Tenet Reports Strong Fourth Quarter and FY 2024 Results; Provides 2025 Financial Outlook

DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced its results for the quarter ended December 31, 2024. "2024 was an outstanding year for Tenet characterized by robust revenue growth, efficient operations, high levels of patient satisfaction and clinical quality, and a portfolio transformation that drove substantial balance sheet deleveraging," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "Our focused strategy, disciplined operating management, and the strong demand for acute care and ambulatory surgical services provide us with momentum as we begin the year and confidence to achieve our full year 2025 expectations." Tenet’s results for fourth quarter 2024 versus fourth quarter 2023 are as follows: Three Months Ended December 31, Years Ended December 31, ($ in millions, except per share results) 2024 2023 2024 2023 Net operating revenues $5,072 $5,379 $20,665 $20,548 Net income available to Tenet common shareholders $318 $244 $3,200 $611 Net income available to Tenet common shareholders per diluted share $3.32 $2.30 $32.70 $5.71 Adjusted EBITDA1 $1,048 $1,012 $3,995 $3,541 Adjusted diluted earnings per share1 $3.44 $2.68 $11.88 $6.98 Net operating revenues in fourth quarter 2024 were $5.072 billion, versus $5.379 billion in fourth quarter 2023, reflecting the impact of the divestiture of fourteen hospitals in 2024, partially offset by strong same facility revenue growth, favorable payer mix, and acquisitions of ambulatory surgical centers. Net income available to the Company’s common shareholders in the fourth quarter 2024 was $318 million, or $3.32 per diluted share, versus $244 million, or $2.30 per diluted share, in fourth quarter 2023. Net income available to the Company's common shareholders in 2024 was $3.2 billion, or $32.70 per diluted share, versus $611 million, or $5.71 in 2023. 2024 results included a pre-tax gain of $2.916 billion ($2.143 billion after-tax, or $21.89 per diluted share) primarily associated with the hospital divestitures. Adjusted EBITDA1 in fourth quarter 2024 was $1.048 billion compared to $1.012 billion in fourth quarter 2023, reflecting strong same-hospital admissions growth, strong ambulatory net revenue per case growth, favorable payer mix, and increased Medicaid supplemental revenues in Michigan, partially offset by the impact of hospital divestitures. Fourth quarter 2023 results included $52 million of revenue associated with Medicaid supplemental revenue program adjustments in California and Texas. Balance Sheet and Cash Flows Cash flows provided by operating activities for the year ended December 31, 2024 were $2.047 billion versus $2.374 billion for the year ended December 31, 2023. Cash flows provided by operating activities for the year ended December 31, 2024 included $855 million of income taxes paid associated with gains on sale of hospitals and related operations. The Company produced free cash flow1 of $1.116 billion for the year ended December 31, 2024 versus $1.623 billion for the year ended December 31, 2023. In the year ended December 31, 2024, the Company repurchased 5,596,573 shares of common stock for $672 million. The Company’s ratio of net debt to Adjusted EBITDA1 was 2.54x at December 31, 2024 compared to 3.89x at December 31, 2023. Ambulatory Care (Ambulatory) Segment Tenet’s Ambulatory business segment is comprised of the operations of United Surgical Partners International (USPI). As of December 31, 2024, USPI had interests in 518 ambulatory surgery centers (375 consolidated) and 25 surgical hospitals (seven consolidated) in 37 states. Three Months Ended December 31, Years Ended December 31, Ambulatory segment results ($ in millions) 2024 2023 2024 2023 Revenues Net operating revenues $1,259 $1,077 $4,534 $3,865 Same-facility system-wide net patient service revenues2 $2,183 $2,010 $7,664 $7,109 Volume Changes versus the Prior-Year Period Same-facility system-wide surgical cases2 0.1% 3.9% 0.3 % 5.6% Same-facility system-wide surgical cases on same-business day basis2 (1.5)% 3.9% (0.5)% 6.0% Adjusted EBITDA, Margins and NCI Adjusted EBITDA $530 $464 $1,810 $1,544 Adjusted EBITDA margin 42.1% 43.1% 39.9% 39.9% Adjusted EBITDA less NCI $317 $280 $1,096 $958 Fourth quarter 2024 net operating revenues increased 16.9% compared to fourth quarter 2023 driven by strong net revenue per case growth, acquisitions of facilities, and increased service lines. Surgical business same-facility system-wide net patient service revenues increased 8.6% in fourth quarter 2024 compared to fourth quarter 2023, with cases up 0.1% and net revenue per case up 8.5%. Net revenue per case growth was driven by higher acuity associated with favorable case mix as well as favorable payer mix. Fourth quarter 2024 Adjusted EBITDA increased 14.2% compared to fourth quarter 2023, due to strong net revenue per case growth, disciplined expense management, and contributions from acquisitions. Hospital Operations and Services (Hospital) Segment Tenet’s Hospital business segment is primarily comprised of acute care and specialty hospitals, imaging centers, ancillary outpatient facilities, micro-hospitals and physician practices. It also provides comprehensive end-to-end and focused point services, including hospital and physician revenue cycle management, patient communications and engagement support and value-based care solutions. Three Months Ended December 31, Years Ended December 31, Hospital segment results ($ in millions) 2024 2023 2024 2023 Revenues Net operating revenues $3,813 $4,302 $16,131 $16,683 Same-hospital net patient service revenues3 $3,218 $3,104 $12,829 $11,968 Same-Hospital Volume Changes versus the Prior-Year Period Admissions 5.0% 1.0% 4.7% 2.2% Adjusted admissions4 3.1% 0.1% 2.5% 2.5% Outpatient visits (including outpatient ER visits) 0.4% (2.2)% 0.3% (1.3)% Emergency Room visits (inpatient and outpatient) (2.4)% (3.3)% 0.9% 0.1% Hospital surgeries 0.2% 0.8% 0.6% 0.6% Adjusted EBITDA Adjusted EBITDA $518 $548 $2,185 $1,997 Adjusted EBITDA margin 13.6% 12.7% 13.5% 12.0% Fourth quarter 2024 net operating revenues declined 11.4% from fourth quarter 2023 primarily due to the impact of hospital divestitures in 2024, partially offset by strong same hospital admissions growth, favorable payer mix, and improved pricing yield. Same-hospital net patient service revenue per adjusted admission increased 0.6% year-over-year for fourth quarter 2024 primarily due to improved pricing yield, favorable payer mix, and our focus on growing higher acuity services, partially offset by net unfavorable Medicaid supplemental revenue program adjustments relative to fourth quarter 2023. Adjusted EBITDA in fourth quarter 2024 was $518 million compared to $548 million in fourth quarter 2023, reflecting strong same-hospital admissions growth and revenue per adjusted admission, favorable payer mix, and increased supplemental revenues in Michigan, offset by the impact of hospital divestitures and the favorable Medicaid supplemental revenue program adjustments of $52 million in fourth quarter 2023. 2025 Outlook1 Tenet’s Outlook for full year 2025 (consolidated and by segment) follows. CONSOLIDATED ($ in millions, except per share amounts) FY 2025 Outlook Net operating revenues $20,600 to $21,000 Net income available to Tenet common stockholders $1,040 to $1,185 Adjusted EBITDA $3,975 to $4,175 Adjusted EBITDA margin 19.3% to 19.9% Diluted income per common share $10.95 to $12.47 Adjusted net income $1,115 to $1,220 Adjusted diluted earnings per share $11.74 to $12.84 Equity in earnings of unconsolidated affiliates $265 to $275 Depreciation and amortization $805 to $835 Interest expense $795 to $805 Income tax expense5 $420 to $465 Net income available to NCI $910 to $960 Weighted average diluted common shares ~95 million Net cash provided by operating activities $2,500 to $2,850 Adjusted net cash provided by operating activities $2,600 to $2,900 Capital expenditures $700 to $800 Free cash flow $1,800 to $2,050 Adjusted free cash flow $1,900 to $2,100 NCI cash distributions $750 to $800 Ambulatory Segment ($ in millions) FY 2025 Outlook Net operating revenues $4,850 to $5,000 Adjusted EBITDA $1,915 to $1,985 NCI $760 to $790 Adjusted EBITDA less NCI $1,155 to $1,195 Changes versus prior year6: Same-facility system-wide revenue Up 3.0% to 6.0% Hospital Segment ($ in millions) FY 2025 Outlook Net operating revenues $15,750 to $16,000 Adjusted EBITDA $2,060 to $2,190 NCI $150 to $170 Changes versus prior year6: Inpatient admissions Up 2.0% to 3.0% Adjusted admissions Up 2.0% to 3.0% Management’s Webcast Discussion of Results Tenet management will discuss the Company’s fourth quarter 2024 results in a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on February 12, 2025. Investors can access the webcast through the Company’s website at www.tenethealth.com/investors. The slide presentation associated with the webcast referenced above, a copy of this earnings press release, and a related supplemental financial disclosures document will be available on the Company’s Investor Relations website on February 12, 2025. Cautionary Statement This release contains “forward-looking statements” - that is, statements that relate to future, not past, events. In this context, forward-looking statements often address the Company’s 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 the Company’s actual results to be materially different than those expressed in the Company’s 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, 2023 and other filings with the Securities and Exchange Commission. Footnotes Tables and discussions throughout this earnings release include certain financial measures, including those related to our first quarter and full year 2025 Outlook, that are not in accordance with accounting principles generally accepted in the United States of America (GAAP). Reconciliations of GAAP measures to the Adjusted (non-GAAP) measures used are detailed in Tables #1-6 included at the end of this earnings release. Management’s reasoning for the use of these non-GAAP measures and descriptions of the various non-GAAP measures are included in the Non-GAAP Financial Measures section of this earnings release. Same-facility system-wide revenues and statistical information include the results of the facilities in which the Ambulatory segment has an investment that 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. For 2024, same-hospital revenues and statistical data include those for hospitals and hospital-affiliated outpatient centers operated by the Company’s Hospital segment continuously from January 1, 2023 through December 31, 2024. Amounts associated with physician practices are excluded. Adjusted admissions represent actual patient admissions adjusted to include outpatient services provided by facilities in our Hospital segment by multiplying actual patient admissions by the sum of gross inpatient revenues and outpatient revenues, then dividing that result by gross inpatient revenues. Income tax expense is calculated by multiplying 24% (the federal corporate tax rate of 21% plus an estimate of state taxes) by the sum of: pretax income less GAAP facility level NCI expense plus permanent differences, and non-deductible interest expense. Change versus prior year is presented on a same-facility system-wide basis for USPI Ambulatory surgical cases and on a same-hospital basis for hospital statistics. About Tenet Healthcare Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas. Our care delivery network includes United Surgical Partners International, the largest ambulatory platform in the country, which operates ambulatory surgery centers and surgical hospitals. We also operate a national portfolio of acute care and specialty hospitals, other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines. Our Conifer Health Solutions subsidiary provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com. Non-GAAP Financial Measures The Company believes the non-GAAP measures described below 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 use similar non-GAAP financial measures in their presentations and earnings releases. 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. Adjusted EBITDA is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) the cumulative effect of changes in accounting principles, (2) net loss attributable (income available) to noncontrolling interests, (3) income (loss) from discontinued operations, net of tax, (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 benefit (costs), 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 and closed businesses (i.e., health plan businesses). Litigation and investigation costs excluded do not include ordinary course of business malpractice and other litigation and related expenses. Adjusted diluted earnings (loss) per share is defined by the Company as Adjusted net income available (loss attributable) to Tenet common shareholders, divided by the weighted average diluted shares outstanding in the reporting period. Adjusted net income available (loss attributable) to Tenet common shareholders is defined by the Company as net income available (loss attributable) to Tenet common shareholders before (1) income (loss) from discontinued operations, net of tax, (2) gain (loss) from early extinguishment of debt, (3) litigation and investigation benefit (costs), net of insurance recoveries, (4) net gains (losses) on sales, consolidation and deconsolidation of facilities, (5) impairment and restructuring charges and acquisition-related costs, (6) income (loss) from divested and closed businesses (i.e., health plan businesses) and (7) the associated impact of these items on taxes and noncontrolling interests. Litigation and investigation costs excluded do not include ordinary course of business malpractice and other litigation and related expenses. Free Cash Flow is defined by the Company as (1) net cash provided by (used in) operating activities, less (2) purchases of property and equipment. Adjusted Free Cash Flow is defined by the Company as (1) Adjusted net cash provided by (used in) operating activities, less (2) purchases of property and equipment. Adjusted net cash provided by (used in) operating activities 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 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. The Company uses, and believes investors use, Free Cash Flow and Adjusted Free Cash Flow as supplemental non-GAAP measures to analyze cash flows generated from the Company’s operations. The Company believes these measures are useful to investors in evaluating its ability to fund distributions paid to noncontrolling interests or for 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 the Company’s financial statements, they do not provide a complete measure of the Company’s 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, or (ii) distributions paid to noncontrolling interests. Accordingly, investors are encouraged to use GAAP measures when evaluating the Company’s financial performance. See corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures in Tables #1 - 6 below. Tenet Healthcare Corporation Financial Statements and Reconciliations Fourth Quarter Earnings Release Table of Contents Description Page Consolidated Statements of Operations 12 Consolidated Balance Sheets 14 Consolidated Statements of Cash Flows 15 Segment Reporting 17 Table #1 – Reconciliations of Net Income to Adjusted Net Income 18 Table #2 – Reconciliations of Net Income to Adjusted EBITDA 19 Table #3 – Reconciliations of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow and Adjusted Free Cash Flow 20 Table #4 – Reconciliations of Outlook Net Income to Outlook Adjusted Net Income 21 Table #5 – Reconciliations of Outlook Net Income to Outlook Adjusted EBITDA 22 Table #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow 23 TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in millions, except per share amounts) Three Months Ended December 31, 2024 % 2023 % Change Net operating revenues $ 5,072 100.0 % $ 5,379 100.0 % (5.7 )% Grant income 1 — % 2 — % (50.0 )% Equity in earnings of unconsolidated affiliates 78 1.5 % 73 1.4 % 6.8 % Operating expenses: Salaries, wages and benefits 2,094 41.3 % 2,315 43.0 % (9.5 )% Supplies 930 18.3 % 931 17.3 % (0.1 )% Other operating expenses, net 1,079 21.3 % 1,196 22.2 % (9.8 )% Depreciation and amortization 193 3.8 % 216 4.0 % Impairment and restructuring charges, and acquisition-related costs 27 0.5 % 53 1.0 % Litigation and investigation costs 17 0.3 % 19 0.4 % Net gains on sales, consolidation and deconsolidation of facilities (10 ) (0.2 )% (11 ) (0.2 )% Operating income 821 16.2 % 735 13.7 % Interest expense (203 ) (227 ) Other non-operating income, net 37 11 Income before income taxes 655 519 Income tax expense (83 ) (63 ) Net income 572 456 Less: Net income available to noncontrolling interests 254 212 Net income available to Tenet Healthcare Corporation common shareholders $ 318 $ 244 Earnings per share available to Tenet Healthcare Corporation common shareholders: Basic $ 3.34 $ 2.42 Diluted $ 3.32 $ 2.30 Weighted average shares and dilutive securities outstanding (in thousands): Basic 95,102 100,956 Diluted 95,882 104,167 TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in millions, except per share amounts) Years Ended December 31, 2024 % 2023 % Change Net operating revenues $ 20,665 100.0 % $ 20,548 100.0 % 0.6 % Grant income 10 — % 16 0.1 % (37.5 )% Equity in earnings of unconsolidated affiliates 260 1.3 % 228 1.1 % 14.0 % Operating expenses: Salaries, wages and benefits 8,801 42.6 % 9,146 44.5 % (3.8 )% Supplies 3,647 17.6 % 3,590 17.5 % 1.6 % Other operating expenses, net 4,492 21.7 % 4,515 22.0 % (0.5 )% Depreciation and amortization 818 4.0 % 870 4.2 % Impairment and restructuring charges, and acquisition-related costs 102 0.5 % 137 0.7 % Litigation and investigation costs 35 0.2 % 47 0.2 % Net gains on sales, consolidation and deconsolidation of facilities (2,916 ) (14.1 )% (23 ) (0.1 )% Operating income 5,956 28.8 % 2,510 12.2 % Interest expense (826 ) (901 ) Other non-operating income, net 126 19 Loss from early extinguishment of debt (8 ) (11 ) Income before income taxes 5,248 1,617 Income tax expense (1,184 ) (306 ) Net income 4,064 1,311 Less: Net income available to noncontrolling interests 864 700 Net income available to Tenet Healthcare Corporation common shareholders $ 3,200 $ 611 Earnings per share available to Tenet Healthcare Corporation common shareholders: Basic $ 33.02 $ 6.01 Diluted $ 32.70 $ 5.71 Weighted average shares and dilutive securities outstanding (in thousands): Basic 96,904 101,639 Diluted 97,881 104,800 TENET HEALTHCARE CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in millions) December 31, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 3,019 $ 1,228 Accounts receivable 2,536 2,914 Inventories of supplies, at cost 346 411 Assets held for sale 21 775 Other current assets 1,760 1,839 Total current assets 7,682 7,167 Investments and other assets 3,037 3,157 Deferred income taxes 80 77 Property and equipment, at cost, less accumulated depreciation and amortization 6,049 6,236 Goodwill 10,691 10,307 Other intangible assets, at cost, less accumulated amortization 1,397 1,368 Total assets $ 28,936 $ 28,312 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 92 $ 120 Accounts payable 1,294 1,408 Accrued compensation and benefits 899 930 Professional and general liability reserves 238 254 Accrued interest payable 149 200 Liabilities held for sale 13 69 Income tax payable 18 23 Other current liabilities 1,607 1,756 Total current liabilities 4,310 4,760 Long-term debt, net of current portion 13,081 14,882 Professional and general liability reserves 900 792 Defined benefit plan obligations 298 335 Deferred income taxes 227 326 Other long-term liabilities 1,573 1,709 Total liabilities 20,389 22,804 Commitments and contingencies Redeemable noncontrolling interests in equity of consolidated subsidiaries 2,727 2,391 Equity: Shareholders’ equity: Common stock 8 8 Additional paid-in capital 4,873 4,834 Accumulated other comprehensive loss (180 ) (181 ) Retained earnings (accumulated deficit) 3,008 (192 ) Common stock in treasury, at cost (3,538 ) (2,861 ) Total shareholders’ equity 4,171 1,608 Noncontrolling interests 1,649 1,509 Total equity 5,820 3,117 Total liabilities and equity $ 28,936 $ 28,312 TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in millions) Years Ended December 31, 2024 2023 Net income $ 4,064 $ 1,311 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 818 870 Deferred income tax expense (benefit) (103 ) 52 Stock-based compensation expense 67 66 Impairment and restructuring charges, and acquisition-related costs 102 137 Litigation and investigation costs 35 47 Net gains on sales, consolidation and deconsolidation of facilities (2,916 ) (23 ) Loss from early extinguishment of debt 8 11 Equity in earnings of unconsolidated affiliates, net of distributions received (29 ) (13 ) Amortization of debt discount and debt issuance costs 26 32 Net gains from the sale of investments and long-lived assets (4 ) (29 ) Other items, net (4 ) (4 ) Changes in cash from operating assets and liabilities: Accounts receivable 245 (29 ) Inventories and other current assets (86 ) (139 ) Income taxes 16 10 Accounts payable, accrued expenses and other current liabilities (30 ) 215 Other long-term liabilities (9 ) 14 Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements (153 ) (154 ) Net cash provided by operating activities 2,047 2,374 Cash flows from investing activities: Purchases of property and equipment (931 ) (751 ) Purchases of businesses or joint venture interests, net of cash acquired (571 ) (224 ) Proceeds from sales of facilities and other assets 4,981 71 Proceeds from sales of marketable securities and long-term investments 63 50 Purchases of marketable securities and long-term investments (94 ) (104 ) Other items, net (19 ) (11 ) Net cash provided by (used in) investing activities 3,429 (969 ) Cash flows from financing activities: Repayments of borrowings (2,243 ) (1,542 ) Proceeds from borrowings 23 1,370 Repurchases of common stock (672 ) (200 ) Debt issuance costs — (16 ) Distributions paid to noncontrolling interests (681 ) (594 ) Proceeds from the sale of noncontrolling interests 23 43 Purchases of noncontrolling interests (200 ) (167 ) Advances from managed care payers 342 — Repayments of advances from managed care payers (310 ) — Other items, net 33 71 Net cash used in financing activities (3,685 ) (1,035 ) Net increase in cash and cash equivalents 1,791 370 Cash and cash equivalents at beginning of period 1,228 858 Cash and cash equivalents at end of period $ 3,019 $ 1,228 Supplemental disclosures: Interest paid, net of capitalized interest $ (851 ) $ (882 ) Income tax payments, net $ (1,271 ) $ (243 ) TENET HEALTHCARE CORPORATION SEGMENT REPORTING (Unaudited) Three Months Ended Years Ended December 31, December 31, (Dollars in millions) 2024 2023 2024 2023 Net operating revenues: Ambulatory Care $ 1,259 $ 1,077 $ 4,534 $ 3,865 Hospital Operations and Services 3,813 4,302 16,131 16,683 Total $ 5,072 $ 5,379 $ 20,665 $ 20,548 Equity in earnings of unconsolidated affiliates: Ambulatory Care $ 75 $ 69 $ 250 $ 218 Hospital Operations and Services 3 4 10 10 Total $ 78 $ 73 $ 260 $ 228 Adjusted EBITDA: Ambulatory Care $ 530 $ 464 $ 1,810 $ 1,544 Hospital Operations and Services 518 548 2,185 1,997 Total $ 1,048 $ 1,012 $ 3,995 $ 3,541 Adjusted EBITDA margins: Ambulatory Care 42.1 % 43.1 % 39.9 % 39.9 % Hospital Operations and Services 13.6 % 12.7 % 13.5 % 12.0 % Total 20.7 % 18.8 % 19.3 % 17.2 % Capital expenditures: Ambulatory Care $ 21 $ 22 $ 86 $ 80 Hospital Operations and Services 309 186 845 671 Total $ 330 $ 208 $ 931 $ 751 TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #1 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available to Common Shareholders (Unaudited) Three Months Ended Years Ended December 31, December 31, (Dollars in millions, except per share amounts) 2024 2023 2024 2023 Net income available to Tenet Healthcare Corporation common shareholders $ 318 $ 244 $ 3,200 $ 611 Less: Impairment and restructuring charges, and acquisition-related costs (27 ) (53 ) (102 ) (137 ) Litigation and investigation costs (17 ) (19 ) (35 ) (47 ) Net gains on sales, consolidation and deconsolidation of facilities 10 11 2,916 23 Loss from early extinguishment of debt — — (8 ) (11 ) Tax and noncontrolling interests impact of above items 22 22 (733 ) 39 Adjusted net income available to common shareholders $ 330 $ 283 $ 1,162 $ 744 Diluted earnings per share $ 3.32 $ 2.30 $ 32.70 $ 5.71 Less: Impairment and restructuring charges, and acquisition-related costs (0.28 ) (0.51 ) (1.04 ) (1.31 ) Litigation and investigation costs (0.18 ) (0.18 ) (0.36 ) (0.45 ) Net gains on sales, consolidation and deconsolidation of facilities 0.11 0.10 29.79 0.22 Loss from early extinguishment of debt — — (0.08 ) (0.10 ) Tax and noncontrolling interests impact of above items 0.23 0.21 (7.49 ) 0.37 Adjusted diluted earnings per share $ 3.44 $ 2.68 $ 11.88 $ 6.98 Weighted average basic shares outstanding (in thousands) 95,102 100,956 96,904 101,639 Weighted average dilutive shares outstanding (in thousands) 95,882 104,167 97,881 104,800 TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #2 – Reconciliations of Net Income Available to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA (Unaudited) Three Months Ended Years Ended December 31, December 31, (Dollars in millions) 2024 2023 2024 2023 Net income available to Tenet Healthcare Corporation common shareholders $ 318 $ 244 $ 3,200 $ 611 Less: Net income available to noncontrolling interests (254 ) (212 ) (864 ) (700 ) Net income 572 456 4,064 1,311 Income tax expense (83 ) (63 ) (1,184 ) (306 ) Loss from early extinguishment of debt — — (8 ) (11 ) Other non-operating income, net 37 11 126 19 Interest expense (203 ) (227 ) (826 ) (901 ) Operating income 821 735 5,956 2,510 Litigation and investigation costs (17 ) (19 ) (35 ) (47 ) Net gains on sales, consolidation and deconsolidation of facilities 10 11 2,916 23 Impairment and restructuring charges, and acquisition-related costs (27 ) (53 ) (102 ) (137 ) Depreciation and amortization (193 ) (216 ) (818 ) (870 ) Adjusted EBITDA $ 1,048 $ 1,012 $ 3,995 $ 3,541 Net operating revenues $ 5,072 $ 5,379 $ 20,665 $ 20,548 Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues 6.3 % 4.5 % 15.5 % 3.0 % Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) 20.7 % 18.8 % 19.3 % 17.2 % TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #3 – Reconciliations of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow and Adjusted Free Cash Flow (Unaudited) 2024 (Dollars in millions) Q4 YTD Net cash provided by (used in) operating activities $ (331 ) $ 2,047 Purchases of property and equipment (330 ) (931 ) Free cash flow $ (661 ) $ 1,116 Net cash provided by (used in) investing activities $ (372 ) $ 3,429 Net cash used in financing activities $ (372 ) $ (3,685 ) Net cash provided by (used in) operating activities $ (331 ) $ 2,047 Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements (34 ) (153 ) Adjusted net cash provided by (used in) operating activities (297 ) 2,200 Purchases of property and equipment (330 ) (931 ) Adjusted free cash flow $ (627 ) $ 1,269 2023 (Dollars in millions) Q4 YTD Net cash provided by operating activities $ 824 $ 2,374 Purchases of property and equipment (208 ) (751 ) Free cash flow $ 616 $ 1,623 Net cash used in investing activities $ (333 ) $ (969 ) Net cash used in financing activities $ (317 ) $ (1,035 ) Net cash provided by operating activities $ 824 $ 2,374 Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements (49 ) (154 ) Adjusted net cash provided by operating activities 873 2,528 Purchases of property and equipment (208 ) (751 ) Adjusted free cash flow $ 665 $ 1,777 TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #4 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted Net Income Available to Common Shareholders (Unaudited) FY 2025 (Dollars in millions, except per share amounts) Low High Net income available to Tenet Healthcare Corporation common shareholders $ 1,040 $ 1,185 Less: Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) (100 ) (50 ) Tax and noncontrolling interests impact of above items 25 15 Adjusted net income available to common shareholders $ 1,115 $ 1,220 Diluted earnings per share $ 10.95 $ 12.47 Less: Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements (1.05 ) (0.53 ) Tax and noncontrolling interests impact of above items 0.26 0.16 Adjusted diluted earnings per share $ 11.74 $ 12.84 Weighted average basic shares outstanding (in thousands) 94,000 94,000 Weighted average dilutive shares outstanding (in thousands) 95,000 95,000 (1) The figures shown represent the Company's estimate for restructuring charges. The Company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements because it 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 – Reconciliations of Outlook Net Income Available to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted EBITDA (Unaudited) FY 2025 (Dollars in millions) Low High Net income available to Tenet Healthcare Corporation common shareholders $ 1,040 $ 1,185 Less: Net income available to noncontrolling interests (910 ) (960 ) Income tax expense (420 ) (465 ) Interest expense (805 ) (795 ) Other non-operating income, net 105 115 Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(1) (100 ) (50 ) Depreciation and amortization (805 ) (835 ) Adjusted EBITDA $ 3,975 $ 4,175 Net income available to Tenet Healthcare Corporation common shareholders $ 1,040 $ 1,185 Net operating revenues $ 20,600 $ 21,000 Net income available to Tenet Healthcare Corporation common shareholders as a % of net operating revenues 5.0 % 5.6 % Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin) 19.3 % 19.9 % (1) The figures shown represent the Company's estimate for restructuring charges. The Company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements because it 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 #6 – Reconciliations of Outlook Net Cash Provided by Operating Activities to Outlook Free Cash Flow and Outlook Adjusted Free Cash Flow (Unaudited) FY 2025 (Dollars in millions) Low High Net cash provided by operating activities $ 2,500 $ 2,850 Purchases of property and equipment (700 ) (800 ) Free cash flow $ 1,800 $ 2,050 Net cash provided by operating activities $ 2,500 $ 2,850 Less: Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1) (100 ) (50 ) Adjusted net cash provided by operating activities 2,600 2,900 Purchases of property and equipment (700 ) (800 ) Adjusted free cash flow(2) $ 1,900 $ 2,100 (1) The figures shown represent the Company's estimate for restructuring payments. The Company does not generally forecast payments for acquisition-related costs, and litigation costs and settlements because it 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. (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, and (ii) distributions paid to noncontrolling interests.

Tenet Reports Strong Fourth Quarter and FY 2024 Results; Provides 2025 Financial Outlook

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