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DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE: THC) reported a net loss from continuing operations attributable to Tenet common shareholders of $9 million in the third quarter of 2018 compared to a $366 million net loss from continuing operations in the third quarter of 2017. Adjusted EBITDA was $577 million in the third quarter of 2018 compared to $507 million in the third quarter of 2017.

Ronald A. Rittenmeyer, Executive Chairman and CEO, said, “We had a solid quarter of results at both USPI and Conifer. Our hospitals did not meet our expectations and we are focusing on specific areas to address those gaps. Strengthening enterprise operations remains our primary focus – and we will continue moving with urgency to implement targeted growth initiatives, achieve operational efficiencies, make further enhancements to our facility portfolio and instill culture changes to drive accountability.”

Hospital Operations and Other Segment

Net operating revenues in the Hospital Operations and other segment were $3.762 billion, down 2.7 percent from the third quarter of 2017, primarily due to hospital divestitures, partially offset by same-hospital revenue growth.

On a same-hospital basis, net patient revenues after implicit price concessions were $3.432 billion, up 6.0 percent from the third quarter of 2017. Adjusted admissions grew 0.3 percent in the third quarter of 2018 and would have been up approximately 1.3 percent on a same-hospital basis excluding service line closures and declines in Detroit. The Company’s decision to discontinue certain services at selected hospitals lowered same-hospital adjusted admissions by approximately 30 basis points in the third quarter of 2018. In addition, volume declines in Detroit lowered same-hospital adjusted admissions by approximately 70 basis points. Revenue per adjusted admission increased 5.7 percent on a same-hospital basis. Same-hospital revenue included $71 million from the California Provider Fee Program in the third quarter of 2018 compared to no revenue in the third quarter of 2017 since the 2017 program was not approved until December 2017; excluding timing differences related to the California Provider Fee, same-hospital revenue per adjusted admission increased 3.6 percent.

Adjusted EBITDA in Tenet’s hospital segment was $312 million, an increase of $43 million or 16.0 percent as compared to $269 million in the third quarter of 2017. Key items impacting the year-over-year comparison in Adjusted EBITDA include: (i) a $71 million increase in California Provider Fee revenue, (ii) a $13 million decline in EBITDA due to facilities that have been divested; (iii) a $16 million gain in the third quarter of 2018 from the sale of a minority interest investment which was recorded as a reduction in other operating expenses, (iv) a $4 million impact from hurricanes in the third quarter of 2018 compared to a $20 million impact in the third quarter of 2017, (v) an unanticipated $21 million loss on risk-based contracts in California in the third quarter of 2018 compared to $2 million of EBITDA in the third quarter of 2017, (vi) $11 million of negative EBITDA in the third quarter of 2018 from three hospitals that are being divested compared to $2 million of negative EBITDA in the third quarter of 2017, and (vii) a $1 million decline in electronic health record incentives. After normalizing for these items, Adjusted EBITDA in the hospital segment declined by $10 million, or 2.9 percent.

Tenet’s health plan business recognized $8 million of revenue and $9 million of Adjusted EBITDA in the third quarter of 2018 versus $10 million of revenue and negative $6 million of Adjusted EBITDA in the third quarter of 2017. The revenue and expenses associated with the Company’s health plan operations are included in Tenet’s consolidated statements of operations; however, the results are excluded from Adjusted EBITDA in both periods.

Selected operating expenses in the hospital segment, defined as the sum of salaries, wages and benefits, supplies and other operating expenses, increased 3.9 percent on a per adjusted admission basis in the third quarter of 2018. Salaries, wages and benefits and supply expense were well managed, increasing 0.9 percent and 4.6 percent per adjusted admission, respectively. Other operating expenses increased 9.5 percent per adjusted admission primarily due to the aforementioned losses on risk-based contracts in California and an increase in malpractice expense, partially offset by the aforementioned $16 million gain on the sale of an asset.

Exchanges

Tenet’s same-hospital exchange outpatient visits increased 8.1 percent to 51,539 in the third quarter of 2018. Same-hospital exchange admissions were 4,577 in the third quarter of 2018, down 4.0 percent from the third quarter of 2017.

Ambulatory Care Segment

During the third quarter of 2018, the Ambulatory segment produced net operating revenues of $502 million, representing an increase of 7.3 percent as compared to $468 million in the third quarter of 2017. In addition, the Ambulatory segment generated Adjusted EBITDA of $184 million, up 15.7 percent from $159 million in the third quarter of 2017 and Adjusted EBITDA less facility-level noncontrolling interest expense was $116 million, up 11.5 percent from $104 million in the third quarter of 2017.

The results of many of the facilities in which the Ambulatory segment has an investment are not consolidated by Tenet. To help analyze the segment’s results of operations, management uses system-wide measures, which include revenues and cases of both consolidated and unconsolidated facilities. On a same-facility system-wide basis, revenue in the Ambulatory segment increased 6.7 percent, with cases increasing 5.0 percent and revenue per case increasing 1.6 percent. In the surgical business, which represents the majority of the revenue in the Ambulatory segment, same-facility system-wide revenue grew 6.6 percent, with cases up 4.0 percent and revenue per case up 2.5 percent. In the non-surgical business, same-facility system-wide revenue grew 9.4 percent, with visits up 6.6 percent and revenue per visit up 2.5 percent.

Conifer Segment

During the third quarter of 2018, primarily due to client attrition following divestitures by Tenet and other customers, Conifer’s revenue decreased 7.5 percent to $371 million, down from $401 million in the third quarter of 2017. Revenue from third party customers declined 10.7 percent to $225 million.

Conifer generated $81 million of Adjusted EBITDA in the third quarter of 2018, up 2.5 percent from $79 million in the third quarter of 2017. Adjusted EBITDA margins increased 210 basis points to 21.8 percent in the third quarter of 2018, up from 19.7 percent in the third quarter of 2017.

Net Income and Earnings Per Share

Tenet reported a net loss from continuing operations attributable to Tenet common shareholders of $9 million, or $0.09 per diluted share, in the third quarter of 2018 compared to a net loss of $366 million, or $3.63 per diluted share, in the third quarter of 2017.

As shown on Table #2 at the end of this release, the net loss from continuing operations attributable to Tenet common shareholders of $9 million included: (i) $46 million of pre-tax impairment and restructuring charges and acquisition-related costs including $21 million of employee severance, $5 million of contract and lease termination fees, and $20 million of other items; (ii) $9 million of pre-tax litigation and investigation costs; (iii) $7 million of pre-tax net losses on sales, consolidation and deconsolidation of facilities, and, (iv) $9 million of income from divested and closed businesses. These items collectively lowered pre-tax income by $53 million, after-tax income by $39 million and diluted earnings per share by $0.38.

After adjusting for the items listed above and on Table #2, Tenet produced Adjusted net income from continuing operations available to Tenet common shareholders of $30 million, or $0.29 per diluted share, during the third quarter of 2018, as compared to an Adjusted net loss from continuing operations attributable to Tenet common shareholders of $17 million, or $0.17 per diluted share, in the third quarter of 2017.

A reconciliation of GAAP net income available (loss attributable) to Tenet common shareholders to Adjusted net income available (loss attributable) from continuing operations and Adjusted diluted earnings (loss) per share from continuing operations is contained in Table #2 at the end of this release.

Cash Flow and Liquidity

Cash and cash equivalents were $500 million at September 30, 2018 compared to $403 million at June 30, 2018. The Company had no outstanding borrowings on its $1 billion credit line as of September 30, 2018. Accounts receivable days outstanding from continuing operations were 56.3 at September 30, 2018 compared to 55.1 at June 30, 2018 and 55.8 at December 31, 2017.

Net cash provided by operating activities was $799 in the nine months ended September 30, 2018, representing a $90 million increase compared to $709 million in the first nine months of 2017. After subtracting $404 million and $492 million of capital expenditures in the first nine months of 2018 and 2017, respectively, Free Cash Flow was $395 million in the first nine months of 2018, an increase of $178 million compared to $217 million in the first nine months of 2017. Adjusted Free Cash Flow was $512 million in the first nine months of 2018, representing a $204 million increase from $308 million in the first nine months of 2017.

Net cash provided by investing activities was $120 million in the first nine months of 2018 compared to $227 million in the first nine months of 2017. The 2018 period included $663 million of proceeds from the sales of facilities, long-term investments and other assets, primarily from the sale of the Company’s two hospitals in the Philadelphia area, MacNeal Hospital, Des Peres Hospital, the Company’s minority interests in four Dallas-area hospitals and the sale of Aspen in the United Kingdom. The 2018 period also included $140 million of purchases of businesses, joint ventures and equity investments, primarily related to USPI’s acquisition program.

Net cash used in financing activities was $1.030 billion in the first nine months of 2018 compared to $1.223 billion of net cash used in financing activities in the first nine months of 2017. The 2018 period included $643 million in purchases of noncontrolling interests, including approximately $630 million in the second quarter of 2018 to increase Tenet’s ownership in USPI to 95 percent, and $114 million of cash to retire $118 million of debt through open market purchases.

Reconciliations of net cash provided by operating activities to both Free Cash Flow and Adjusted Free Cash Flow are contained in Table #3 at the end of this release.

Outlook

The Company’s revised Outlook for 2018 includes a $37 million reduction, at the midpoint, in net income from continuing operations available to Tenet common shareholders and a $50 million reduction, at the midpoint, to Adjusted EBITDA. The Adjusted EBITDA revision reflects the following:

• Hospital Operations and other segment: Reducing the midpoint of the Adjusted EBITDA Outlook by $60 million to a new range of $1.385 billion to $1.415 billion to include: (i) approximately $25 million of losses on risk-based capitated contracts in California, primarily due to adverse claims experience trends; (ii) lower volume and payer mix expectations; and (iii) increased malpractice expense to settle various cases; the date of loss on many of these cases occurred more than five years ago.
• Ambulatory Care segment: Increasing the midpoint of the Adjusted EBITDA Outlook by $10 million to a new range of $790 million to $800 million.
• Conifer segment: Maintaining the Adjusted EBITDA Outlook range of $350 million to $360 million.

Other components of the Company’s Outlook for 2018 include:

• Revenue of $18.1 billion to $18.3 billion,
• Net income from continuing operations available to Tenet common shareholders of $84 million to $144 million,
• Adjusted EBITDA of $2.525 billion to $2.575 billion,
• Net cash provided by operating activities of $1.060 billion to $1.335 billion,
• Adjusted Free Cash Flow of $600 million to $800 million,
• Diluted earnings per share from continuing operations of $0.81 to $1.38, and
• Adjusted diluted earnings per share from continuing operations of $1.44 to $1.83.

The Outlook for 2018 assumes equity in earnings of unconsolidated affiliates of $150 million to $160 million, net income available to noncontrolling interests of $365 million to $385 million and an average diluted share count of 104 million.

The Company’s Outlook for the fourth quarter of 2018 includes:

• Revenue of $4.420 billion to $4.620 billion,
• Net income available (loss attributable) from continuing operations to Tenet common shareholders ranging from a loss of $29 million to income of $31 million,
• Adjusted EBITDA of $649 million to $699 million,
• Diluted earnings (loss) per share from continuing operations ranging from a loss of $0.28 to earnings of $0.30, and
• Adjusted diluted earnings per share from continuing operations ranging from $0.10 to $0.48.

The Outlook for the fourth quarter assumes equity in earnings of unconsolidated affiliates of $53 million to $63 million, net income available to noncontrolling interests of $117 million to $137 million, and an average diluted share count of 105 million.

Additional details on Tenet’s Outlook for both the fourth quarter and calendar year 2018 are available in Tables #4, #5 and #6 at the end of this press release and in an accompanying slide presentation that is accessible through the Company’s website at www.tenethealth.com/investors.

Management’s Webcast Discussion of Third Quarter Results

Tenet management will discuss the Company’s third quarter 2018 results on a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on November 6, 2018. Investors can access the webcast through the Company’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 period ended September 30, 2018, which will be filed with the Securities and Exchange Commission and posted on the Company’s website.

This press release includes certain non-GAAP measures, such as Adjusted EBITDA, Adjusted net income available (loss attributable) from continuing operations to Tenet common shareholders, Adjusted diluted earnings (loss) per share from continuing operations, Free Cash Flow and Adjusted Free Cash Flow. Reconciliations of these measures to the most comparable GAAP measures are contained in the tables at the end of this release.

Tenet Healthcare Corporation is a diversified healthcare services company with 115,000 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. 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,” “anticipate,” “assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “target,” 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, 2017, and subsequent Form 10-Q filings 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.

TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in millions except per share amounts)		Three Months Ended September 30,
		2018				%			2017				%			Change
Net operating revenues:
Net operating revenues before provision for doubtful accounts									$	4,941
Less: Provision for doubtful accounts									355
Net operating revenues		$	4,489			100.0	%		4,586				100.0	%		(2.1	)%
Equity in earnings of unconsolidated affiliates		33				0.7	%		38				0.8	%		(13.2	)%
Operating expenses:
Salaries, wages and benefits		2,116				47.1	%		2,264				49.4	%		(6.5	)%
Supplies		726				16.2	%		740				16.1	%		(1.9	)%
Other operating expenses, net		1,094				24.4	%		1,120				24.4	%		(2.3	)%
Electronic health record incentives		—				—	%		(1		)		—	%		(100.0	)%
Depreciation and amortization		204				4.5	%		219				4.8	%
Impairment and restructuring charges, and acquisition-related costs		46				1.0	%		329				7.2	%
Litigation and investigation costs		9				0.2	%		6				0.1	%
Net losses (gains) on sales, consolidation and deconsolidation of facilities		7				0.2	%		(104		)		(2.3	)%
Operating income		320				7.1	%		51				1.1	%
Interest expense		(249		)					(257		)
Other non-operating expense, net		—							(4		)
Loss from early extinguishment of debt		—							(138		)
Income (loss) from continuing operations, before income taxes		71							(348		)
Income tax benefit (expense)		(6		)					60
Income (loss) from continuing operations, before discontinued operations		65							(288		)
Discontinued operations:
Income (loss) from operations		—							(1		)
Income tax benefit (expense)		—							—
Income (loss) from discontinued operations		—							(1		)
Net income (loss)		65							(289		)
Less: Net income available to noncontrolling interests		74							78
Net loss attributable to Tenet Healthcare Corporation common shareholders		$	(9	)					$	(367	)
Amounts attributable to Tenet Healthcare Corporation common shareholders
Loss from continuing operations, net of tax		$	(9	)					$	(366	)
Loss from discontinued operations, net of tax		—							(1		)
Net loss attributable to Tenet Healthcare Corporation common shareholders		$	(9	)					$	(367	)
Earnings (loss) per share available (attributable) to Tenet Healthcare Corporation common shareholders:
Basic
Continuing operations		$	(0.09	)					$	(3.63	)
Discontinued operations		—							(0.01		)
		$	(0.09	)					$	(3.64	)
Diluted
Continuing operations		$	(0.09	)					$	(3.63	)
Discontinued operations		—							(0.01		)
		$	(0.09	)					$	(3.64	)
Weighted average shares and dilutive securities outstanding (in thousands):
Basic		102,402							100,812
Diluted*		102,402							100,812

*	Had we generated income from continuing operations available to common shareholders in the three months ended September 30, 2018 and 2017 the effect of employee stock options, restricted stock units and deferred compensation units on the diluted shares calculation would have been an increase of 2,173 thousand and 711 thousand shares, respectively.

TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in millions except per share amounts)		Nine Months Ended September 30,
		2018				%			2017				%			Change
Net operating revenues:
Net operating revenues before provision for doubtful accounts									$	15,310
Less: Provision for doubtful accounts									1,109
Net operating revenues		$	13,694			100.0	%		14,201				100.0	%		(3.6	)%
Equity in earnings of unconsolidated affiliates		97				0.7	%		95				0.7	%		2.1	%
Operating expenses:
Salaries, wages and benefits		6,478				47.3	%		6,990				49.3	%		(7.3	)%
Supplies		2,248				16.4	%		2,285				16.1	%		(1.6	)%
Other operating expenses, net		3,181				23.2	%		3,466				24.4	%		(8.2	)%
Electronic health record incentives		(1		)		—	%		(8		)		(0.1	)%		(87.5	)%
Depreciation and amortization		602				4.4	%		662				4.7	%
Impairment and restructuring charges, and acquisition-related costs		123				0.9	%		403				2.8	%
Litigation and investigation costs		28				0.2	%		12				0.1	%
Net gains on sales, consolidation and deconsolidation of facilities		(111		)		(0.8	)%		(142		)		(1.0	)%
Operating income		1,243				9.1	%		628				4.4	%
Interest expense		(758		)					(775		)
Other non-operating expense, net		(2		)					(14		)
Loss from early extinguishment of debt		(2		)					(164		)
Income (loss) from continuing operations, before income taxes		481							(325		)
Income tax benefit (expense)		(120		)					105
Income (loss) from continuing operations, before discontinued operations		361							(220		)
Discontinued operations:
Income (loss) from operations		3							(1		)
Income tax benefit (expense)		—							—
Income (loss) from discontinued operations		3							(1		)
Net income (loss)		364							(221		)
Less: Net income available to noncontrolling interests		248							254
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	116						$	(475	)
Amounts available (attributable) to Tenet Healthcare Corporation common shareholders
Income (loss) from continuing operations, net of tax		$	113						$	(474	)
Income (loss) from discontinued operations, net of tax		3							(1		)
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	116						$	(475	)
Earnings (loss) per share available (attributable) to Tenet Healthcare Corporation common shareholders:
Basic
Continuing operations		$	1.11						$	(4.72	)
Discontinued operations		0.03							(0.01		)
		$	1.14						$	(4.73	)
Diluted
Continuing operations		$	1.09						$	(4.72	)
Discontinued operations		0.03							(0.01		)
		$	1.12						$	(4.73	)
Weighted average shares and dilutive securities outstanding (in thousands):
Basic		101,980							100,475
Diluted*		103,802							100,475

*	Had we generated income from continuing operations available to common shareholders in the nine months ended September 30, 2017 the effect of employee stock options, restricted stock units and deferred compensation units on the diluted shares calculation would have been an increase of 747 thousand shares.

TENET HEALTHCARE CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited)
		September 30,				December 31,
(Dollars in millions)		2018				2017
ASSETS
Current assets:
Cash and cash equivalents		$	500			$	611
Accounts receivable, less allowance for doubtful accounts		2,484				2,616
Inventories of supplies, at cost		307				289
Income tax receivable		27				5
Assets held for sale		128				1,017
Other current assets		1,046				1,035
Total current assets		4,492				5,573
Investments and other assets		1,462				1,543
Deferred income taxes		348				455
Property and equipment, at cost, less accumulated depreciation and amortization		6,888				7,030
Goodwill		7,313				7,018
Other intangible assets, at cost, less accumulated amortization		1,762				1,766
Total assets		$	22,265			$	23,385
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt		$	672			$	146
Accounts payable		1,065				1,175
Accrued compensation and benefits		814				848
Professional and general liability reserves		230				200
Accrued interest payable		330				256
Liabilities held for sale		71				480
Other current liabilities		1,042				1,227
Total current liabilities		4,224				4,332
Long-term debt, net of current portion		14,178				14,791
Professional and general liability reserves		627				654
Defined benefit plan obligations		476				536
Deferred income taxes		36				36
Other long-term liabilities		622				631
Total liabilities		20,163				20,980
Commitments and contingencies
Redeemable noncontrolling interests in equity of consolidated subsidiaries		1,444				1,866
Equity:
Shareholders’ equity:
Common stock		7				7
Additional paid-in capital		4,733				4,859
Accumulated other comprehensive loss		(202		)		(204		)
Accumulated deficit		(2,231		)		(2,390		)
Common stock in treasury, at cost		(2,415		)		(2,419		)
Total shareholders’ deficit		(108		)		(147		)
Noncontrolling interests		766				686
Total equity		658				539
Total liabilities and equity		$	22,265			$	23,385

TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
		Nine Months Ended
(Dollars in millions)		September 30,
		2018				2017
Net income (loss)		$	364			$	(221	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		602				662
Provision for doubtful accounts		—				1,109
Deferred income tax expense (benefit)		110				(145		)
Stock-based compensation expense		34				44
Impairment and restructuring charges, and acquisition-related costs		123				403
Litigation and investigation costs		28				12
Net gains on sales, consolidation and deconsolidation of facilities		(111		)		(142		)
Loss from early extinguishment of debt		2				164
Equity in earnings of unconsolidated affiliates, net of distributions received		9				(4		)
Amortization of debt discount and debt issuance costs		33				33
Pre-tax loss (income) from discontinued operations		(3		)		1
Other items, net		(22		)		(19		)
Changes in cash from operating assets and liabilities:
Accounts receivable		(36		)		(1,046		)
Inventories and other current assets		73				97
Income taxes		(14		)		(14		)
Accounts payable, accrued expenses and other current liabilities		(194		)		(141		)
Other long-term liabilities		(82		)		7
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements		(113		)		(88		)
Net cash used in operating activities from discontinued operations, excluding income taxes		(4		)		(3		)
Net cash provided by operating activities		799				709
Cash flows from investing activities:
Purchases of property and equipment — continuing operations		(404		)		(492		)
Purchases of businesses or joint venture interests, net of cash acquired		(97		)		(41		)
Proceeds from sales of facilities and other assets		498				826
Proceeds from sales of marketable securities, long-term investments and other assets		165				20
Purchases of equity investments		(43		)		(64		)
Other long-term assets		5				(16		)
Other items, net		(4		)		(6		)
Net cash provided by investing activities		120				227
Cash flows from financing activities:
Repayments of borrowings under credit facility		(505		)		(850		)
Proceeds from borrowings under credit facility		505				850
Repayments of other borrowings		(238		)		(4,099		)
Proceeds from other borrowings		15				3,788
Debt issuance costs		—				(62		)
Distributions paid to noncontrolling interests		(217		)		(178		)
Proceeds from sale of noncontrolling interests		14				29
Purchases of noncontrolling interests		(643		)		(722		)
Proceeds from exercise of stock options and employee stock purchase plan		15				5
Other items, net		24				16
Net cash used in financing activities		(1,030		)		(1,223		)
Net decrease in cash and cash equivalents		(111		)		(287		)
Cash and cash equivalents at beginning of period		611				716
Cash and cash equivalents at end of period		$	500			$	429
Supplemental disclosures:
Interest paid, net of capitalized interest		$	(652	)		$	(617	)
Income tax refunds (payments), net		$	(24	)		$	(54	)

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day		Three Months Ended September 30,											Nine Months Ended September 30,
and per adjusted patient admission amounts)		2018				2017				Change			2018				2017				Change
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		68				73				(5	)	*	68				73				(5	)	*
Total admissions		168,201				185,389				(9.3	)%		518,960				572,690				(9.4	)%
Adjusted patient admissions		306,197				332,035				(7.8	)%		933,128				1,021,624				(8.7	)%
Paying admissions (excludes charity and uninsured)		157,193				174,803				(10.1	)%		487,899				541,340				(9.9	)%
Charity and uninsured admissions		11,008				10,586				4.0	%		31,061				31,350				(0.9	)%
Admissions through emergency department		116,727				120,493				(3.1	)%		356,839				368,773				(3.2	)%
Paying admissions as a percentage of total admissions		93.5		%		94.3		%		(0.8	)%	*	94.0		%		94.5		%		(0.5	)%	*
Charity and uninsured admissions as a percentage of total admissions		6.5		%		5.7		%		0.8	%	*	6.0		%		5.5		%		0.5	%	*
Emergency department admissions as a percentage of total admissions		69.4		%		65.0		%		4.4	%	*	68.8		%		64.4		%		4.4	%	*
Surgeries — inpatient		45,626				50,939				(10.4	)%		139,123				154,822				(10.1	)%
Surgeries — outpatient		61,468				67,321				(8.7	)%		188,281				208,291				(9.6	)%
Total surgeries		107,094				118,260				(9.4	)%		327,404				363,113				(9.8	)%
Patient days — total		761,920				853,059				(10.7	)%		2,387,087				2,651,328				(10.0	)%
Adjusted patient days		1,365,662				1,502,831				(9.1	)%		4,225,281				4,658,831				(9.3	)%
Average length of stay (days)		4.53				4.60				(1.5	)%		4.60				4.63				(0.6	)%
Licensed beds (at end of period)		18,302				19,433				(5.8	)%		18,302				19,433				(5.8	)%
Average licensed beds		18,302				19,783				(7.5	)%		18,450				20,218				(8.7	)%
Utilization of licensed beds		45.3		%		46.9		%		(1.6	)%	*	47.4		%		48.1		%		(0.7	)%	*
Outpatient Visits
Total visits		1,722,292				1,867,471				(7.8	)%		5,314,678				5,889,261				(9.8	)%
Paying visits (excludes charity and uninsured)		1,607,184				1,741,815				(7.7	)%		4,966,532				5,499,724				(9.7	)%
Charity and uninsured visits		115,108				125,656				(8.4	)%		348,146				389,537				(10.6	)%
Emergency department visits		638,248				685,096				(6.8	)%		1,978,285				2,142,932				(7.7	)%
Paying visits as a percentage of total visits		93.3		%		93.3		%		—	%	*	93.4		%		93.4		%		—	%	*
Charity and uninsured visits as a percentage of total visits		6.7		%		6.7		%		—	%	*	6.6		%		6.6		%		—	%	*
Total emergency department admissions and visits		754,975				805,589				(6.3	)%		2,335,124				2,511,705				(7.0	)%
Revenues
Net patient revenues(3)		$	3,434			$	3,522			(2.5	)%		$	10,520			$	10,969			(4.1	)%
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient revenue(3) per adjusted patient admission		$	11,215			$	10,607			5.7	%		$	11,274			$	10,737			5.0	%
Net patient revenue(3) per adjusted patient day		$	2,515			$	2,344			7.3	%		$	2,490			$	2,354			5.8	%
Total selected operating expenses (salaries, wages and benefits, supplies and other operating expenses) per adjusted patient admission(2)		$	10,771			$	10,367			3.9	%		$	10,648			$	10,348			2.9	%
Net Patient Revenues (3) from:
Medicare		19.8		%		22.0		%		(2.2	)%	*	20.6		%		22.4		%		(1.8	)%	*
Medicaid		9.8		%		7.1		%		2.7	%	*	9.2		%		7.4		%		1.8	%	*
Managed care		64.9		%		66.1		%		(1.2	)%	*	65.3		%		65.7		%		(0.4	)%	*
Self-pay		0.9		%		0.3		%		0.6	%	*	0.7		%		0.4		%		0.3	%	*
Indemnity and other		4.6		%		4.5		%		0.1	%	*	4.2		%		4.1		%		0.1	%	*

(1)	Represents the consolidated results of Tenet’s acute care hospitals and related outpatient facilities included in the Hospital Operations and other segment.
(2)	Excludes operating expenses from Tenet's health plans.
(3)	Less implicit price concessions and provision for doubtful accounts.
*	This change is the difference between the 2018 and 2017 amounts shown.

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day		Three Months Ended September 30,											Nine Months Ended September 30,
and per adjusted patient admission amounts)		2018				2017				Change			2018				2017				Change
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		68				68				—			68				68				—		*
Total admissions		168,202				171,766				(2.1	)%		514,526				521,438				(1.3	)%
Adjusted patient admissions		306,199				305,300				0.3	%		924,037				921,715				0.3	%
Paying admissions (excludes charity and uninsured)		157,197				161,743				(2.8	)%		483,655				492,896				(1.9	)%
Charity and uninsured admissions		11,005				10,023				9.8	%		30,871				28,542				8.2	%
Admissions through emergency department		116,727				112,210				4.0	%		354,594				337,463				5.1	%
Paying admissions as a percentage of total admissions		93.5		%		94.2		%		(0.7	)%		94.0		%		94.5		%		(0.5	)%	*
Charity and uninsured admissions as a percentage of total admissions		6.5		%		5.8		%		0.7	%		6.0		%		5.5		%		0.5	%	*
Emergency department admissions as a percentage of total admissions		69.4		%		65.3		%		4.1	%		68.9		%		64.7		%		4.2	%	*
Surgeries — inpatient		45,626				47,315				(3.6	)%		137,623				141,503				(2.7	)%
Surgeries — outpatient		61,468				61,562				(0.2	)%		186,132				187,316				(0.6	)%
Total surgeries		107,094				108,877				(1.6	)%		323,755				328,819				(1.5	)%
Patient days — total		761,921				789,040				(3.4	)%		2,368,366				2,414,961				(1.9	)%
Adjusted patient days		1,365,664				1,379,096				(1.0	)%		4,186,068				4,203,108				(0.4	)%
Average length of stay (days)		4.53				4.59				(1.3	)%		4.60				4.63				(0.6	)%
Licensed beds (at end of period)		17,934				18,006				(0.4	)%		17,934				18,006				(0.4	)%
Average licensed beds		17,934				18,007				(0.4	)%		17,942				17,983				(0.2	)%
Utilization of licensed beds		46.2		%		47.6		%		(1.4	)%		48.4		%		49.2		%		(0.8	)%	*
Outpatient Visits
Total visits		1,722,292				1,715,650				0.4	%		5,264,505				5,293,076				(0.5	)%
Paying visits (excludes charity and uninsured)		1,607,180				1,600,195				0.4	%		4,919,392				4,951,644				(0.7	)%
Charity and uninsured visits		115,112				115,455				(0.3	)%		345,113				341,432				1.1	%
Emergency department visits		638,248				627,415				1.7	%		1,963,474				1,923,995				2.1	%
Paying visits as a percentage of total visits		93.3		%		93.3		%		—	%		93.4		%		93.5		%		(0.1	)%	*
Charity and uninsured visits as a percentage of total visits		6.7		%		6.7		%		—	%		6.6		%		6.5		%		0.1	%	*
Total emergency department admissions and visits		754,975				739,625				2.1	%		2,318,068				2,261,458				2.5	%
Revenues
Net patient revenues(2)		$	3,432			$	3,237			6.0	%		$	10,434			$	9,905			5.3	%
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient revenue(2) per adjusted patient admission		$	11,208			$	10,603			5.7	%		$	11,292			$	10,746			5.1	%
Net patient revenue(2) per adjusted patient day		$	2,513			$	2,347			7.1	%		$	2,493			$	2,357			5.8	%
Net Patient Revenues (2) from:
Medicare		19.8		%		21.9		%		(2.1	)%		20.5		%		22.6		%		(2.1	)%	*
Medicaid		9.8		%		6.8		%		3.0	%		9.2		%		7.0		%		2.2	%	*
Managed care		64.9		%		66.1		%		(1.2	)%		65.3		%		65.6		%		(0.3	)%	*
Self-pay		0.9		%		0.3		%		0.6	%		0.8		%		0.4		%		0.4	%	*
Indemnity and other		4.6		%		4.9		%		(0.3	)%		4.2		%		4.4		%		(0.2	)%	*

(1)	Information for our Hospital Operations and other segment is presented on a same-hospital basis, which includes the results of our same 68 hospitals operated throughout the nine months ended September 30, 2018 and 2017 and associated outpatient facilities, but excludes the results of hospitals Tenet divested since January 1, 2017.
(2)	Less implicit price concessions and provision for doubtful accounts.
*	This change is the difference between the 2018 and 2017 amounts shown.

TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in millions except per share amounts)		Three Months Ended											Nine Months Ended
		3/31/2018				6/30/2018			9/30/2018				9/30/2018
Net operating revenues		$	4,699			$	4,506		$	4,489			$	13,694
Equity in earnings of unconsolidated affiliates		25				39			33				97
Operating expenses:
Salaries, wages and benefits		2,227				2,135			2,116				6,478
Supplies		774				748			726				2,248
Other operating expenses, net		1,060				1,027			1,094				3,181
Electronic health record incentives		(1		)		—			—				(1		)
Depreciation and amortization		204				194			204				602
Impairment and restructuring charges, and acquisition-related costs		47				30			46				123
Litigation and investigation costs		6				13			9				28
Net losses (gains) on sales, consolidation and deconsolidation of facilities		(110		)		(8		)	7				(111		)
Operating income		517				406			320				1,243
Interest expense		(255		)		(254		)	(249		)		(758		)
Other non-operating expense, net		(1		)		(1		)	—				(2		)
Loss from early extinguishment of debt		(1		)		(1		)	—				(2		)
Income from continuing operations, before income taxes		260				150			71				481
Income tax expense		(70		)		(44		)	(6		)		(120		)
Income from continuing operations, before discontinued operations		190				106			65				361
Discontinued operations:
Income from operations		1				2			—				3
Income tax benefit (expense)		—				—			—				—
Income from discontinued operations		1				2			—				3
Net income		191				108			65				364
Less: Net income available to noncontrolling interests		92				82			74				248
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	99			$	26		$	(9	)		$	116
Amounts available (attributable) to Tenet Healthcare Corporation common shareholders
Income (loss) from continuing operations, net of tax		$	98			$	24		$	(9	)		$	113
Income from discontinued operations, net of tax		1				2			—				3
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	99			$	26		$	(9	)		$	116
Earnings (loss) per share available (attributable) to Tenet Healthcare Corporation common shareholders:
Basic
Continuing operations		$	0.97			$	0.23		$	(0.09	)		$	1.11
Discontinued operations		0.01				0.02			—				0.03
		$	0.98			$	0.25		$	(0.09	)		$	1.14
Diluted
Continuing operations		$	0.95			$	0.23		$	(0.09	)		1.09
Discontinued operations		0.01				0.02			—				$	0.03
		$	0.96			$	0.25		$	(0.09	)		$	1.12
Weighted average shares and dilutive securities outstanding (in thousands):
Basic		101,392				102,147			102,402				101,980
Diluted		102,656				104,177			102,402				103,802

TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in millions except per share amounts)		Three Months Ended																Year Ended
		3/31/2017				6/30/2017				9/30/2017				12/31/2017				12/31/2017
Net operating revenues:
Net operating revenues before provision for doubtful accounts		$	5,196			$	5,173			$	4,941			$	5,303			$	20,613
Less: Provision for doubtful accounts		383				371				355				325				1,434
Net operating revenues		4,813				4,802				4,586				4,978				19,179
Equity in earnings of unconsolidated affiliates		29				28				38				49				144
Operating expenses:
Salaries, wages and benefits		2,380				2,346				2,264				2,284				9,274
Supplies		765				780				740				800				3,085
Other operating expenses, net		1,187				1,159				1,120				1,104				4,570
Electronic health record incentives		(1		)		(6		)		(1		)		(1		)		(9		)
Depreciation and amortization		221				222				219				208				870
Impairment and restructuring charges, and acquisition-related costs		33				41				329				138				541
Litigation and investigation costs		5				1				6				11				23
Net gains on sales, consolidation and deconsolidation of facilities		(15		)		(23		)		(104		)		(2		)		(144		)
Operating income		267				310				51				485				1,113
Interest expense		(258		)		(260		)		(257		)		(253		)		(1,028		)
Other non-operating expense, net		(5		)		(5		)		(4		)		(8		)		(22		)
Loss from early extinguishment of debt		—				(26		)		(138		)		—				(164		)
Income (loss) from continuing operations, before income taxes		4				19				(348		)		224				(101		)
Income tax benefit (expense)		33				12				60				(324		)		(219		)
Income (loss) from continuing operations, before discontinued operations		37				31				(288		)		(100		)		(320		)
Discontinued operations:
Income (loss) from operations		(2		)		2				(1		)		1				—
Income tax benefit (expense)		1				(1		)		—				—				—
Income (loss) from discontinued operations		(1		)		1				(1		)		1				—
Net income (loss)		36				32				(289		)		(99		)		(320		)
Less: Net income available to noncontrolling interests		89				87				78				130				384
Net loss attributable to Tenet Healthcare Corporation common shareholders		$	(53	)		$	(55	)		$	(367	)		$	(229	)		$	(704	)
Amounts available (attributable) to Tenet Healthcare Corporation common shareholders
Loss from continuing operations, net of tax		$	(52	)		$	(56	)		$	(366	)		$	(230	)		$	(704	)
Income (loss) from discontinued operations, net of tax		(1		)		1				(1		)		1				—
Net loss attributable to Tenet Healthcare Corporation common shareholders		$	(53	)		$	(55	)		$	(367	)		$	(229	)		$	(704	)
Earnings (loss) per share available (attributable) to Tenet Healthcare Corporation common shareholders:
Basic
Continuing operations		$	(0.52	)		$	(0.56	)		$	(3.63	)		$	(2.28	)		$	(7.00	)
Discontinued operations		(0.01		)		0.01				(0.01		)		0.01				—
		$	(0.53	)		$	(0.55	)		$	(3.64	)		$	(2.27	)		$	(7.00	)
Diluted
Continuing operations		$	(0.52	)		$	(0.56	)		$	(3.63	)		$	(2.28	)		$	(7.00	)
Discontinued operations		(0.01		)		0.01				(0.01		)		0.01				—
		$	(0.53	)		$	(0.55	)		$	(3.64	)		$	(2.27	)		$	(7.00	)
Weighted average shares and dilutive securities outstanding (in thousands):
Basic		100,000				100,612				100,812				100,945				100,592
Diluted		100,000				100,612				100,812				100,945				100,592

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day and per adjusted patient admission amounts)
		Three Months Ended											Nine Months Ended
		3/31/2018				6/30/2018			9/30/2018				09/30/2018
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		69				68			68				68
Total admissions		182,306				168,453			168,201				518,960
Adjusted patient admissions		320,868				306,063			306,197				933,128
Paying admissions (excludes charity and uninsured)		172,490				158,216			157,193				487,899
Charity and uninsured admissions		9,816				10,237			11,008				31,061
Admissions through emergency department		125,076				115,036			116,727				356,839
Paying admissions as a percentage of total admissions		94.6		%		93.9		%	93.5		%		94.0		%
Charity and uninsured admissions as a percentage of total admissions		5.4		%		6.1		%	6.5		%		6.0		%
Emergency department admissions as a percentage of total admissions		68.6		%		68.3		%	69.4		%		68.8		%
Surgeries — inpatient		47,223				46,274			45,626				139,123
Surgeries — outpatient		63,008				63,805			61,468				188,281
Total surgeries		110,231				110,079			107,094				327,404
Patient days — total		858,648				766,519			761,920				2,387,087
Adjusted patient days		1,486,139				1,373,480			1,365,662				4,225,281
Average length of stay (days)		4.71				4.55			4.53				4.60
Licensed beds (at end of period)		18,457				18,314			18,302				18,302
Average licensed beds		18,685				18,362			18,302				18,450
Utilization of licensed beds		51.1		%		45.9		%	45.3		%		47.4		%
Outpatient Visits
Total visits		1,842,539				1,749,847			1,722,292				5,314,678
Paying visits (excludes charity and uninsured)		1,725,976				1,633,372			1,607,184				4,966,532
Charity and uninsured visits		116,563				116,475			115,108				348,146
Emergency department visits		697,001				643,036			638,248				1,978,285
Paying visits as a percentage of total visits		93.7		%		93.3		%	93.3		%		93.4		%
Charity and uninsured visits as a percentage of total visits		6.3		%		6.7		%	6.7		%		6.6		%
Total emergency department admissions and visits		822,077				758,072			754,975				2,335,124
Revenues
Net patient revenues(3)		$	3,643			$	3,443		$	3,434			$	10,520
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient revenue(3) per adjusted patient admission		$	11,354			$	11,249		$	11,215			$	11,274
Net patient revenue(3) per adjusted patient day		$	2,451			$	2,507		$	2,515			$	2,490
Total selected operating expenses (salaries, wages and benefits, supplies and other operating expenses) per adjusted patient admission(2)		$	10,561			$	10,619		$	10,771			$	10,648
Net Patient Revenues (3) from:
Medicare		21.5		%		20.4		%	19.8		%		20.6		%
Medicaid		8.8		%		9.1		%	9.8		%		9.2		%
Managed care		65.0		%		66.0		%	64.9		%		65.3		%
Self-pay		1.0		%		0.2		%	0.9		%		0.7		%
Indemnity and other		3.7		%		4.3		%	4.6		%		4.2		%

(1)	Represents the consolidated results of Tenet’s acute care hospitals and related outpatient facilities included in the Hospital Operations and other segment.
(2)	Excludes operating expenses from Tenet's health plans.
(3)	Less implicit price concessions and provision for doubtful accounts.

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day and per adjusted patient admission amounts)
		Three Months Ended																Year Ended
		3/31/2017				6/30/2017				9/30/2017				12/31/2017				12/31/2017
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		76				76				73				72				72
Total admissions		196,907				190,394				185,389				186,185				758,875
Adjusted patient admissions		347,150				342,439				332,035				332,642				1,354,266
Paying admissions (excludes charity and uninsured)		186,648				179,889				174,803				176,158				717,498
Charity and uninsured admissions		10,259				10,505				10,586				10,027				41,377
Admissions through emergency department		126,473				121,807				120,493				123,887				492,660
Paying admissions as a percentage of total admissions		94.8		%		94.5		%		94.3		%		94.6		%		94.5		%
Charity and uninsured admissions as a percentage of total admissions		5.2		%		5.5		%		5.7		%		5.4		%		5.5		%
Emergency department admissions as a percentage of total admissions		64.2		%		64.0		%		65.0		%		66.5		%		64.9		%
Surgeries — inpatient		51,800				52,083				50,939				50,292				205,114
Surgeries — outpatient		69,604				71,366				67,321				68,604				276,895
Total surgeries		121,404				123,449				118,260				118,896				482,009
Patient days — total		923,339				874,930				853,059				857,728				3,509,056
Adjusted patient days		1,603,698				1,552,302				1,502,831				1,505,130				6,163,961
Average length of stay (days)		4.69				4.60				4.60				4.61				4.62
Licensed beds (at end of period)		20,439				20,435				19,433				19,141				19,141
Average licensed beds		20,440				20,435				19,783				19,320				19,995
Utilization of licensed beds		50.2		%		47.0		%		46.9		%		48.3		%		48.1		%
Outpatient Visits
Total visits		2,039,942				1,981,848				1,867,471				1,901,864				7,791,125
Paying visits (excludes charity and uninsured)		1,908,212				1,849,697				1,741,815				1,777,790				7,277,514
Charity and uninsured visits		131,730				132,151				125,656				124,074				513,611
Emergency department visits		733,051				724,785				685,096				711,268				2,854,200
Paying visits as a percentage of total visits		93.5		%		93.3		%		93.3		%		93.5		%		93.4		%
Charity and uninsured visits as a percentage of total visits		6.5		%		6.7		%		6.7		%		6.5		%		6.6		%
Total emergency department admissions and visits		859,524				846,592				805,589				835,155				3,346,860
Revenues
Net patient revenues(3)		$	3,728			$	3,719			$	3,522			$	3,860			$	14,829
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient revenue(3) per adjusted patient admission		$	10,739			$	10,860			$	10,607			$	11,604			$	10,950
Net patient revenue(3) per adjusted patient day		$	2,325			$	2,396			$	2,344			$	2,565			$	2,406
Total selected operating expenses (salaries, wages and benefits, supplies and other operating expenses) per adjusted patient admission(2)		$	10,288			$	10,394			$	10,367			$	10,492			$	10,384
Net Patient Revenues (3) from:
Medicare		23.1		%		22.0		%		22.0		%		20.4		%		21.9		%
Medicaid		7.4		%		7.5		%		7.1		%		12.9		%		8.8		%
Managed care		65.2		%		65.9		%		66.1		%		61.5		%		64.6		%
Self-pay		0.3		%		0.5		%		0.3		%		1.3		%		0.6		%
Indemnity and other		4.0		%		4.1		%		4.5		%		3.9		%		4.1		%

(1)	Represents the consolidated results of Tenet’s acute care hospitals and related outpatient facilities included in the Hospital Operations and other segment.
(2)	Excludes operating expenses from Tenet's health plans.
(3)	Less implicit price concessions and provision for doubtful accounts.

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day and per adjusted patient admission amounts)
		Three Months Ended											Nine Months Ended
		3/31/2018				6/30/2018			9/30/2018				9/30/2018
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		68				68			68				68
Total admissions		178,189				168,135			168,202				514,526
Adjusted patient admissions		312,297				305,541			306,199				924,037
Paying admissions (excludes charity and uninsured)		168,554				157,904			157,197				483,655
Charity and uninsured admissions		9,635				10,231			11,005				30,871
Admissions through emergency department		122,922				114,945			116,727				354,594
Paying admissions as a percentage of total admissions		94.6		%		93.9		%	93.5		%		94.0		%
Charity and uninsured admissions as a percentage of total admissions		5.4		%		6.1		%	6.5		%		6.0		%
Emergency department admissions as a percentage of total admissions		69.0		%		68.4		%	69.4		%		68.9		%
Surgeries — inpatient		45,940				46,057			45,626				137,623
Surgeries — outpatient		61,049				63,615			61,468				186,132
Total surgeries		106,989				109,672			107,094				323,755
Patient days — total		840,786				765,659			761,921				2,368,366
Adjusted patient days		1,448,356				1,372,048			1,365,664				4,186,068
Average length of stay (days)		4.72				4.55			4.53				4.60
Licensed beds (at end of period)		17,946				17,946			17,934				17,934
Average licensed beds		17,946				17,946			17,934				17,942
Utilization of licensed beds		52.1		%		46.9		%	46.2		%		48.4		%
Outpatient Visits
Total visits		1,793,901				1,748,312			1,722,292				5,264,505
Paying visits (excludes charity and uninsured)		1,680,249				1,631,963			1,607,180				4,919,392
Charity and uninsured visits		113,652				116,349			115,112				345,113
Emergency department visits		682,603				642,623			638,248				1,963,474
Paying visits as a percentage of total visits		93.7		%		93.3		%	93.3		%		93.4		%
Charity and uninsured visits as a percentage of total visits		6.3		%		6.7		%	6.7		%		6.6		%
Total emergency department admissions and visits		805,525				757,568			754,975				2,318,068
Revenues
Net patient revenues(2)		$	3,570			$	3,432		$	3,432			$	10,434
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient revenue(2) per adjusted patient admission		$	11,431			$	11,233		$	11,208			$	11,292
Net patient revenue(2) per adjusted patient day		$	2,465			$	2,501		$	2,513			$	2,493
Net Patient Revenues (2) from:
Medicare		21.3		%		20.4		%	19.8		%		20.5		%
Medicaid		8.8		%		9.1		%	9.8		%		9.2		%
Managed care		64.9		%		66.1		%	64.9		%		65.3		%
Self-pay		1.3		%		0.1		%	0.9		%		0.8		%
Indemnity and other		3.7		%		4.3		%	4.6		%		4.2		%

(1)	Information for our Hospital Operations and other segment is presented on a same-hospital basis, which includes the results of our same 68 hospitals operated throughout the nine months ended September 30, 2018 and 2017 and associated outpatient facilities, but excludes the results of hospitals Tenet divested since January 1, 2017.
(2)	Less implicit price concessions and provision for doubtful accounts.

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day and per adjusted patient admission amounts)
		Three Months Ended																Year Ended
		3/31/2017				6/30/2017				9/30/2017				12/31/2017				12/31/2017
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		68				68				68				68				68
Total admissions		177,624				172,048				171,766				175,152				696,590
Adjusted patient admissions		310,137				306,278				305,300				310,485				1,232,200
Paying admissions (excludes charity and uninsured)		168,523				162,630				161,743				165,400				658,296
Charity and uninsured admissions		9,101				9,418				10,023				9,752				38,294
Admissions through emergency department		114,767				110,486				112,210				116,901				454,364
Paying admissions as a percentage of total admissions		94.9		%		94.5		%		94.2		%		94.4		%		94.5		%
Charity and uninsured admissions as a percentage of total admissions		5.1		%		5.5		%		5.8		%		5.6		%		5.5		%
Emergency department admissions as a percentage of total admissions		64.6		%		64.2		%		65.3		%		66.7		%		65.2		%
Surgeries — inpatient		46,900				47,288				47,315				47,350				188,853
Surgeries — outpatient		62,112				63,642				61,562				63,410				250,726
Total surgeries		109,012				110,930				108,877				110,760				439,579
Patient days — total		833,761				792,160				789,040				805,567				3,220,528
Adjusted patient days		1,433,858				1,390,154				1,379,096				1,402,038				5,605,146
Average length of stay (days)		4.69				4.60				4.59				4.60				4.62
Licensed beds (at end of period)		17,964				17,980				18,006				17,946				17,946
Average licensed beds		17,964				17,980				18,007				17,970				17,980
Utilization of licensed beds		51.6		%		48.4		%		47.6		%		48.7		%		49.1		%
Outpatient Visits
Total visits		1,810,801				1,766,625				1,715,650				1,771,336				7,064,412
Paying visits (excludes charity and uninsured)		1,698,917				1,652,532				1,600,195				1,653,581				6,605,225
Charity and uninsured visits		111,884				114,093				115,455				117,755				459,187
Emergency department visits		650,777				645,803				627,415				659,617				2,583,612
Paying visits as a percentage of total visits		93.8		%		93.5		%		93.3		%		93.4		%		93.5		%
Charity and uninsured visits as a percentage of total visits		6.2		%		6.5		%		6.7		%		6.6		%		6.5		%
Total emergency department admissions and visits		765,544				756,289				739,625				776,518				3,037,976
Revenues
Net patient revenues(2)		$	3,343			$	3,325			$	3,237			$	3,609			$	13,514
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient revenue(2) per adjusted patient admission		$	10,780			$	10,856			$	10,603			$	11,624			$	10,967
Net patient revenue(2) per adjusted patient day		$	2,331			$	2,392			$	2,347			$	2,574			$	2,411
Net Patient Revenues (2) from:
Medicare		23.5		%		22.3		%		21.9		%		20.3		%		21.9		%
Medicaid		7.0		%		7.1		%		6.8		%		13.2		%		8.7		%
Managed care		65.0		%		65.8		%		66.1		%		61.0		%		64.4		%
Self-pay		0.3		%		0.6		%		0.3		%		1.5		%		0.7		%
Indemnity and other		4.2		%		4.2		%		4.9		%		4.0		%		4.3		%

(1)	Information for our Hospital Operations and other segment is presented on a same-hospital basis, which includes the results of our same 68 hospitals operated throughout the nine months ended September 30, 2018 and 2017 and associated outpatient facilities, but excludes the results of hospitals Tenet divested since January 1, 2017.
(2)	Less implicit price concessions and provision for doubtful accounts.

TENET HEALTHCARE CORPORATION SEGMENT REPORTING (Unaudited)
(Dollars in millions)										September 30,				December 31,
										2018				2017
Assets
Hospital Operations and other										$	15,556			$	16,466
Ambulatory Care										5,640				5,822
Conifer										1,069				1,097
Total										$	22,265			$	23,385
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2018				2017				2018				2017
Capital expenditures:
Hospital Operations and other		$	115			$	122			$	343			$	441
Ambulatory Care		18				16				46				37
Conifer		3				6				15				14
Total		$	136			$	144			$	404			$	492
Net operating revenues:
Hospital Operations and other total prior to inter-segment eliminations(1)		$	3,762			$	3,866			$	11,442			$	12,066
Ambulatory Care		502				468				1,531				1,395
Conifer
Tenet		146				149				440				463
Other customers		225				252				721				740
Total Conifer revenues		371				401				1,161				1,203
Inter-segment eliminations		(146		)		(149		)		(440		)		(463		)
Total		$	4,489			$	4,586			$	13,694			$	14,201
Equity in earnings of unconsolidated affiliates:
Hospital Operations and other		$	2			$	4			$	6			$	4
Ambulatory Care		31				34				91				91
Total		$	33			$	38			$	97			$	95
Adjusted EBITDA:
Hospital Operations and other(2)		$	312			$	269			$	1,059			$	924
Ambulatory Care		184				159				547				476
Conifer		81				79				270				204
Total		$	577			$	507			$	1,876			$	1,604
Depreciation and amortization:
Hospital Operations and other		$	175			$	185			$	514			$	560
Ambulatory Care		17				22				51				66
Conifer		12				12				37				36
Total		$	204			$	219			$	602			$	662

(1)	Hospital Operations and other revenues includes health plan revenues of $8 million and $14 million for the three and nine months ended September 30, 2018, respectively and $10 million and $100 million for the three and nine months ended September 30, 2017, respectively.
(2)	Hospital Operations and other Adjusted EBITDA excludes health plan EBITDA of $9 million for both of the three and nine month periods ended September 30, 2018 and $(6) million and $(41) million for the three and nine months ended September 30, 2017, respectively.

TENET HEALTHCARE CORPORATION STATEMENT OF OPERATIONS – AMBULATORY CARE SEGMENT (Unaudited)
(Dollars in millions)		Three Months Ended September 30,
		2018								2017
		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										$	477			$	518
Less: Provision for doubtful accounts										9				11
Net operating revenues (1)		$	502			$	546			468				507
Equity in earnings of unconsolidated affiliates (2)		31				—				34				—
Operating expenses:
Salaries, wages and benefits		157				137				155				122
Supplies		104				143				95				133
Other operating expenses, net		88				114				93				93
Depreciation and amortization		17				18				22				17
Impairment and restructuring charges, and acquisition-related costs		13				—				62				—
Operating income		154				134				75				142
Interest expense		(33		)		(7		)		(35		)		(6		)
Other		3				—				2				—
Net income from continuing operations, before income taxes		124				127				42				136
Income tax expense		(14		)		(2		)		(20		)		(2		)
Net income		110				$	125			22				$	134
Less: Net income available to noncontrolling interests		70								61
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	40							$	(39	)
Equity in earnings of unconsolidated affiliates						$	31							$	34

(1)	On a same-facility system-wide basis, net revenue in Tenet’s Ambulatory Care segment increased 6.7% during the three months ended September 30, 2018, with cases increasing 5.0% and revenue per case increasing 1.6%.
(2)	At September 30, 2018, 107 of the 335 facilities in the Company’s 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 228 facilities and account for these investments as consolidated subsidiaries.

TENET HEALTHCARE CORPORATION STATEMENT OF OPERATIONS – AMBULATORY CARE SEGMENT (Unaudited)
(Dollars in millions)		Nine Months Ended September 30,
		2018								2017
		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										$	1,422			$	1,492
Less: Provision for doubtful accounts										27				31
Net operating revenues (1)		$	1,531			$	1,586			1,395				1,461
Equity in earnings of unconsolidated affiliates (2)		91				—				91				—
Operating expenses:
Salaries, wages and benefits		484				391				458				352
Supplies		316				417				285				383
Other operating expenses, net		275				333				267				290
Depreciation and amortization		51				51				66				49
Impairment and restructuring charges, and acquisition-related costs		20				—				70				1
Net gains on sales, consolidation and deconsolidation of facilities		(1		)		—				(7		)		—
Operating income		477				394				347				386
Interest expense		(106		)		(17		)		(109		)		(17		)
Other		6				1				5				—
Net income from continuing operations, before income taxes		377				378				243				369
Income tax expense		(47		)		(6		)		(58		)		(6		)
Net income		330				$	372			185				$	363
Less: Net income available to noncontrolling interests		209								193
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	121							$	(8	)
Equity in earnings of unconsolidated affiliates						$	91							$	91

(1)	On a same-facility system-wide basis, net revenue in Tenet’s Ambulatory Care segment increased 5.6% during the nine months ended September 30, 2018, with cases increasing 4.3% and revenue per case increasing 1.3%.
(2)	At September 30, 2018, 107 of the 335 facilities in the Company’s 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 228 facilities and account for these investments as consolidated subsidiaries.

Non-GAAP Financial Measures

Adjusted EBITDA, a non-GAAP measure, is defined by the Company as net income available (loss attributable) to Tenet Healthcare Corporation common shareholders before (1) the cumulative effect of changes in accounting principle, (2) net loss attributable (income available) to noncontrolling interests, (3) income (loss) from discontinued operations, (4) income tax benefit (expense), (5) gain (loss) from early extinguishment of debt, (6) other non-operating income (expense), net, (7) interest expense, (8) litigation and investigation (costs) benefit, net of insurance recoveries, (9) net gains (losses) on sales, consolidation and deconsolidation of facilities, (10) impairment and restructuring charges and acquisition-related costs, (11) depreciation and amortization and (12) income (loss) from divested operations and closed businesses (i.e., the Company’s health plan businesses). Litigation and investigation costs do not include ordinary course of business malpractice and other litigation and related expense.

Adjusted net income available (loss attributable) from continuing operations to Tenet Healthcare Corporation common shareholders, a non-GAAP measure, is defined by the Company as net income available (loss attributable) to Tenet Healthcare Corporation common shareholders before (1) net income (loss) from discontinued operations, (2) impairment and restructuring charges, and acquisition-related costs, (3) litigation and investigation costs, (4) net gains (losses) on sales, consolidation and deconsolidation of facilities, (5) gain (loss) from early extinguishment of debt, (6) income (loss) from divested operations and closed businesses, and (7) the associated impact of these items on taxes and noncontrolling interests. Adjusted diluted earnings (loss) per share from continuing operations, a non-GAAP term, is defined by the Company as Adjusted net income available (loss attributable) from continuing operations to Tenet Healthcare Corporation common shareholders divided by the weighted average primary or diluted shares outstanding in the reporting period.

Free Cash Flow, a non-GAAP measure, is defined by the Company as (1) net cash provided by (used in) operating activities, less (2) purchases of property and equipment from continuing operations.

Adjusted Free Cash Flow, a non-GAAP measure, is defined by the Company as (1) Adjusted net cash provided by (used in) operating activities from continuing operations, less (2) purchases of property and equipment from continuing operations. Adjusted net cash provided by (used in) operating activities, a non-GAAP measure, is defined by the Company as cash provided by (used in) operating activities prior to (1) payments for restructuring charges, acquisition-related costs and litigation costs and settlements, and (2) net cash provided by (used in) operating activities from discontinued operations.

The Company believes the foregoing non-GAAP measures are useful to investors and analysts because they present additional information on the Company’s financial performance. Investors, analysts, Company management and the Company’s Board of Directors utilize these non-GAAP measures, in addition to GAAP measures, to track the Company’s financial and operating performance and compare the Company’s performance to its peer companies, which utilize similar non-GAAP measures in their presentations. The Human Resources Committee of the Company’s Board of Directors also uses certain of these measures to evaluate management’s performance for the purpose of determining incentive compensation. Additional information regarding the purpose and utility of specific non-GAAP measures used in this release is set forth below.

The Company believes that Adjusted EBITDA is a useful measure, in part, because certain investors and analysts use both historical and projected Adjusted EBITDA, in addition to other GAAP and non-GAAP measures, as factors in determining the estimated fair value of shares of the Company’s common stock. Company management also regularly reviews the Adjusted EBITDA performance for each operating segment. The Company does not use Adjusted EBITDA to measure liquidity, but instead to measure operating performance.

We use, and we believe investors and analysts use, Free Cash Flow and Adjusted Free Cash Flow as supplemental measures to analyze cash flows generated from our operations because we believe it is useful to investors in evaluating our ability to fund distributions paid to noncontrolling interests, acquisitions, purchasing equity interests in joint ventures or repaying debt.

These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Because these measures exclude many items that are included in our financial statements, they do not provide a complete measure of our operating performance. For example, the Company’s definitions of Free Cash Flow and Adjusted Free Cash Flow do not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows From Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, (ii) distributions paid to noncontrolling interests, or (iii) payments under the Put/Call Agreement for USPI redeemable noncontrolling interest, which are recorded on the Statement of Cash Flows as the purchase of noncontrolling interest. Accordingly, investors are encouraged to use GAAP measures when evaluating the Company’s financial performance.

A reconciliation of net income available (loss attributable) to Tenet Healthcare Corporation common shareholders, the most comparable GAAP measure, to Adjusted EBITDA is set forth in Table #1 below for each quarter in 2017 and 2018. A reconciliation of net income available (loss attributable) to Tenet Healthcare Corporation common shareholders, the most comparable GAAP measure, to Adjusted net income available (loss attributable) from continuing operations to Tenet Healthcare Corporation common shareholders is set forth in Table #2 below for each quarter in 2017 and 2018. A reconciliation of net cash provided by operating activities, the most comparable GAAP measure, to Free Cash Flow and Adjusted Free Cash Flow is set forth in Table #3 below for each quarter in 2017 and 2018.

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures
Table #1 – Reconciliation of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA for 2018 (Unaudited)
(Dollars in millions)		2018
		1st Qtr				2nd Qtr				3rd Qtr				YTD
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	99			$	26			$	(9	)		$	116
Less: Net income available to noncontrolling interests		(92		)		(82		)		(74		)		(248		)
Income from discontinued operations, net of tax		1				2				—				3
Income from continuing operations		190				106				65				361
Income tax expense		(70		)		(44		)		(6		)		(120		)
Loss from early extinguishment of debt		(1		)		(1		)		—				(2		)
Other non-operating expense, net		(1		)		(1		)		—				(2		)
Interest expense		(255		)		(254		)		(249		)		(758		)
Operating income		517				406				320				1,243
Litigation and investigation costs		(6		)		(13		)		(9		)		(28		)
Net gains (losses) on sales, consolidation and deconsolidation of facilities		110				8				(7		)		111
Impairment and restructuring charges, and acquisition-related costs		(47		)		(30		)		(46		)		(123		)
Depreciation and amortization		(204		)		(194		)		(204		)		(602		)
Income (loss) from divested and closed businesses		(1		)		1				9				9
Adjusted EBITDA		$	665			$	634			$	577			$	1,876
Net operating revenues		$	4,699			$	4,506			$	4,489			$	13,694
Less: Net operating revenues from health plans		6				—				8				14
Adjusted net operating revenues		$	4,693			$	4,506			$	4,481			$	13,680
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders as a % of net operating revenues		2.1		%		0.6		%		(0.2		)%		0.8		%
Adjusted EBITDA as a % of adjusted net operating revenues (Adjusted EBITDA margin)		14.2		%		14.1		%		12.9		%		13.7		%

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #1 – Reconciliation of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA for 2017 (Unaudited)
(Dollars in millions)		2017
		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Total
Net loss attributable to Tenet Healthcare Corporation common shareholders		$	(53	)		$	(55	)		$	(367	)		$	(229	)		$	(704	)
Less: Net income available to noncontrolling interests		(89		)		(87		)		(78		)		(130		)		(384		)
Income (loss) from discontinued operations, net of tax		(1		)		1				(1		)		1				—
Income (loss) from continuing operations		37				31				(288		)		(100		)		(320		)
Income tax benefit (expense)		33				12				60				(324		)		(219		)
Loss from early extinguishment of debt		—				(26		)		(138		)		—				(164		)
Other non-operating expense, net		(5		)		(5		)		(4		)		(8		)		(22		)
Interest expense		(258		)		(260		)		(257		)		(253		)		(1,028		)
Operating income		267				310				51				485				1,113
Litigation and investigation costs		(5		)		(1		)		(6		)		(11		)		(23		)
Net gains on sales, consolidation and deconsolidation of facilities		15				23				104				2				144
Impairment and restructuring charges, and acquisition-related costs		(33		)		(41		)		(329		)		(138		)		(541		)
Depreciation and amortization		(221		)		(222		)		(219		)		(208		)		(870		)
Loss from divested and closed businesses		(16		)		(19		)		(6		)		—				(41		)
Adjusted EBITDA		$	527			$	570			$	507			$	840			$	2,444
Net operating revenues		$	4,813			$	4,802			$	4,586			$	4,978			$	19,179
Less: Net operating revenues from health plans		65				25				10				10				110
Adjusted net operating revenues		$	4,748			$	4,777			$	4,576			$	4,968			$	19,069
Net loss attributable to Tenet Healthcare Corporation common shareholders as a % of net operating revenues		(1.1		)%		(1.1		)%		(8.0		)%		(4.6		)%		(3.7		)%
Adjusted EBITDA as a % of adjusted net operating revenues (Adjusted EBITDA margin)		11.1		%		11.9		%		11.1		%		16.9		%		12.8		%

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #2 – Reconciliation of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available from Continuing Operations to Common Shareholders for 2018 (Unaudited)
(Dollars in millions except per share amounts)		2018
		1st Qtr				2nd Qtr				3rd Qtr				YTD
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	99			$	26			$	(9	)		$	116
Net income from discontinued operations		1				$	2			—				3
Net income (loss) from continuing operations		98				24				(9		)		113
Less: Impairment and restructuring charges, and acquisition-related costs		(47		)		(30		)		(46		)		(123		)
Litigation and investigation costs		(6		)		(13		)		(9		)		(28		)
Net gains (losses) on sales, consolidation and deconsolidation of facilities		110				8				(7		)		111
Loss from early extinguishment of debt		(1		)		(1		)		—				(2		)
Income (loss) from divested and closed businesses		(1		)		1				9				9
Tax impact of above items		(16		)		8				14				6
Adjusted net income available from continuing operations to common shareholders		$	59			$	51			$	30			$	140
Diluted earnings (loss) per share from continuing operations		$	0.95			$	0.23			$	(0.09	)		$	1.09
Less: Impairment and restructuring charges, and acquisition-related costs		(0.46		)		(0.29		)		(0.44		)		(1.18		)
Litigation and investigation costs		(0.06		)		(0.12		)		(0.09		)		(0.27		)
Net gains (losses) on sales, consolidation and deconsolidation of facilities		1.08				0.07				(0.07		)		1.07
Loss from early extinguishment of debt		(0.01		)		(0.01		)		—				(0.02		)
Income (loss) from divested and closed businesses		(0.01		)		0.01				0.09				0.09
Tax impact of above items		(0.16		)		0.08				0.13				0.06
Adjusted diluted earnings per share from continuing operations		$	0.57			$	0.49			$	0.29			$	1.35
Weighted average basic shares outstanding (in thousands)		101,392				102,147				102,402				101,980
Weighted average dilutive shares outstanding (in thousands)		102,656				104,177				104,575				103,802

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #2 – Reconciliation of Net Loss Attributable to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available (Loss Attributable) from Continuing Operations to Common Shareholders for 2017 (Unaudited)
(Dollars in millions except per share amounts)		2017
		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Total
Net loss attributable to Tenet Healthcare Corporation common shareholders		$	(53	)		$	(55	)		$	(367	)		$	(229	)		$	(704	)
Net income (loss) from discontinued operations		(1		)		$	1			(1		)		1				—
Net loss from continuing operations		(52		)		(56		)		(366		)		(230		)		(704		)
Less: Impairment and restructuring charges, and acquisition-related costs		(33		)		(41		)		(329		)		(138		)		(541		)
Litigation and investigation costs		(5		)		(1		)		(6		)		(11		)		(23		)
Net gains on sales, consolidation and deconsolidation of facilities		15				23				104				2				144
Loss from early extinguishment of debt		—				(26		)		(138		)		—				(164		)
Loss from divested and closed businesses		(16		)		(19		)		(6		)		—				(41		)
Tax impact of above items		14				25				26				49				114
Tax reform adjustment		—				—				—				(252		)		(252		)
Noncontrolling interests impact of above items		—				—				—				(23		)		(23		)
Adjusted net income available (loss attributable) from continuing operations to common shareholders		$	(27	)		$	(17	)		$	(17	)		$	143			$	82
Diluted loss per share from continuing operation		$	(0.52	)		$	(0.56	)		$	(3.63	)		$	(2.28	)		$	(7.00	)
Less: Impairment and restructuring charges, and acquisition-related costs		(0.33		)		(0.41		)		(3.26		)		(1.35		)		(5.34		)
Litigation and investigation costs		(0.05		)		(0.01		)		(0.06		)		(0.11		)		(0.23		)
Net gains on sales, consolidation and deconsolidation of facilities		0.15				0.23				1.03				0.02				1.42
Loss from early extinguishment of debt		—				(0.26		)		(1.37		)		—				(1.62		)
Loss from divested and closed businesses		(0.16		)		(0.19		)		(0.06		)		—				(0.40		)
Tax impact of above items		0.14				0.25				0.26				0.48				1.12
Tax reform adjustment		—				—				—				(2.47		)		(2.49		)
Noncontrolling interests impact of above items		—				—				—				(0.23		)		(0.23		)
Adjusted diluted earnings (loss) per share from continuing operations		$	(0.27	)		$	(0.17	)		$	(0.17	)		$	1.40			$	0.81
Weighted average basic shares outstanding (in thousands)		100,000				100,612				100,812				100,945				100,592
Weighted average dilutive shares outstanding (in thousands)		100,848				101,294				101,523				101,853				101,380

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #3 – Reconciliations of Net Cash Provided By Operating Activities to Free Cash Flow and Adjusted Free Cash Flow from Continuing Operations (Unaudited)
(Dollars in millions)		2018
		1st Qtr				2nd Qtr				3rd Qtr				YTD
Net cash provided by operating activities		$	113			$	348			$	338			$	799
Purchases of property and equipment		(143		)		(125		)		(136		)		(404		)
Free cash flow		$	(30	)		$	223			$	202			$	395
Net cash provided by (used in) investing activities		$	373			$	(148	)		$	(105	)		$	120
Net cash used in financing activities		$	(123	)		$	(771	)		$	(136	)		$	(1,030	)
Net cash provided by operating activities		$	113			$	348			$	338			$	799
Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements		(33		)		(30		)		(50		)		(113		)
Net cash used in operating activities from discontinued operations		(1		)		(2		)		(1		)		(4		)
Adjusted net cash provided by operating activities from continuing operations		147				380				389				916
Purchases of property and equipment		(143		)		(125		)		(136		)		(404		)
Adjusted free cash flow – continuing operations		$	4			$	255			$	253			$	512

(Dollars in millions)		2017
		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Total
Net cash provided by operating activities		$	186			$	215			$	308			$	491			$	1,200
Purchases of property and equipment		(198		)		(150		)		(144		)		(215		)		(707		)
Free cash flow		$	(12	)		$	65			$	164			$	276			$	493
Net cash provided by (used in) investing activities		$	(189	)		$	(119	)		$	535			$	(206	)		$	21
Net cash used in financing activities		$	(141	)		$	(193	)		$	(889	)		$	(103	)		$	(1,326	)
Net cash provided by operating activities		$	186			$	215			$	308			$	491			$	1,200
Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements		(24		)		(38		)		(26		)		(37		)		(125		)
Net cash provided by (used in) operating activities from discontinued operations		2				(4		)		(1		)		(2		)		(5		)
Adjusted net cash provided by operating activities from continuing operations		208				257				335				530				1,330
Purchases of property and equipment		(198		)		(150		)		(144		)		(215		)		(707		)
Adjusted free cash flow – continuing operations		$	10			$	107			$	191			$	315			$	623

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #4 – Reconciliation of Outlook Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted EBITDA (Unaudited)
(Dollars in millions)		Q4 2018								2018
		Low				High				Low				High
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	(32	)		$	33			$	84			$	149
Less: Net income available to noncontrolling interests		(117		)		(137		)		(365		)		(385		)
Net income (loss) from discontinued operations, net of tax		(3		)		2				—				5
Income tax expense		(55		)		(70		)		(175		)		(190		)
Interest expense		(252		)		(242		)		(1,010		)		(1,000		)
Loss from early extinguishment of debt(1)		—				—				(2		)		(2		)
Other non-operating expense, net		(3		)		(3		)		(5		)		(5		)
Net gains on sales, consolidation and deconsolidation of facilities(1)		—				—				111				111
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(2)		(39		)		(19		)		(190		)		(170		)
Depreciation and amortization		(208		)		(198		)		(810		)		(800		)
Income (loss) from divested and closed businesses		(4		)		1				5				10
Adjusted EBITDA		$	649			$	699			$	2,525			$	2,575
Income (loss) from continuing operations		$	(29	)		$	31			$	84			$	144
Net operating revenues		$	4,420			$	4,620			$	18,100			$	18,300
Income (loss) from continuing operations as a % of operating revenues		(0.7		)%		0.7		%		0.5		%		0.8		%
Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)		14.7		%		15.1		%		14.0		%		14.1		%

(1)	The Company does not generally forecast losses from the early extinguishment of debt or net gains (losses) on sales, consolidation and deconsolidation of facilities because the Company does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook. The figures shown represent the Company's actual year-to-date results for these items.
(2)	The Company has provided an estimate of restructuring charges and related payments that it anticipates in 2018. The figures shown represent the Company's estimate for restructuring charges plus the actual year-to-date results for impairment charges, acquisition-related costs, and litigation costs and settlements. The Company does not generally forecast impairment charges, acquisition-related costs, litigation costs and settlements because the Company does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook.

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #5 – Reconciliation of Outlook Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted Net Income Available from Continuing Operations to Common Shareholders (Unaudited)
(Dollars in millions except per share amounts)		Q4 2018								2018
		Low				High				Low				High
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	(32	)		$	33			$	84			$	149
Net income (loss) from discontinued operations, net of tax		(3		)		$	2			—				5
Net income (loss) from continuing operations		(29		)		31				84				144
Less: Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements		(39		)		(19		)		(190		)		(170		)
Net gains on sales, consolidation and deconsolidation of facilities		—				—				111				111
Loss from early extinguishment of debt		—				—				(2		)		(2		)
Income (loss) from divested and closed businesses		(4		)		1				5				10
Tax impact of above items		4				(1		)		10				5
Adjusted net income available from continuing operations to common shareholders		$	10			$	50			$	150			$	190
Diluted earnings (loss) per share from continuing operations		$	(0.28	)		$	0.30			$	0.81			$	1.38
Less: Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements		(0.37		)		(0.18		)		(1.83		)		(1.63		)
Net gains on sales, consolidation and deconsolidation of facilities		—				—				1.07				1.07
Loss from early extinguishment of debt		—				—				(0.02		)		(0.02		)
Income (loss) from divested and closed businesses		(0.04		)		0.01				0.05				0.10
Tax impact of above items		0.04				(0.01		)		0.10				0.05
Adjusted diluted earnings per share from continuing operations		$	0.10			$	0.48			$	1.44			$	1.83
Weighted average basic shares outstanding (in thousands)		102,000				102,000				102,000				102,000
Weighted average dilutive shares outstanding (in thousands)		105,000				105,000				104,000				104,000

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #6 – Reconciliation of Outlook Net Cash Provided by Operating Activities to Outlook Adjusted Free Cash Flow from Continuing Operations
(Dollars in millions)								2018
								Low				High
Net cash provided by operating activities								$	1,060			$	1,335
Less: Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1)								(160		)		(140		)
Net cash used in operating activities from discontinued operations								(5		)		—
Adjusted net cash provided by operating activities – continuing operations								1,225				1,475
Purchases of property and equipment – continuing operations								(625		)		(675		)
Adjusted free cash flow – continuing operations (2)								$	600			$	800

(1)	The Company has provided an estimate of payments that it anticipates in 2018 related to restructuring charges. The Company does not generally forecast payments related to acquisition-related costs and litigation costs and settlements because the Company does not believe that it can forecast these items with sufficient accuracy since some of these items may be indeterminable at the time the Company provides its financial Outlook.
(2)	The Company's definition of Adjusted Free Cash Flow does not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows From Financing Activities on the Company's Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, (ii) distributions paid to noncontrolling interests, or (iii) payments under the Put/Call Agreement for USPI redeemable noncontrolling interests, which are recorded on the Statement of Cash Flows as the purchase of noncontrolling interests.