable) to Tenet
Healthcare Corporation common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.28
|
)
|
|
|
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.29
|
)
|
|
|
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.28
|
)
|
|
|
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.29
|
)
|
|
|
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
Weighted average shares and dilutive securities outstanding (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
99,537
|
|
|
|
|
|
|
|
98,036
|
|
|
|
|
|
|
|
|
Diluted*
|
|
|
|
99,537
|
|
|
|
|
|
|
|
100,926
|
|
|
|
|
|
|
|
*Had we generated income from continuing operations in the three months
ended September 30, 2015, the effect of employee stock options,
restricted stock units and deferred compensation units on the diluted
shares calculation would have been an increase of 2,500 shares.
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per share amounts)
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2015
|
|
|
%
|
|
|
2014
|
|
|
%
|
|
|
Change
|
|
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues before provision for doubtful accounts
|
|
|
$
|
14,694
|
|
|
|
|
|
|
$
|
13,087
|
|
|
|
|
|
|
12.3
|
%
|
|
Less: Provision for doubtful accounts
|
|
|
|
1,086
|
|
|
|
|
|
|
|
949
|
|
|
|
|
|
|
14.4
|
%
|
|
Net operating revenues
|
|
|
|
13,608
|
|
|
|
100.0
|
%
|
|
|
|
12,138
|
|
|
|
100.0
|
%
|
|
|
12.1
|
%
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
48
|
|
|
|
0.4
|
%
|
|
|
|
9
|
|
|
|
0.1
|
%
|
|
|
433.3
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
6,568
|
|
|
|
48.3
|
%
|
|
|
|
5,905
|
|
|
|
48.6
|
%
|
|
|
11.2
|
%
|
|
Supplies
|
|
|
|
2,146
|
|
|
|
15.8
|
%
|
|
|
|
1,942
|
|
|
|
16.0
|
%
|
|
|
10.5
|
%
|
|
Other operating expenses, net
|
|
|
|
3,325
|
|
|
|
24.4
|
%
|
|
|
|
3,066
|
|
|
|
25.4
|
%
|
|
|
8.4
|
%
|
|
Electronic health record incentives
|
|
|
|
(46
|
)
|
|
|
(0.3
|
)%
|
|
|
|
(72
|
)
|
|
|
(0.6
|
)%
|
|
|
(36.1
|
)%
|
|
Depreciation and amortization
|
|
|
|
589
|
|
|
|
4.3
|
%
|
|
|
|
609
|
|
|
|
5.0
|
%
|
|
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
266
|
|
|
|
2.0
|
%
|
|
|
|
90
|
|
|
|
0.7
|
%
|
|
|
|
|
Litigation and investigation costs
|
|
|
|
67
|
|
|
|
0.5
|
%
|
|
|
|
19
|
|
|
|
0.2
|
%
|
|
|
|
|
Operating income
|
|
|
|
741
|
|
|
|
5.4
|
%
|
|
|
|
588
|
|
|
|
4.8
|
%
|
|
|
|
|
Interest expense
|
|
|
|
(664
|
)
|
|
|
|
|
|
|
(558
|
)
|
|
|
|
|
|
|
|
Loss from early extinguishment of debt
|
|
|
|
—
|
|
|
|
|
|
|
|
(24
|
)
|
|
|
|
|
|
|
|
Net income from continuing operations, before income taxes
|
|
|
|
77
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
|
—
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
Net income from continuing operations, before discontinued
operations
|
|
|
|
77
|
|
|
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
(17
|
)
|
|
|
|
|
|
|
|
Litigation and investigation costs
|
|
|
|
3
|
|
|
|
|
|
|
|
(18
|
)
|
|
|
|
|
|
|
|
Income tax benefit
|
|
|
|
—
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
(22
|
)
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
76
|
|
|
|
|
|
|
|
(5
|
)
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
119
|
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|
|
|
Net loss attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
(43
|
)
|
|
|
|
|
|
$
|
(49
|
)
|
|
|
|
|
|
|
|
Amounts attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations, net of tax
|
|
|
$
|
(42
|
)
|
|
|
|
|
|
$
|
(27
|
)
|
|
|
|
|
|
|
|
Net loss from discontinued operations, net of tax
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
(22
|
)
|
|
|
|
|
|
|
|
Net loss attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
(43
|
)
|
|
|
|
|
|
$
|
(49
|
)
|
|
|
|
|
|
|
|
Net loss per share attributable to Tenet Healthcare Corporation
common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.42
|
)
|
|
|
|
|
|
$
|
(0.27
|
)
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.23
|
)
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.43
|
)
|
|
|
|
|
|
$
|
(0.50
|
)
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.42
|
)
|
|
|
|
|
|
$
|
(0.27
|
)
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.23
|
)
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.43
|
)
|
|
|
|
|
|
$
|
(0.50
|
)
|
|
|
|
|
|
|
|
Weighted average shares and dilutive securities outstanding (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
99,160
|
|
|
|
|
|
|
|
97,625
|
|
|
|
|
|
|
|
|
Diluted*
|
|
|
|
99,160
|
|
|
|
|
|
|
|
97,625
|
|
|
|
|
|
|
|
*Had we generated income from continuing operations in the nine months
ended September 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 2,449 and 2,332
shares, respectively.
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
(Dollars in millions)
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
450
|
|
|
|
$
|
193
|
|
|
Accounts receivable, less allowance for doubtful accounts
|
|
|
|
2,525
|
|
|
|
|
2,404
|
|
|
Inventories of supplies, at cost
|
|
|
|
275
|
|
|
|
|
276
|
|
|
Income tax receivable
|
|
|
|
33
|
|
|
|
|
2
|
|
|
Current portion of deferred income taxes
|
|
|
|
625
|
|
|
|
|
747
|
|
|
Assets held for sale
|
|
|
|
1,186
|
|
|
|
|
2
|
|
|
Other current assets
|
|
|
|
1,202
|
|
|
|
|
1,093
|
|
|
Total current assets
|
|
|
|
6,296
|
|
|
|
|
4,717
|
|
|
Investments and other assets
|
|
|
|
1,029
|
|
|
|
|
384
|
|
|
Deferred income taxes, net of current portion
|
|
|
|
82
|
|
|
|
|
116
|
|
|
Property and equipment, at cost, less accumulated depreciation and
amortization
|
|
|
|
7,330
|
|
|
|
|
7,733
|
|
|
Goodwill
|
|
|
|
6,606
|
|
|
|
|
3,913
|
|
|
Other intangible assets, at cost, less accumulated amortization
|
|
|
|
1,830
|
|
|
|
|
1,278
|
|
|
Total assets
|
|
|
$
|
23,173
|
|
|
|
$
|
18,141
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
$
|
112
|
|
|
|
$
|
112
|
|
|
Accounts payable
|
|
|
|
1,206
|
|
|
|
|
1,179
|
|
|
Accrued compensation and benefits
|
|
|
|
821
|
|
|
|
|
852
|
|
|
Professional and general liability reserves
|
|
|
|
185
|
|
|
|
|
189
|
|
|
Accrued interest payable
|
|
|
|
307
|
|
|
|
|
194
|
|
|
Liabilities held for sale
|
|
|
|
226
|
|
|
|
|
—
|
|
|
Other current liabilities
|
|
|
|
1,236
|
|
|
|
|
1,051
|
|
|
Total current liabilities
|
|
|
|
4,093
|
|
|
|
|
3,577
|
|
|
Long-term debt, net of current portion
|
|
|
|
14,642
|
|
|
|
|
11,695
|
|
|
Professional and general liability reserves
|
|
|
|
566
|
|
|
|
|
492
|
|
|
Defined benefit plan obligations
|
|
|
|
621
|
|
|
|
|
633
|
|
|
Other long-term liabilities
|
|
|
|
551
|
|
|
|
|
558
|
|
|
Total liabilities
|
|
|
|
20,473
|
|
|
|
|
16,955
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests in equity of consolidated
subsidiaries
|
|
|
|
1,682
|
|
|
|
|
401
|
|
|
Equity:
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
7
|
|
|
|
|
7
|
|
|
Additional paid-in capital
|
|
|
|
4,798
|
|
|
|
|
4,614
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(173
|
)
|
|
|
|
(182
|
)
|
|
Accumulated deficit
|
|
|
|
(1,453
|
)
|
|
|
|
(1,410
|
)
|
|
Common stock in treasury, at cost
|
|
|
|
(2,377
|
)
|
|
|
|
(2,378
|
)
|
|
Total shareholders’ equity
|
|
|
|
802
|
|
|
|
|
651
|
|
|
Noncontrolling interests
|
|
|
|
216
|
|
|
|
|
134
|
|
|
Total equity
|
|
|
|
1,018
|
|
|
|
|
785
|
|
|
Total liabilities and equity
|
|
|
$
|
23,173
|
|
|
|
$
|
18,141
|
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
(Unaudited)
|
|
|
|
|
|
|
Nine Months Ended
|
|
(Dollars in millions)
|
|
|
September 30,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
Net income (loss)
|
|
|
$
|
76
|
|
|
|
$
|
(5
|
)
|
|
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
589
|
|
|
|
|
609
|
|
|
Provision for doubtful accounts
|
|
|
|
1,086
|
|
|
|
|
949
|
|
|
Deferred income tax benefit
|
|
|
|
(10
|
)
|
|
|
|
(22
|
)
|
|
Stock-based compensation expense
|
|
|
|
50
|
|
|
|
|
41
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
266
|
|
|
|
|
90
|
|
|
Litigation and investigation costs
|
|
|
|
67
|
|
|
|
|
19
|
|
|
Loss from early extinguishment of debt
|
|
|
|
—
|
|
|
|
|
24
|
|
|
Amortization of debt discount and debt issuance costs
|
|
|
|
32
|
|
|
|
|
21
|
|
|
Pre-tax loss from discontinued operations
|
|
|
|
1
|
|
|
|
|
35
|
|
|
Other items, net
|
|
|
|
(26
|
)
|
|
|
|
(16
|
)
|
|
Changes in cash from operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(1,124
|
)
|
|
|
|
(1,309
|
)
|
|
Inventories and other current assets
|
|
|
|
(62
|
)
|
|
|
|
12
|
|
|
Income taxes
|
|
|
|
(5
|
)
|
|
|
|
(7
|
)
|
|
Accounts payable, accrued expenses and other current liabilities
|
|
|
|
39
|
|
|
|
|
120
|
|
|
Other long-term liabilities
|
|
|
|
31
|
|
|
|
|
38
|
|
|
Payments for restructuring charges, acquisition-related costs,
and litigation costs and settlements
|
|
|
|
(157
|
)
|
|
|
|
(115
|
)
|
|
Net cash used in operating activities from discontinued
operations, excluding income taxes
|
|
|
|
(18
|
)
|
|
|
|
(16
|
)
|
|
Net cash provided by operating activities
|
|
|
|
835
|
|
|
|
|
468
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of property and equipment — continuing operations
|
|
|
|
(566
|
)
|
|
|
|
(734
|
)
|
|
Purchases of businesses or joint venture interests, net of cash
acquired
|
|
|
|
(720
|
)
|
|
|
|
(185
|
)
|
|
Proceeds from sales of facilities and other assets
|
|
|
|
28
|
|
|
|
|
4
|
|
|
Proceeds from sales of marketable securities, long-term investments
and other assets
|
|
|
|
18
|
|
|
|
|
8
|
|
|
Purchases of equity investments
|
|
|
|
(18
|
)
|
|
|
|
(6
|
)
|
|
Other long-term assets
|
|
|
|
(6
|
)
|
|
|
|
(4
|
)
|
|
Other items, net
|
|
|
|
(8
|
)
|
|
|
|
3
|
|
|
Net cash used in investing activities
|
|
|
|
(1,272
|
)
|
|
|
|
(914
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Repayments of borrowings under credit facility
|
|
|
|
(1,880
|
)
|
|
|
|
(1,965
|
)
|
|
Proceeds from borrowings under credit facility
|
|
|
|
1,770
|
|
|
|
|
1,560
|
|
|
Repayments of other borrowings
|
|
|
|
(2,011
|
)
|
|
|
|
(655
|
)
|
|
Proceeds from other borrowings
|
|
|
|
3,208
|
|
|
|
|
1,608
|
|
|
Debt issuance costs
|
|
|
|
(76
|
)
|
|
|
|
(26
|
)
|
|
Distributions paid to noncontrolling interests
|
|
|
|
(65
|
)
|
|
|
|
(30
|
)
|
|
Contributions from noncontrolling interests
|
|
|
|
3
|
|
|
|
|
15
|
|
|
Purchase of noncontrolling interests
|
|
|
|
(254
|
)
|
|
|
|
—
|
|
|
Proceeds from exercise of stock options
|
|
|
|
15
|
|
|
|
|
23
|
|
|
Other items, net
|
|
|
|
(16
|
)
|
|
|
|
3
|
|
|
Net cash provided by financing activities
|
|
|
|
694
|
|
|
|
|
533
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
257
|
|
|
|
|
87
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
193
|
|
|
|
|
113
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
450
|
|
|
|
$
|
200
|
|
|
Supplemental disclosures:
|
|
|
|
|
|
|
|
Interest paid, net of capitalized interest
|
|
|
$
|
(519
|
)
|
|
|
$
|
(487
|
)
|
|
Income tax refunds (payments), net
|
|
|
$
|
(6
|
)
|
|
|
$
|
(5
|
)
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS(1)
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per patient day,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per admission, per adjusted admission
and per visit amounts)
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
2015
|
|
|
2014(2)
|
|
|
Change
|
|
|
|
2015(2)
|
|
|
2014(2)
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net inpatient revenues
|
|
|
$
|
2,603
|
|
|
|
$
|
2,463
|
|
|
|
5.7
|
%
|
|
|
|
$
|
7,916
|
|
|
|
$
|
7,297
|
|
|
|
8.5
|
%
|
|
|
Net outpatient revenues
|
|
|
$
|
1,515
|
|
|
|
$
|
1,358
|
|
|
|
11.6
|
%
|
|
|
|
$
|
4,411
|
|
|
|
$
|
4,001
|
|
|
|
10.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of acute care hospitals (at end of period)
|
|
|
|
83
|
|
|
|
|
80
|
|
|
|
3
|
|
*
|
|
|
|
83
|
|
|
|
|
80
|
|
|
|
3
|
|
*
|
|
Licensed beds (at end of period)
|
|
|
|
21,527
|
|
|
|
|
20,762
|
|
|
|
3.7
|
%
|
|
|
|
|
21,527
|
|
|
|
|
20,762
|
|
|
|
3.7
|
%
|
|
|
Average licensed beds
|
|
|
|
21,122
|
|
|
|
|
20,692
|
|
|
|
2.1
|
%
|
|
|
|
|
20,608
|
|
|
|
|
20,439
|
|
|
|
0.8
|
%
|
|
|
Utilization of licensed beds
|
|
|
|
47.8
|
%
|
|
|
|
48.4
|
%
|
|
|
(0.6
|
)%
|
*
|
|
|
|
50.4
|
%
|
|
|
|
49.4
|
%
|
|
|
1.0
|
%
|
*
|
|
Patient days - total
|
|
|
|
927,964
|
|
|
|
|
921,228
|
|
|
|
0.7
|
%
|
|
|
|
|
2,833,716
|
|
|
|
|
2,757,485
|
|
|
|
2.8
|
%
|
|
|
Adjusted patient days
|
|
|
|
1,601,405
|
|
|
|
|
1,560,784
|
|
|
|
2.6
|
%
|
|
|
|
|
4,809,374
|
|
|
|
|
4,624,395
|
|
|
|
4.0
|
%
|
|
|
Net inpatient revenue per patient day
|
|
|
$
|
2,805
|
|
|
|
$
|
2,674
|
|
|
|
4.9
|
%
|
|
|
|
$
|
2,794
|
|
|
|
$
|
2,646
|
|
|
|
5.6
|
%
|
|
|
Total admissions
|
|
|
|
201,870
|
|
|
|
|
199,914
|
|
|
|
1.0
|
%
|
|
|
|
|
612,111
|
|
|
|
|
588,828
|
|
|
|
4.0
|
%
|
|
|
Adjusted patient admissions
|
|
|
|
352,328
|
|
|
|
|
342,782
|
|
|
|
2.8
|
%
|
|
|
|
|
1,050,519
|
|
|
|
|
998,623
|
|
|
|
5.2
|
%
|
|
|
Charity and uninsured admissions
|
|
|
|
11,322
|
|
|
|
|
10,990
|
|
|
|
3.0
|
%
|
|
|
|
|
32,807
|
|
|
|
|
34,447
|
|
|
|
(4.8
|
)%
|
|
|
Net inpatient revenue per admission
|
|
|
$
|
12,894
|
|
|
|
$
|
12,320
|
|
|
|
4.7
|
%
|
|
|
|
$
|
12,932
|
|
|
|
$
|
12,392
|
|
|
|
4.4
|
%
|
|
|
Average length of stay (days)
|
|
|
|
4.60
|
|
|
|
|
4.61
|
|
|
|
(0.2
|
)%
|
|
|
|
|
4.63
|
|
|
|
|
4.68
|
|
|
|
(1.1
|
)%
|
|
|
Total surgeries
|
|
|
|
129,937
|
|
|
|
|
126,427
|
|
|
|
2.8
|
%
|
|
|
|
|
378,863
|
|
|
|
|
367,930
|
|
|
|
3.0
|
%
|
|
|
Admissions through emergency department
|
|
|
|
126,050
|
|
|
|
|
123,147
|
|
|
|
2.4
|
%
|
|
|
|
|
388,164
|
|
|
|
|
367,834
|
|
|
|
5.5
|
%
|
|
|
Emergency department visits
|
|
|
|
747,993
|
|
|
|
|
719,835
|
|
|
|
3.9
|
%
|
|
|
|
|
2,232,477
|
|
|
|
|
2,086,846
|
|
|
|
7.0
|
%
|
|
|
Total emergency department admissions and visits
|
|
|
|
874,043
|
|
|
|
|
842,982
|
|
|
|
3.7
|
%
|
|
|
|
|
2,620,641
|
|
|
|
|
2,454,680
|
|
|
|
6.8
|
%
|
|
|
Outpatient visits
|
|
|
|
2,076,524
|
|
|
|
|
1,978,420
|
|
|
|
5.0
|
%
|
|
|
|
|
6,134,134
|
|
|
|
|
5,725,649
|
|
|
|
7.1
|
%
|
|
|
Charity and uninsured outpatient visits
|
|
|
|
172,057
|
|
|
|
|
166,709
|
|
|
|
3.2
|
%
|
|
|
|
|
488,888
|
|
|
|
|
495,559
|
|
|
|
(1.3
|
)%
|
|
|
Net outpatient revenue per visit
|
|
|
$
|
730
|
|
|
|
$
|
686
|
|
|
|
6.4
|
%
|
|
|
|
$
|
719
|
|
|
|
$
|
699
|
|
|
|
2.9
|
%
|
|
|
Net patient revenue per adjusted patient admission
|
|
|
$
|
11,688
|
|
|
|
$
|
11,147
|
|
|
|
4.9
|
%
|
|
|
|
$
|
11,734
|
|
|
|
$
|
11,314
|
|
|
|
3.7
|
%
|
|
|
Net patient revenue per adjusted patient day
|
|
|
$
|
2,571
|
|
|
|
$
|
2,448
|
|
|
|
5.0
|
%
|
|
|
|
$
|
2,563
|
|
|
|
$
|
2,443
|
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Patient Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare
|
|
|
|
19.8
|
%
|
|
|
|
21.6
|
%
|
|
|
(1.8
|
)%
|
*
|
|
|
|
20.8
|
%
|
|
|
|
22.3
|
%
|
|
|
(1.5
|
)%
|
*
|
|
Medicaid
|
|
|
|
8.8
|
%
|
|
|
|
8.9
|
%
|
|
|
(0.1
|
)%
|
*
|
|
|
|
8.9
|
%
|
|
|
|
8.9
|
%
|
|
|
—
|
%
|
*
|
|
Managed care
|
|
|
|
61.1
|
%
|
|
|
|
60.4
|
%
|
|
|
0.7
|
%
|
*
|
|
|
|
60.2
|
%
|
|
|
|
58.8
|
%
|
|
|
1.4
|
%
|
*
|
|
Indemnity, self-pay and other
|
|
|
|
10.3
|
%
|
|
|
|
9.1
|
%
|
|
|
1.2
|
%
|
*
|
|
|
|
10.1
|
%
|
|
|
|
10.0
|
%
|
|
|
0.1
|
%
|
*
|
|
(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, per adjusted admission
and per visit amounts)
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
2015
|
|
|
2014(2)
|
|
|
Change
|
|
|
|
2015(2)
|
|
|
2014(2)
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net inpatient revenues
|
|
|
$
|
2,472
|
|
|
|
$
|
2,337
|
|
|
|
5.8
|
%
|
|
|
|
$
|
7,533
|
|
|
|
$
|
7,031
|
|
|
|
7.1
|
%
|
|
|
Net outpatient revenues
|
|
|
$
|
1,427
|
|
|
|
$
|
1,323
|
|
|
|
7.9
|
%
|
|
|
|
$
|
4,183
|
|
|
|
$
|
3,902
|
|
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of acute care hospitals (at end of period)
|
|
|
|
76
|
|
|
|
|
76
|
|
|
|
—
|
|
*
|
|
|
|
76
|
|
|
|
|
76
|
|
|
|
—
|
|
*
|
|
Licensed beds (at end of period)
|
|
|
|
20,020
|
|
|
|
|
19,999
|
|
|
|
0.1
|
%
|
|
|
|
|
20,020
|
|
|
|
|
19,999
|
|
|
|
0.1
|
%
|
|
|
Average licensed beds
|
|
|
|
20,052
|
|
|
|
|
19,999
|
|
|
|
0.3
|
%
|
|
|
|
|
20,059
|
|
|
|
|
19,949
|
|
|
|
0.6
|
%
|
|
|
Utilization of licensed beds
|
|
|
|
47.4
|
%
|
|
|
|
48.1
|
%
|
|
|
(0.7
|
)%
|
*
|
|
|
|
49.3
|
%
|
|
|
|
49.1
|
%
|
|
|
0.2
|
%
|
*
|
|
Patient days - total
|
|
|
|
874,456
|
|
|
|
|
884,748
|
|
|
|
(1.2
|
)%
|
|
|
|
|
2,697,929
|
|
|
|
|
2,673,921
|
|
|
|
0.9
|
%
|
|
|
Adjusted patient days
|
|
|
|
1,503,639
|
|
|
|
|
1,501,624
|
|
|
|
0.1
|
%
|
|
|
|
|
4,574,587
|
|
|
|
|
4,493,843
|
|
|
|
1.8
|
%
|
|
|
Net inpatient revenue per patient day
|
|
|
$
|
2,827
|
|
|
|
$
|
2,641
|
|
|
|
7.0
|
%
|
|
|
|
$
|
2,792
|
|
|
|
$
|
2,629
|
|
|
|
6.2
|
%
|
|
|
Total admissions
|
|
|
|
191,054
|
|
|
|
|
192,283
|
|
|
|
(0.6
|
)%
|
|
|
|
|
583,838
|
|
|
|
|
572,702
|
|
|
|
1.9
|
%
|
|
|
Adjusted patient admissions
|
|
|
|
332,498
|
|
|
|
|
330,219
|
|
|
|
0.7
|
%
|
|
|
|
|
1,001,115
|
|
|
|
|
973,107
|
|
|
|
2.9
|
%
|
|
|
Charity and uninsured admissions
|
|
|
|
10,701
|
|
|
|
|
10,320
|
|
|
|
3.7
|
%
|
|
|
|
|
30,939
|
|
|
|
|
32,924
|
|
|
|
(6.0
|
)%
|
|
|
Net inpatient revenue per admission
|
|
|
$
|
12,939
|
|
|
|
$
|
12,154
|
|
|
|
6.5
|
%
|
|
|
|
$
|
12,903
|
|
|
|
$
|
12,277
|
|
|
|
5.1
|
%
|
|
|
Average length of stay (days)
|
|
|
|
4.58
|
|
|
|
|
4.60
|
|
|
|
(0.4
|
)%
|
|
|
|
|
4.62
|
|
|
|
|
4.67
|
|
|
|
(1.1
|
)%
|
|
|
Total surgeries
|
|
|
|
123,765
|
|
|
|
|
122,821
|
|
|
|
0.8
|
%
|
|
|
|
|
364,192
|
|
|
|
|
360,024
|
|
|
|
1.2
|
%
|
|
|
Admissions through emergency department
|
|
|
|
119,264
|
|
|
|
|
118,287
|
|
|
|
0.8
|
%
|
|
|
|
|
369,587
|
|
|
|
|
357,728
|
|
|
|
3.3
|
%
|
|
|
Emergency department visits
|
|
|
|
702,248
|
|
|
|
|
690,765
|
|
|
|
1.7
|
%
|
|
|
|
|
2,116,106
|
|
|
|
|
2,038,721
|
|
|
|
3.8
|
%
|
|
|
Total emergency department admissions and visits
|
|
|
|
821,512
|
|
|
|
|
809,052
|
|
|
|
1.5
|
%
|
|
|
|
|
2,485,693
|
|
|
|
|
2,396,449
|
|
|
|
3.7
|
%
|
|
|
Outpatient visits
|
|
|
|
1,963,166
|
|
|
|
|
1,905,255
|
|
|
|
3.0
|
%
|
|
|
|
|
5,856,842
|
|
|
|
|
5,585,216
|
|
|
|
4.9
|
%
|
|
|
Charity and uninsured outpatient visits
|
|
|
|
162,441
|
|
|
|
|
158,131
|
|
|
|
2.7
|
%
|
|
|
|
|
465,210
|
|
|
|
|
478,639
|
|
|
|
(2.8
|
)%
|
|
|
Net outpatient revenue per visit
|
|
|
$
|
727
|
|
|
|
$
|
694
|
|
|
|
4.8
|
%
|
|
|
|
$
|
714
|
|
|
|
$
|
699
|
|
|
|
2.1
|
%
|
|
|
Net patient revenue per adjusted patient admission
|
|
|
$
|
11,726
|
|
|
|
$
|
11,084
|
|
|
|
5.8
|
%
|
|
|
|
$
|
11,703
|
|
|
|
$
|
11,235
|
|
|
|
4.2
|
%
|
|
|
Net patient revenue per adjusted patient day
|
|
|
$
|
2,593
|
|
|
|
$
|
2,437
|
|
|
|
6.4
|
%
|
|
|
|
$
|
2,561
|
|
|
|
$
|
2,433
|
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Patient Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare
|
|
|
|
20.4
|
%
|
|
|
|
22.4
|
%
|
|
|
(2.0
|
)%
|
*
|
|
|
|
20.0
|
%
|
|
|
|
22.0
|
%
|
|
|
(2.0
|
)%
|
*
|
|
Medicaid
|
|
|
|
8.2
|
%
|
|
|
|
9.9
|
%
|
|
|
(1.7
|
)%
|
*
|
|
|
|
8.6
|
%
|
|
|
|
8.8
|
%
|
|
|
(0.2
|
)%
|
*
|
|
Managed care
|
|
|
|
61.6
|
%
|
|
|
|
58.5
|
%
|
|
|
3.1
|
%
|
*
|
|
|
|
61.5
|
%
|
|
|
|
59.3
|
%
|
|
|
2.2
|
%
|
*
|
|
Indemnity, self-pay and other
|
|
|
|
9.8
|
%
|
|
|
|
9.2
|
%
|
|
|
0.6
|
%
|
*
|
|
|
|
9.9
|
%
|
|
|
|
9.9
|
%
|
|
|
—
|
%
|
*
|
|
(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
|
|
|
Nine Months Ended
|
|
|
|
|
|
03/31/15
|
|
|
|
|
6/30/2015
|
|
|
|
|
9/30/2015
|
|
|
|
|
9/30/2015
|
|
|
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues before provision for doubtful accounts
|
|
|
$
|
4,787
|
|
|
|
$
|
4,844
|
|
|
|
$
|
5,063
|
|
|
|
$
|
14,694
|
|
|
Less: Provision for doubtful accounts
|
|
|
|
363
|
|
|
|
|
352
|
|
|
|
|
371
|
|
|
|
|
1,086
|
|
|
Net operating revenues
|
|
|
|
4,424
|
|
|
|
|
4,492
|
|
|
|
|
4,692
|
|
|
|
|
13,608
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
4
|
|
|
|
|
16
|
|
|
|
|
28
|
|
|
|
|
48
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
2,125
|
|
|
|
|
2,185
|
|
|
|
|
2,258
|
|
|
|
|
6,568
|
|
|
Supplies
|
|
|
|
687
|
|
|
|
|
707
|
|
|
|
|
752
|
|
|
|
|
2,146
|
|
|
Other operating expenses, net
|
|
|
|
1,093
|
|
|
|
|
1,081
|
|
|
|
|
1,151
|
|
|
|
|
3,325
|
|
|
Electronic health record incentives
|
|
|
|
(6
|
)
|
|
|
|
(33
|
)
|
|
|
|
(7
|
)
|
|
|
|
(46
|
)
|
|
Depreciation and amortization
|
|
|
|
207
|
|
|
|
|
197
|
|
|
|
|
185
|
|
|
|
|
589
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
29
|
|
|
|
|
193
|
|
|
|
|
44
|
|
|
|
|
266
|
|
|
Litigation and investigation costs
|
|
|
|
3
|
|
|
|
|
14
|
|
|
|
|
50
|
|
|
|
|
67
|
|
|
Operating income
|
|
|
|
290
|
|
|
|
|
164
|
|
|
|
|
287
|
|
|
|
|
741
|
|
|
Interest expense
|
|
|
|
(199
|
)
|
|
|
|
(217
|
)
|
|
|
|
(248
|
)
|
|
|
|
(664
|
)
|
|
Investment earnings (losses)
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
|
|
|
—
|
|
|
Net income (loss) from continuing operations, before income taxes
|
|
|
|
91
|
|
|
|
|
(54
|
)
|
|
|
|
40
|
|
|
|
|
77
|
|
|
Income tax benefit (expense)
|
|
|
|
(16
|
)
|
|
|
|
27
|
|
|
|
|
(11
|
)
|
|
|
|
—
|
|
|
Net income (loss) from continuing operations, before discontinued
operations
|
|
|
|
75
|
|
|
|
|
(27
|
)
|
|
|
|
29
|
|
|
|
|
77
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
|
(1
|
)
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
|
|
(4
|
)
|
|
Litigation and investigation costs
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3
|
|
|
Income tax benefit (expense)
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net income (loss) from discontinued operations
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
Net income (loss)
|
|
|
|
76
|
|
|
|
|
(28
|
)
|
|
|
|
28
|
|
|
|
|
76
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
29
|
|
|
|
|
33
|
|
|
|
|
57
|
|
|
|
|
119
|
|
|
Net income available (loss attributable) to Tenet Healthcare
Corporation common shareholders
|
|
|
$
|
47
|
|
|
|
$
|
(61
|
)
|
|
|
$
|
(29
|
)
|
|
|
$
|
(43
|
)
|
|
Amounts available (attributable) to Tenet Healthcare Corporation
common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations, net of tax
|
|
|
$
|
46
|
|
|
|
$
|
(60
|
)
|
|
|
$
|
(28
|
)
|
|
|
$
|
(42
|
)
|
|
Net income (loss) from discontinued operations, net of tax
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
Net income available (loss attributable) to Tenet Healthcare
Corporation common shareholders
|
|
|
$
|
47
|
|
|
|
$
|
(61
|
)
|
|
|
$
|
(29
|
)
|
|
|
$
|
(43
|
)
|
|
Earnings (loss) per share available (attributable) to Tenet
Healthcare Corporation common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.47
|
|
|
|
$
|
(0.60
|
)
|
|
|
$
|
(0.28
|
)
|
|
|
$
|
(0.42
|
)
|
|
Discontinued operations
|
|
|
|
0.01
|
|
|
|
|
(0.01
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
|
$
|
0.48
|
|
|
|
$
|
(0.61
|
)
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
(0.43
|
)
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.46
|
|
|
|
$
|
(0.60
|
)
|
|
|
$
|
(0.28
|
)
|
|
|
$
|
(0.42
|
)
|
|
Discontinued operations
|
|
|
|
0.01
|
|
|
|
|
(0.01
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
|
$
|
0.47
|
|
|
|
$
|
(0.61
|
)
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
(0.43
|
)
|
|
Weighted average shares and dilutive securities outstanding (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
98,699
|
|
|
|
|
99,244
|
|
|
|
|
99,537
|
|
|
|
|
99,160
|
|
|
Diluted
|
|
|
|
100,872
|
|
|
|
|
99,244
|
|
|
|
|
99,537
|
|
|
|
|
99,160
|
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS(1)
|
|
(Unaudited)
|
|
|
|
(Dollars in millions except per patient day,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per admission, per adjusted admission
and per visit amounts)
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
03/31/15(2)
|
|
|
06/30/15
|
|
|
9/30/2015
|
|
|
9/30/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net inpatient revenues
|
|
|
$
|
2,691
|
|
|
|
$
|
2,622
|
|
|
|
$
|
2,603
|
|
|
|
$
|
7,916
|
|
|
Net outpatient revenues
|
|
|
$
|
1,412
|
|
|
|
$
|
1,484
|
|
|
|
$
|
1,515
|
|
|
|
$
|
4,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of acute care hospitals (at end of period)
|
|
|
|
80
|
|
|
|
|
80
|
|
|
|
|
83
|
|
|
|
|
83
|
|
|
Licensed beds (at end of period)
|
|
|
|
20,826
|
|
|
|
|
20,826
|
|
|
|
|
21,527
|
|
|
|
|
21,527
|
|
|
Average licensed beds
|
|
|
|
20,823
|
|
|
|
|
20,826
|
|
|
|
|
21,122
|
|
|
|
|
20,608
|
|
|
Utilization of licensed beds
|
|
|
|
52.1
|
%
|
|
|
|
49.1
|
%
|
|
|
|
47.8
|
%
|
|
|
|
50.4
|
%
|
|
Patient days - total
|
|
|
|
975,912
|
|
|
|
|
929,840
|
|
|
|
|
927,964
|
|
|
|
|
2,833,716
|
|
|
Adjusted patient days
|
|
|
|
1,618,402
|
|
|
|
|
1,589,567
|
|
|
|
|
1,601,405
|
|
|
|
|
4,809,374
|
|
|
Net inpatient revenue per patient day
|
|
|
$
|
2,756
|
|
|
|
$
|
2,821
|
|
|
|
$
|
2,805
|
|
|
|
$
|
2,794
|
|
|
Total admissions
|
|
|
|
208,333
|
|
|
|
|
201,908
|
|
|
|
|
201,870
|
|
|
|
|
612,111
|
|
|
Adjusted patient admissions
|
|
|
|
349,069
|
|
|
|
|
349,122
|
|
|
|
|
352,328
|
|
|
|
|
1,050,519
|
|
|
Charity and uninsured admissions
|
|
|
|
10,950
|
|
|
|
|
10,535
|
|
|
|
|
11,322
|
|
|
|
|
32,807
|
|
|
Net inpatient revenue per admission
|
|
|
$
|
12,912
|
|
|
|
$
|
12,991
|
|
|
|
$
|
12,894
|
|
|
|
$
|
12,932
|
|
|
Average length of stay (days)
|
|
|
|
4.68
|
|
|
|
|
4.61
|
|
|
|
|
4.60
|
|
|
|
|
4.63
|
|
|
Total surgeries
|
|
|
|
121,403
|
|
|
|
|
127,523
|
|
|
|
|
129,937
|
|
|
|
|
378,863
|
|
|
Admissions through emergency department
|
|
|
|
133,544
|
|
|
|
|
128,570
|
|
|
|
|
126,050
|
|
|
|
|
388,164
|
|
|
Emergency department visits
|
|
|
|
741,533
|
|
|
|
|
742,951
|
|
|
|
|
747,993
|
|
|
|
|
2,232,477
|
|
|
Total emergency department admissions and visits
|
|
|
|
875,077
|
|
|
|
|
871,521
|
|
|
|
|
874,043
|
|
|
|
|
2,620,641
|
|
|
Outpatient visits
|
|
|
|
1,994,573
|
|
|
|
|
2,063,037
|
|
|
|
|
2,076,524
|
|
|
|
|
6,134,134
|
|
|
Charity and uninsured outpatient visits
|
|
|
|
157,197
|
|
|
|
|
159,634
|
|
|
|
|
172,057
|
|
|
|
|
488,888
|
|
|
Net outpatient revenue per visit
|
|
|
$
|
708
|
|
|
|
$
|
719
|
|
|
|
$
|
730
|
|
|
|
$
|
719
|
|
|
Net patient revenue per adjusted patient admission
|
|
|
$
|
11,751
|
|
|
|
$
|
11,764
|
|
|
|
$
|
11,688
|
|
|
|
$
|
11,734
|
|
|
Net patient revenue per adjusted patient day
|
|
|
$
|
2,535
|
|
|
|
$
|
2,584
|
|
|
|
$
|
2,571
|
|
|
|
$
|
2,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Patient Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare
|
|
|
|
21.9
|
%
|
|
|
|
20.7
|
%
|
|
|
|
19.8
|
%
|
|
|
|
20.8
|
%
|
|
Medicaid
|
|
|
|
9.4
|
%
|
|
|
|
8.5
|
%
|
|
|
|
8.8
|
%
|
|
|
|
8.9
|
%
|
|
Managed care
|
|
|
|
58.6
|
%
|
|
|
|
60.8
|
%
|
|
|
|
61.1
|
%
|
|
|
|
60.2
|
%
|
|
Indemnity, self-pay and other
|
|
|
|
10.2
|
%
|
|
|
|
10.0
|
%
|
|
|
|
10.3
|
%
|
|
|
|
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,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per adjusted admission and per visit amounts)
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
03/31/15(2)
|
|
|
06/30/15
|
|
|
9/30/2015
|
|
|
9/30/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net inpatient revenues
|
|
|
$
|
2,568
|
|
|
|
$
|
2,493
|
|
|
|
$
|
2,472
|
|
|
|
$
|
7,533
|
|
|
Net outpatient revenues
|
|
|
$
|
1,350
|
|
|
|
$
|
1,406
|
|
|
|
$
|
1,427
|
|
|
|
$
|
4,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of acute care hospitals (at end of period)
|
|
|
|
76
|
|
|
|
|
76
|
|
|
|
|
76
|
|
|
|
|
76
|
|
|
Licensed beds (at end of period)
|
|
|
|
20,063
|
|
|
|
|
20,063
|
|
|
|
|
20,020
|
|
|
|
|
20,020
|
|
|
Average licensed beds
|
|
|
|
20,060
|
|
|
|
|
20,063
|
|
|
|
|
20,052
|
|
|
|
|
20,059
|
|
|
Utilization of licensed beds
|
|
|
|
51.8
|
%
|
|
|
|
48.7
|
%
|
|
|
|
47.4
|
%
|
|
|
|
49.3
|
%
|
|
Patient days - total
|
|
|
|
934,521
|
|
|
|
|
888,952
|
|
|
|
|
874,456
|
|
|
|
|
2,697,929
|
|
|
Adjusted patient days
|
|
|
|
1,550,103
|
|
|
|
|
1,520,845
|
|
|
|
|
1,503,639
|
|
|
|
|
4,574,587
|
|
|
Net inpatient revenue per patient day
|
|
|
$
|
2,748
|
|
|
|
$
|
2,804
|
|
|
|
$
|
2,827
|
|
|
|
$
|
2,792
|
|
|
Total admissions
|
|
|
|
199,460
|
|
|
|
|
193,324
|
|
|
|
|
191,054
|
|
|
|
|
583,838
|
|
|
Adjusted patient admissions
|
|
|
|
334,189
|
|
|
|
|
334,428
|
|
|
|
|
332,498
|
|
|
|
|
1,001,115
|
|
|
Charity and uninsured admissions
|
|
|
|
10,291
|
|
|
|
|
9,947
|
|
|
|
|
10,701
|
|
|
|
|
30,939
|
|
|
Net inpatient revenue per admission
|
|
|
$
|
12,875
|
|
|
|
$
|
12,895
|
|
|
|
$
|
12,939
|
|
|
|
$
|
12,903
|
|
|
Average length of stay (days)
|
|
|
|
4.69
|
|
|
|
|
4.60
|
|
|
|
|
4.58
|
|
|
|
|
4.62
|
|
|
Total surgeries
|
|
|
|
117,412
|
|
|
|
|
123,015
|
|
|
|
|
123,765
|
|
|
|
|
364,192
|
|
|
Admissions through emergency department
|
|
|
|
127,497
|
|
|
|
|
122,826
|
|
|
|
|
119,264
|
|
|
|
|
369,587
|
|
|
Emergency department visits
|
|
|
|
706,433
|
|
|
|
|
707,425
|
|
|
|
|
702,248
|
|
|
|
|
2,116,106
|
|
|
Total emergency department admissions and visits
|
|
|
|
833,930
|
|
|
|
|
830,251
|
|
|
|
|
821,512
|
|
|
|
|
2,485,693
|
|
|
Outpatient visits
|
|
|
|
1,912,749
|
|
|
|
|
1,980,927
|
|
|
|
|
1,963,166
|
|
|
|
|
5,856,842
|
|
|
Charity and uninsured outpatient visits
|
|
|
|
150,320
|
|
|
|
|
152,449
|
|
|
|
|
162,441
|
|
|
|
|
465,210
|
|
|
Net outpatient revenue per visit
|
|
|
$
|
706
|
|
|
|
$
|
710
|
|
|
|
$
|
727
|
|
|
|
$
|
714
|
|
|
Net patient revenue per adjusted patient admission
|
|
|
$
|
11,724
|
|
|
|
$
|
11,659
|
|
|
|
$
|
11,726
|
|
|
|
$
|
11,703
|
|
|
Net patient revenue per adjusted patient day
|
|
|
$
|
2,528
|
|
|
|
$
|
2,564
|
|
|
|
$
|
2,593
|
|
|
|
$
|
2,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Patient Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare
|
|
|
|
21.6
|
%
|
|
|
|
20.4
|
%
|
|
|
|
20.0
|
%
|
|
|
|
20.0
|
%
|
|
Medicaid
|
|
|
|
9.2
|
%
|
|
|
|
8.2
|
%
|
|
|
|
8.6
|
%
|
|
|
|
8.6
|
%
|
|
Managed care
|
|
|
|
59.2
|
%
|
|
|
|
61.6
|
%
|
|
|
|
61.5
|
%
|
|
|
|
61.5
|
%
|
|
Indemnity, self-pay and other
|
|
|
|
10.0
|
%
|
|
|
|
9.8
|
%
|
|
|
|
9.9
|
%
|
|
|
|
9.9
|
%
|
|
(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,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per adjusted 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
|
|
|
$
|
2,367
|
|
|
|
$
|
2,327
|
|
|
|
$
|
2,337
|
|
|
|
$
|
2,591
|
|
|
|
$
|
9,622
|
|
|
Net outpatient revenues
|
|
|
$
|
1,253
|
|
|
|
$
|
1,326
|
|
|
|
$
|
1,323
|
|
|
|
$
|
1,375
|
|
|
|
$
|
5,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of acute care hospitals (at end of period)
|
|
|
|
76
|
|
|
|
|
76
|
|
|
|
|
76
|
|
|
|
|
76
|
|
|
|
|
76
|
|
|
Licensed beds (at end of period)
|
|
|
|
19,899
|
|
|
|
|
19,999
|
|
|
|
|
19,999
|
|
|
|
|
20,051
|
|
|
|
|
20,051
|
|
|
Average licensed beds
|
|
|
|
19,899
|
|
|
|
|
19,948
|
|
|
|
|
19,999
|
|
|
|
|
20,042
|
|
|
|
|
19,972
|
|
|
Utilization of licensed beds
|
|
|
|
50.6
|
%
|
|
|
|
48.6
|
%
|
|
|
|
48.1
|
%
|
|
|
|
48.7
|
%
|
|
|
|
49.0
|
%
|
|
Patient days - total
|
|
|
|
906,671
|
|
|
|
|
882,502
|
|
|
|
|
884,748
|
|
|
|
|
898,342
|
|
|
|
|
3,572,263
|
|
|
Adjusted patient days
|
|
|
|
1,490,202
|
|
|
|
|
1,502,017
|
|
|
|
|
1,501,624
|
|
|
|
|
1,512,593
|
|
|
|
|
6,006,436
|
|
|
Net inpatient revenue per patient day
|
|
|
$
|
2,611
|
|
|
|
$
|
2,637
|
|
|
|
$
|
2,641
|
|
|
|
$
|
2,884
|
|
|
|
$
|
2,694
|
|
|
Total admissions
|
|
|
|
190,389
|
|
|
|
|
190,030
|
|
|
|
|
192,283
|
|
|
|
|
194,160
|
|
|
|
|
766,862
|
|
|
Adjusted patient admissions
|
|
|
|
316,196
|
|
|
|
|
326,692
|
|
|
|
|
330,219
|
|
|
|
|
330,870
|
|
|
|
|
1,303,977
|
|
|
Charity and uninsured admissions
|
|
|
|
12,095
|
|
|
|
|
10,509
|
|
|
|
|
10,320
|
|
|
|
|
10,573
|
|
|
|
|
43,497
|
|
|
Net inpatient revenue per admission
|
|
|
$
|
12,432
|
|
|
|
$
|
12,245
|
|
|
|
$
|
12,154
|
|
|
|
$
|
13,345
|
|
|
|
$
|
12,547
|
|
|
Average length of stay (days)
|
|
|
|
4.76
|
|
|
|
|
4.64
|
|
|
|
|
4.60
|
|
|
|
|
4.63
|
|
|
|
|
4.66
|
|
|
Total surgeries
|
|
|
|
115,911
|
|
|
|
|
121,292
|
|
|
|
|
122,821
|
|
|
|
|
123,855
|
|
|
|
|
483,879
|
|
|
Admissions through emergency department
|
|
|
|
120,165
|
|
|
|
|
119,276
|
|
|
|
|
118,287
|
|
|
|
|
122,089
|
|
|
|
|
479,817
|
|
|
Emergency department visits
|
|
|
|
657,256
|
|
|
|
|
690,700
|
|
|
|
|
690,765
|
|
|
|
|
703,265
|
|
|
|
|
2,741,986
|
|
|
Total emergency department admissions and visits
|
|
|
|
777,421
|
|
|
|
|
809,976
|
|
|
|
|
809,052
|
|
|
|
|
825,354
|
|
|
|
|
3,221,803
|
|
|
Outpatient visits
|
|
|
|
1,789,763
|
|
|
|
|
1,890,198
|
|
|
|
|
1,905,255
|
|
|
|
|
1,917,941
|
|
|
|
|
7,503,157
|
|
|
Charity and uninsured outpatient visits
|
|
|
|
158,501
|
|
|
|
|
162,007
|
|
|
|
|
158,131
|
|
|
|
|
158,485
|
|
|
|
|
637,124
|
|
|
Net outpatient revenue per visit
|
|
|
$
|
700
|
|
|
|
$
|
702
|
|
|
|
$
|
694
|
|
|
|
$
|
717
|
|
|
|
$
|
703
|
|
|
Net patient revenue per adjusted patient admission
|
|
|
$
|
11,449
|
|
|
|
$
|
11,182
|
|
|
|
$
|
11,084
|
|
|
|
$
|
11,987
|
|
|
|
$
|
11,426
|
|
|
Net patient revenue per adjusted patient day
|
|
|
$
|
2,429
|
|
|
|
$
|
2,432
|
|
|
|
$
|
2,437
|
|
|
|
$
|
2,622
|
|
|
|
$
|
2,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Patient Revenues from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare
|
|
|
|
22.5
|
%
|
|
|
|
22.4
|
%
|
|
|
|
21.2
|
%
|
|
|
|
20.7
|
%
|
|
|
|
21.7
|
%
|
|
Medicaid
|
|
|
|
7.7
|
%
|
|
|
|
9.9
|
%
|
|
|
|
8.7
|
%
|
|
|
|
11.1
|
%
|
|
|
|
9.4
|
%
|
|
Managed care
|
|
|
|
58.3
|
%
|
|
|
|
58.3
|
%
|
|
|
|
61.1
|
%
|
|
|
|
58.3
|
%
|
|
|
|
59.0
|
%
|
|
Indemnity, self-pay and other
|
|
|
|
11.5
|
%
|
|
|
|
9.2
|
%
|
|
|
|
9.0
|
%
|
|
|
|
9.9
|
%
|
|
|
|
9.9
|
%
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Operations and other
|
|
|
|
|
|
|
|
|
$
|
17,027
|
|
|
|
$
|
17,008
|
|
|
Conifer
|
|
|
|
|
|
|
|
|
|
1,167
|
|
|
|
|
929
|
|
|
Ambulatory Care
|
|
|
|
|
|
|
|
|
|
4,979
|
|
|
|
|
204
|
|
|
Total
|
|
|
|
|
|
|
|
|
$
|
23,173
|
|
|
|
$
|
18,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
Capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Operations and other
|
|
|
$
|
194
|
|
|
|
$
|
205
|
|
|
|
$
|
536
|
|
|
|
$
|
711
|
|
|
Conifer
|
|
|
|
6
|
|
|
|
|
4
|
|
|
|
|
16
|
|
|
|
|
17
|
|
|
Ambulatory Care
|
|
|
|
7
|
|
|
|
|
2
|
|
|
|
|
14
|
|
|
|
|
6
|
|
|
Total
|
|
|
$
|
207
|
|
|
|
$
|
211
|
|
|
|
$
|
566
|
|
|
|
$
|
734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Operations and other
|
|
|
$
|
4,179
|
|
|
|
$
|
3,945
|
|
|
|
$
|
12,505
|
|
|
|
$
|
11,468
|
|
|
Conifer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tenet
|
|
|
|
163
|
|
|
|
|
148
|
|
|
|
|
488
|
|
|
|
|
426
|
|
|
Other customers
|
|
|
|
184
|
|
|
|
|
148
|
|
|
|
|
541
|
|
|
|
|
440
|
|
|
Total Conifer revenues
|
|
|
|
347
|
|
|
|
|
296
|
|
|
|
|
1,029
|
|
|
|
|
866
|
|
|
Ambulatory Care
|
|
|
|
329
|
|
|
|
|
82
|
|
|
|
|
562
|
|
|
|
|
230
|
|
|
Intercompany eliminations
|
|
|
|
(163
|
)
|
|
|
|
(148
|
)
|
|
|
|
(488
|
)
|
|
|
|
(426
|
)
|
|
Total
|
|
|
$
|
4,692
|
|
|
|
$
|
4,175
|
|
|
|
$
|
13,608
|
|
|
|
$
|
12,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Operations and other
|
|
|
$
|
383
|
|
|
|
$
|
386
|
|
|
|
$
|
1,259
|
|
|
|
$
|
1,098
|
|
|
Conifer
|
|
|
|
61
|
|
|
|
|
47
|
|
|
|
|
204
|
|
|
|
|
139
|
|
|
Ambulatory Care
|
|
|
|
122
|
|
|
|
|
26
|
|
|
|
|
200
|
|
|
|
|
69
|
|
|
Total
|
|
|
$
|
566
|
|
|
|
$
|
459
|
|
|
|
$
|
1,663
|
|
|
|
$
|
1,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital Operations and other
|
|
|
$
|
156
|
|
|
|
$
|
199
|
|
|
|
$
|
525
|
|
|
|
$
|
583
|
|
|
Conifer
|
|
|
|
12
|
|
|
|
|
5
|
|
|
|
|
36
|
|
|
|
|
15
|
|
|
Ambulatory Care
|
|
|
|
17
|
|
|
|
|
3
|
|
|
|
|
28
|
|
|
|
|
11
|
|
|
Total
|
|
|
$
|
185
|
|
|
|
$
|
207
|
|
|
|
$
|
589
|
|
|
|
$
|
609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
566
|
|
|
|
$
|
459
|
|
|
|
$
|
1,663
|
|
|
|
$
|
1,306
|
|
|
Depreciation and amortization
|
|
|
|
(185
|
)
|
|
|
|
(207
|
)
|
|
|
|
(589
|
)
|
|
|
|
(609
|
)
|
|
Impairments and restructuring charges, and acquisition-related costs
|
|
|
|
(44
|
)
|
|
|
|
(37
|
)
|
|
|
|
(266
|
)
|
|
|
|
(90
|
)
|
|
Litigation and investigation costs
|
|
|
|
(50
|
)
|
|
|
|
(4
|
)
|
|
|
|
(67
|
)
|
|
|
|
(19
|
)
|
|
Interest expense
|
|
|
|
(248
|
)
|
|
|
|
(186
|
)
|
|
|
|
(664
|
)
|
|
|
|
(558
|
)
|
|
Loss from early extinguishment of debt
|
|
|
|
—
|
|
|
|
|
(24
|
)
|
|
|
|
—
|
|
|
|
|
(24
|
)
|
|
Investment Earnings
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Income from continuing operations before income taxes
|
|
|
$
|
40
|
|
|
|
$
|
1
|
|
|
|
$
|
77
|
|
|
|
$
|
6
|
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
STATEMENT OF OPERATIONS – AMBULATORY CARE SEGMENT
|
|
INCLUDING PRO FORMA USPI AND ASPEN FOR ALL PERIODS
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended September 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
|
|
|
$
|
335
|
|
|
|
$
|
556
|
|
|
|
$
|
291
|
|
|
|
$
|
493
|
|
|
Less: Provision for doubtful accounts
|
|
|
|
(6
|
)
|
|
|
|
(14
|
)
|
|
|
|
(4
|
)
|
|
|
|
(12
|
)
|
|
Net operating revenues(1)
|
|
|
|
329
|
|
|
|
|
542
|
|
|
|
|
287
|
|
|
|
|
481
|
|
|
Equity in earnings of unconsolidated affiliates(2)
|
|
|
|
30
|
|
|
|
|
—
|
|
|
|
|
27
|
|
|
|
|
—
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
106
|
|
|
|
|
132
|
|
|
|
|
93
|
|
|
|
|
117
|
|
|
Supplies
|
|
|
|
64
|
|
|
|
|
138
|
|
|
|
|
51
|
|
|
|
|
119
|
|
|
Other operating expenses, net
|
|
|
|
67
|
|
|
|
|
117
|
|
|
|
|
66
|
|
|
|
|
102
|
|
|
Depreciation and amortization
|
|
|
|
17
|
|
|
|
|
20
|
|
|
|
|
14
|
|
|
|
|
19
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
Operating income
|
|
|
|
103
|
|
|
|
|
135
|
|
|
|
|
89
|
|
|
|
|
124
|
|
|
Interest expense
|
|
|
|
(34
|
)
|
|
|
|
(7
|
)
|
|
|
|
(31
|
)
|
|
|
|
(7
|
)
|
|
Other
|
|
|
|
—
|
|
|
|
|
(2
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net income from continuing operations, before income taxes
|
|
|
|
69
|
|
|
|
|
126
|
|
|
|
|
58
|
|
|
|
|
117
|
|
|
Income tax benefit (expense)
|
|
|
|
(14
|
)
|
|
|
|
(2
|
)
|
|
|
|
(12
|
)
|
|
|
|
(2
|
)
|
|
Net income
|
|
|
|
55
|
|
|
|
$
|
124
|
|
|
|
|
46
|
|
|
|
$
|
115
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
51
|
|
|
|
|
|
|
|
38
|
|
|
|
|
|
Net income attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
4
|
|
|
|
|
|
|
$
|
8
|
|
|
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
|
|
$
|
30
|
|
|
|
|
|
|
$
|
27
|
|
|
(1)
|
|
On a same-facility system-wide basis, net revenue in Tenet’s
Ambulatory Care segment increased 10.1% during the three months
ended September 30, 2015, with cases increasing 6.3% and revenue per
case increasing 3.5%.
|
|
|
|
|
|
(2)
|
|
At September 30, 2015, 157 of the 298 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)
|
|
|
|
|
|
|
Nine Months Ended September 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
|
|
|
$
|
962
|
|
|
|
$
|
1,576
|
|
|
|
$
|
843
|
|
|
|
$
|
1,380
|
|
|
Less: Provision for doubtful accounts
|
|
|
|
(16
|
)
|
|
|
|
(40
|
)
|
|
|
|
(11
|
)
|
|
|
|
(34
|
)
|
|
Net operating revenues(1)
|
|
|
|
946
|
|
|
|
|
1,536
|
|
|
|
|
832
|
|
|
|
|
1,346
|
|
|
Equity in earnings of unconsolidated affiliates(2)
|
|
|
|
79
|
|
|
|
|
—
|
|
|
|
|
73
|
|
|
|
|
—
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
308
|
|
|
|
|
379
|
|
|
|
|
271
|
|
|
|
|
333
|
|
|
Supplies
|
|
|
|
174
|
|
|
|
|
394
|
|
|
|
|
146
|
|
|
|
|
336
|
|
|
Other operating expenses, net
|
|
|
|
212
|
|
|
|
|
337
|
|
|
|
|
195
|
|
|
|
|
291
|
|
|
Depreciation and amortization
|
|
|
|
46
|
|
|
|
|
60
|
|
|
|
|
42
|
|
|
|
|
56
|
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
2
|
|
|
|
|
(6
|
)
|
|
Operating income
|
|
|
|
283
|
|
|
|
|
363
|
|
|
|
|
249
|
|
|
|
|
336
|
|
|
Interest expense
|
|
|
|
(102
|
)
|
|
|
|
(21
|
)
|
|
|
|
(92
|
)
|
|
|
|
(21
|
)
|
|
Other
|
|
|
|
—
|
|
|
|
|
(2
|
)
|
|
|
|
—
|
|
|
|
|
1
|
|
|
Net income from continuing operations, before income taxes
|
|
|
|
181
|
|
|
|
|
340
|
|
|
|
|
157
|
|
|
|
|
316
|
|
|
Income tax expense
|
|
|
|
(36
|
)
|
|
|
|
(5
|
)
|
|
|
|
(30
|
)
|
|
|
|
(6
|
)
|
|
Net Income
|
|
|
|
145
|
|
|
|
$
|
335
|
|
|
|
|
127
|
|
|
|
$
|
310
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
126
|
|
|
|
|
|
|
|
101
|
|
|
|
|
|
Net income attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
19
|
|
|
|
|
|
|
$
|
26
|
|
|
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
|
|
$
|
79
|
|
|
|
|
|
|
$
|
73
|
|
|
(1)
|
|
On a pro forma same-facility system-wide basis, net revenue in
Tenet’s Ambulatory Care segment increased 9.2% during the nine
months ended September 30, 2015, with cases increasing 7.0% and
revenue per case increasing 2.1%.
|
|
|
|
|
|
(2)
|
|
At September 30, 2015, 157 of the 298 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
nine months ended September 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
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available (loss attributable) to Tenet Healthcare
Corporation common shareholders
|
|
|
$
|
(29
|
)
|
|
|
$
|
9
|
|
|
|
$
|
(43
|
)
|
|
|
$
|
(49
|
)
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
(57
|
)
|
|
|
|
(9
|
)
|
|
|
|
(119
|
)
|
|
|
|
(44
|
)
|
|
Net loss from discontinued operations, net of tax
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(22
|
)
|
|
Income from continuing operations
|
|
|
|
29
|
|
|
|
|
19
|
|
|
|
|
77
|
|
|
|
|
17
|
|
|
Income tax benefit (expense)
|
|
|
|
(11
|
)
|
|
|
|
18
|
|
|
|
|
—
|
|
|
|
|
11
|
|
|
Investment earnings
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Loss from early extinguishment of debt
|
|
|
|
—
|
|
|
|
|
(24
|
)
|
|
|
|
—
|
|
|
|
|
(24
|
)
|
|
Interest expense
|
|
|
|
(248
|
)
|
|
|
|
(186
|
)
|
|
|
|
(664
|
)
|
|
|
|
(558
|
)
|
|
Operating income
|
|
|
|
287
|
|
|
|
|
211
|
|
|
|
|
741
|
|
|
|
|
588
|
|
|
Litigation and investigation costs
|
|
|
|
(50
|
)
|
|
|
|
(4
|
)
|
|
|
|
(67
|
)
|
|
|
|
(19
|
)
|
|
Impairment and restructuring charges, and acquisition-related costs
|
|
|
|
(44
|
)
|
|
|
|
(37
|
)
|
|
|
|
(266
|
)
|
|
|
|
(90
|
)
|
|
Depreciation and amortization
|
|
|
|
(185
|
)
|
|
|
|
(207
|
)
|
|
|
|
(589
|
)
|
|
|
|
(609
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
566
|
|
|
|
$
|
459
|
|
|
|
$
|
1,663
|
|
|
|
$
|
1,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues
|
|
|
$
|
4,692
|
|
|
|
$
|
4,175
|
|
|
|
$
|
13,608
|
|
|
|
$
|
12,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA
margin)
|
|
|
|
12.1
|
%
|
|
|
|
11.0
|
%
|
|
|
|
12.2
|
%
|
|
|
|
10.8
|
%
|
|
|
|
|
|
TENET HEALTHCARE CORPORATION
|
|
Additional Supplemental Non-GAAP disclosures
|
|
Table #2 – Reconciliation of Adjusted Free Cash Flow
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
(Dollars in millions)
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
Net cash provided by operating activities
|
|
|
$
|
482
|
|
|
|
$
|
221
|
|
|
|
$
|
835
|
|
|
|
$
|
468
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for restructuring charges, acquisition-related costs, and
litigation costs and settlements
|
|
|
|
(71
|
)
|
|
|
|
(31
|
)
|
|
|
|
(157
|
)
|
|
|
|
(115
|
)
|
|
Net cash used in operating activities from discontinued operations
|
|
|
|
(10
|
)
|
|
|
|
(4
|
)
|
|
|
|
(18
|
)
|
|
|
|
(16
|
)
|
|
Adjusted net cash provided by operating activities – continuing
operations
|
|
|
|
563
|
|
|
|
|
256
|
|
|
|
|
1,010
|
|
|
|
|
599
|
|
|
Purchases of property and equipment – continuing operations
|
|
|
|
(207
|
)
|
|
|
|
(211
|
)
|
|
|
|
(566
|
)
|
|
|
|
(734
|
)
|
|
Adjusted free cash flow – continuing operations
|
|
|
$
|
356
|
|
|
|
$
|
45
|
|
|
|
$
|
444
|
|
|
|
$
|
(135
|
)
|
|
|
|
|
|
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)
|
|
|
Q4 2015
|
|
|
2015
|
|
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
|
Net income attributable to Tenet Healthcare Corporation common
shareholders
|
|
|
$
|
15
|
|
|
|
$
|
55
|
|
|
|
$
|
(28
|
)
|
|
|
$
|
12
|
|
|
Less: Net (income) attributable to noncontrolling interests
|
|
|
|
(61
|
)
|
|
|
|
(81
|
)
|
|
|
|
(180
|
)
|
|
|
|
(200
|
)
|
|
Loss from discontinued operations, net of tax
|
|
|
|
(4
|
)
|
|
|
|
1
|
|
|
|
|
(5
|
)
|
|
|
|
-
|
|
|
Income from continuing operations
|
|
|
|
80
|
|
|
|
|
135
|
|
|
|
|
157
|
|
|
|
|
212
|
|
|
Income tax expense
|
|
|
|
(30
|
)
|
|
|
|
(55
|
)
|
|
|
|
(30
|
)
|
|
|
|
(55
|
)
|
|
Income from continuing operations, before income taxes
|
|
|
|
110
|
|
|
|
|
190
|
|
|
|
|
187
|
|
|
|
|
267
|
|
|
Interest expense, net
|
|
|
|
(256
|
)
|
|
|
|
(246
|
)
|
|
|
|
(920
|
)
|
|
|
|
(910
|
)
|
|
Operating income
|
|
|
|
366
|
|
|
|
|
436
|
|
|
|
|
1,107
|
|
|
|
|
1,177
|
|
|
Impairment and restructuring charges, acquisition-related costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and litigation costs and settlements(a)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(333
|
)
|
|
|
|
(333
|
)
|
|
Depreciation and amortization
|
|
|
|
(221
|
)
|
|
|
|
(201
|
)
|
|
|
|
(810
|
)
|
|
|
|
(790
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
587
|
|
|
|
$
|
637
|
|
|
|
$
|
2,250
|
|
|
|
$
|
2,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenues
|
|
|
$
|
4,742
|
|
|
|
$
|
4,942
|
|
|
|
$
|
18,350
|
|
|
|
$
|
18,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA
margin)
|
|
|
|
12.4
|
%
|
|
|
|
12.9
|
%
|
|
|
|
12.3
|
%
|
|
|
|
12.4
|
%
|
|
(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)
|
|
|
Q4 2015
|
|
|
2015
|
|
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
|
Adjusted EBITDA
|
|
|
$
|
587
|
|
|
|
$
|
637
|
|
|
|
$
|
2,250
|
|
|
|
$
|
2,300
|
|
|
Depreciation and amortization
|
|
|
|
(221
|
)
|
|
|
|
(201
|
)
|
|
|
|
(810
|
)
|
|
|
|
(790
|
)
|
|
Interest expense, net
|
|
|
|
(256
|
)
|
|
|
|
(246
|
)
|
|
|
|
(920
|
)
|
|
|
|
(910
|
)
|
|
Income (loss) from continuing operations before income taxes
|
|
|
|
110
|
|
|
|
|
190
|
|
|
|
|
520
|
|
|
|
|
600
|
|
|
Income tax (expense) benefit
|
|
|
|
(42
|
)
|
|
|
|
(67
|
)
|
|
|
|
(160
|
)
|
|
|
|
(185
|
)
|
|
Normalized income (loss) from continuing operations
|
|
|
|
68
|
|
|
|
|
123
|
|
|
|
|
360
|
|
|
|
|
415
|
|
|
Net (income) attributable to noncontrolling interests
|
|
|
|
(61
|
)
|
|
|
|
(81
|
)
|
|
|
|
(180
|
)
|
|
|
|
(200
|
)
|
|
Net income (loss) attributable to common shareholders
|
|
|
$
|
7
|
|
|
|
$
|
42
|
|
|
|
$
|
180
|
|
|
|
$
|
215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully diluted weighted average share outstanding (in millions)
|
|
|
|
102
|
|
|
|
|
102
|
|
|
|
|
102
|
|
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized fully diluted earnings per share – continuing
operations
|
|
|
$
|
0.07
|
|
|
|
$
|
0.41
|
|
|
|
$
|
1.76
|
|
|
|
$
|
2.11
|
|
|
|
|
|
|
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
|
|
|
$
|
1,058
|
|
|
|
$
|
1,168
|
|
|
Less:
|
|
|
|
|
|
|
|
Payments for restructuring charges, acquisition-related costs and
litigation costs and settlements(a)
|
|
|
|
(157
|
)
|
|
|
|
(157
|
)
|
|
Net cash used in operating activities from discontinued operations
|
|
|
|
(35
|
)
|
|
|
|
(25
|
)
|
|
Adjusted net cash provided by operating activities – continuing
operations
|
|
|
$
|
1,250
|
|
|
|
$
|
1,350
|
|
|
Purchases of property and equipment – continuing operations
|
|
|
|
(900
|
)
|
|
|
|
(850
|
)
|
|
Adjusted free cash flow – continuing operations
|
|
|
$
|
350
|
|
|
|
$
|
500
|
|
|
(a)
|
|
Company does not forecast impairment and restructuring charges,
acquisition-related costs, and litigation costs and settlements
|
