DALLAS--(BUSINESS WIRE)--During the J.P. Morgan Healthcare Conference in San Francisco, Ron
Rittenmeyer, executive chairman and CEO of Tenet Healthcare Corporation
(NYSE:THC), discussed the Company’s ongoing actions to improve financial
performance and returns for shareholders. The presentation is available
on the investor relations section of Tenet’s website at www.tenethealth.com/investors.
“Tenet is operating with urgency, accountability for performance and a
relentless focus on quality care, patient satisfaction, cost management
and compliance,” said Mr. Rittenmeyer. “We are focused on flattening and
simplifying our enterprise, growing our hospital and ambulatory
positions in attractive markets and reducing costs to improve our
financial performance and enhance returns for our shareholders. We also
are making strong progress on completing our non-core hospital
divestiture program, exploring a potential sale of Conifer, identifying
additional run-rate savings and continuing to refresh our Board, among
other initiatives. We will continue executing on these strategies, which
we believe will best position Tenet for future growth and success.”
Highlights of the presentation include:
-
Commitment to enhancing shareholder value by strategically
repositioning the Company to yield higher margins and better free cash
flow;
-
Focusing resources to grow Tenet’s leadership position in healthcare
delivery;
-
Accelerating improvement in quality and patient experience;
-
Execution of the divestiture program of non-core markets and assets,
which is on track and expected to yield in excess of $1 billion of
proceeds (over $700 million in cash and approximately $300 million
from the elimination of capital leases and related debt);
-
Process underway to sell Conifer, a valuable but non-strategic asset,
while ensuring it is in the best position to continue to provide
quality service to its clients;
-
Recently announced cost reduction plan expected to realize $250
million of annualized run-rate savings by the end of 2018, which
should reduce corporate overhead by 20% and further streamline the
Company’s hospital operations, Conifer and USPI;
-
Plan to reduce leverage well in advance of any significant debt
maturities, targeting 5.0x or less by the end of 2019;
-
Ongoing refreshment of the Board of Directors, which ensures a strong
mix of capabilities and experience that aligns with the Company’s
strategic direction and will help maximize the future value of Tenet;
and
-
Clarity on the new tax law, which is positive for Tenet from an
economic perspective, due to the expectation of lower cash tax
payments and reduction in taxable income that the Company anticipates
reporting on its federal tax return. Although the change meaningfully
lowers adjusted earnings per share in 2018, the Company anticipates
the new tax law will positively affect EPS over the next two to three
years due to the lower tax rate.
About Tenet Healthcare
Tenet Healthcare Corporation is a diversified healthcare services
company with nearly 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, the Company operates general acute care and specialty
hospitals, ambulatory surgery centers, urgent care centers and other
outpatient facilities in the United States and 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, 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,”
“project,” “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, 2016 and other filings with
the Securities and Exchange Commission.
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.
