Tenet Health(THC) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements, management's discussion and analysis, and market risk disclosures Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, with accompanying notes Condensed Consolidated Financial Statements This section provides key financial statements, including balance sheets, statements of operations, and cash flows for the specified periods Condensed Consolidated Balance Sheets (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 ($M) | December 31, 2024 ($M) | | :-------------------------------- | :------------------- | :--------------------- | | Total Assets | 28,699 | 28,936 | | Total Liabilities | 20,397 | 20,389 | | Total Equity | 5,476 | 5,820 | | Cash and Cash Equivalents | 2,625 | 3,019 | | Goodwill | 10,935 | 10,691 | | Long-term debt, net of current portion | 13,091 | 13,081 | Condensed Consolidated Statements of Operations (Three Months Ended June 30, 2025 vs. 2024) | Metric | 3 Months Ended June 30, 2025 ($M) | 3 Months Ended June 30, 2024 ($M) | Change ($M) | Change (%) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Net operating revenues | 5,271 | 5,108 | 163 | 3.19% | | Operating income | 823 | 761 | 62 | 8.15% | | Net income | 522 | 477 | 45 | 9.43% | | Net income available to common shareholders | 288 | 259 | 29 | 11.20% | | Diluted EPS | 3.14 | 2.64 | 0.50 | 18.94% | Condensed Consolidated Statements of Operations (Six Months Ended June 30, 2025 vs. 2024) | Metric | 6 Months Ended June 30, 2025 ($M) | 6 Months Ended June 30, 2024 ($M) | Change ($M) | Change (%) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Net operating revenues | 10,494 | 10,476 | 18 | 0.17% | | Operating income | 1,766 | 4,046 | (2,280) | (56.35)% | | Net income | 1,144 | 2,811 | (1,667) | (59.30)% | | Net income available to common shareholders | 694 | 2,410 | (1,716) | (71.20)% | | Diluted EPS | 7.43 | 24.22 | (16.79) | (69.32)% | Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, 2025 vs. 2024) | Metric | 6 Months Ended June 30, 2025 ($M) | 6 Months Ended June 30, 2024 ($M) | Change ($M) | Change (%) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Net cash provided by operating activities | 1,751 | 1,333 | 418 | 31.36% | | Net cash provided by (used in) investing activities | (501) | 3,134 | (3,635) | (116.00)% | | Net cash used in financing activities | (1,644) | (2,815) | 1,171 | 41.60% | | Net increase (decrease) in cash and cash equivalents | (394) | 1,652 | (2,046) | (123.85)% | Notes to Condensed Consolidated Financial Statements This section provides detailed explanations and supplementary information for the condensed consolidated financial statements NOTE 1. BASIS OF PRESENTATION This note describes Tenet's diversified healthcare services business segments and the basis for financial statement preparation - Tenet is a diversified healthcare services company with Hospital Operations (49 acute care/specialty hospitals, 134 outpatient facilities) and Ambulatory Care (521 ambulatory surgery centers, 26 surgical hospitals via USPI) segments, also operating a Global Business Center (GBC) in the Philippines[20] Cash and Cash Equivalents | Date | Amount ($M) | | :--------------- | :---------- | | June 30, 2025 | 2,625 | | December 31, 2024 | 3,019 | * Change: Decreased by $394 million (13.05%) from December 31, 2024 Goodwill Changes (Six Months Ended June 30, 2025 vs. 2024) | Segment | 2025 ($M) | 2024 ($M) | | :------------------ | :-------- | :-------- | | Hospital Operations | 2,697 | 2,869 | | Ambulatory Care | 8,238 | 7,930 | | Total Goodwill | 10,935 | 10,799 | - Total other intangible assets, net, decreased to $1,372 million at June 30, 2025, from $1,397 million at December 31, 2024. Amortization expense for finite-lived intangible assets was $79 million for the six months ended June 30, 2025, down from $89 million in the prior year period[31] NOTE 2. ACCOUNTS RECEIVABLE This note details accounts receivable components, primarily patient accounts, and estimated costs for uninsured and charity patients Accounts Receivable Composition (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 ($M) | December 31, 2024 ($M) | | :------------------------------------------ | :------------------- | :--------------------- | | Patient accounts receivable | 2,377 | 2,386 | | Estimated future recoveries | 151 | 144 | | Cost report settlements receivable, net | 5 | 6 | | Accounts receivable, net | 2,533 | 2,536 | Estimated Costs for Uninsured and Charity Patients (Six Months Ended June 30, 2025 vs. 2024) | Patient Type | 6 Months Ended June 30, 2025 ($M) | 6 Months Ended June 30, 2024 ($M) | Change ($M) | Change (%) | | :----------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Uninsured patients | 218 | 271 | (53) | (19.56)% | | Charity care patients | 59 | 46 | 13 | 28.26% | | Total | 277 | 317 | (40) | (12.62)% | NOTE 3. DISPOSITION OF ASSETS AND LIABILITIES This note details significant asset dispositions completed in 2024, including hospital sales, which resulted in substantial pre-tax gains - In January 2024, the company completed the sale of three South Carolina hospitals, recognizing a pre-tax gain of $1.677 billion in the six months ended June 30, 2024[38] - In March 2024, the company sold four hospitals in Orange County and Los Angeles County, California, for a pre-tax gain of $526 million, and two hospitals in San Luis Obispo County, California, for a pre-tax gain of $275 million[44] - In March 2024, the company also sold three ambulatory surgery centers in South Carolina, resulting in a pre-tax gain of $43 million[44] NOTE 4. IMPAIRMENT AND RESTRUCTURING CHARGES, AND ACQUISITION‑RELATED COSTS This note outlines impairment, restructuring, and acquisition-related costs for the six-month periods ended June 30, 2025 and 2024 Impairment and Restructuring Charges, and Acquisition-Related Costs (Six Months Ended June 30, 2025 vs. 2024) | Charge Type | 6 Months Ended June 30, 2025 ($M) | 6 Months Ended June 30, 2024 ($M) | Change ($M) | Change (%) | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :---------- | :--------- |