Tenet Healthcare (THC) UBS Global Healthcare Conference summary

Operational performance and strategy

• Multi-year operational improvements and a data-driven culture have led to better, faster decision-making and margin expansion in key business units.

• Capacity was added by reducing contract labor expenses, supporting margin growth and stability.

• Deleveraging efforts succeeded through strategic divestitures, improving financial stability and investment capacity.

• Ambulatory surgery and Conifer businesses are outperforming expectations, with ongoing M&A and growth opportunities.

• Optimism for future performance is based on strong utilization and operational confidence built over recent years.

Demand environment and volume trends

• Strong patient volumes have persisted, driven by pent-up demand post-COVID and favorable demographic trends.

• Ambulatory surgery saw rapid demand recovery, while acute care is recovering more gradually, aligned with a high-acuity strategy.

• Medicare utilization and Medicaid access programs are supporting continued strong demand.

• The favorable demand environment is expected to continue into 2025.

Financial outlook and growth

• Technical adjustments for 2024 include divestitures and out-of-period payments, but growth is expected to more than offset these in 2025.

• Strong demand, pricing, operational discipline, and supplemental payment growth support a positive outlook.

• Margins and leverage have improved significantly, positioning the business as highly investable for the long term.

• Supplemental payments, such as new programs in Tennessee, are being closely monitored for future impact.