Tenet Healthcare (THC) investor relations material

Strategic growth and operational focus

• Maintains strong demand for high-acuity care in both ambulatory and acute hospital segments, supporting continued organic growth projections for 2024 and beyond.

• Recent years included portfolio reorganization, asset divestitures, and targeted capital investments in retained markets, with expected returns from these initiatives.

• Plans for 2026 include broad cost structure review and cost reduction initiatives, leveraging both AI and operational efficiencies.

• Confident in guidance for 2026, citing robust market positions and ongoing strategic investments.

Technology and efficiency initiatives

• AI and automation are central to future cost savings, enabling workforce efficiency and improved asset utilization, especially in ambulatory surgery.

• Rightsizing overhead and operational improvements have already contributed to cost savings, with further gains expected from technology deployment.

• Technology pilots aim to enhance asset utilization and productivity in both hospital and ambulatory segments.

Market dynamics and payer environment

• ACA exchange headwinds are projected, with a 20% enrollment reduction and state-level variability impacting hospital segment guidance.

• Some patients are expected to transition to other coverage types, partially offsetting volume declines.

• Commercial rates are tracking 3%-5% with strong visibility through 2027, supported by value-driven negotiations and disciplined utilization.

• Employment trends remain strong, with no significant impact on payer mix or utilization observed.