Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — J.P. Morgan Healthcare Conference 2022
18 slides from Tenet Healthcare's conference presentation, Jan 11, 2022
Slide 1: Tenet Healthcare J.P. Morgan Healthcare Conference
Tenet Healthcare J.P. Morgan Healthcare Conference Saum Sutaria, M.D., CEO January 11, 2022
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS This presentation includes “forward-looking statements.” These statements relate to future events, including, but not limited to, statements regarding our liquidity, operating results, future earnings, financial position, operational and strategic initiatives, and developments
Slide 3: Agenda
AGENDA • Tenet Health Transformation • The Next Phase of Growth • Our Strong Operating Model 3
Slide 4: Tenet Health Transformation
GROWTH-CENTRIC PORTFOLIO STRATEGY Refined portfolio to enable growth, divested 5 hospital markets since 2017 for ~$1.75B of proceeds (~$2.5B of revenue, ~$105M of Adjusted EBITDA), increased strategic capital deployment, expanded USPI’s network and reinvested in Conifer's technology RESTRUCTURED OPE
Slide 5: Significantly improved financial profile
Significantly improved financial profile ADJUSTED ADJUSTED NET REVENUE ADJUSTED EBITDA EBITDA MARGIN FREE CASH FLOW DEBT LEVERAGE $19.1B $19.7B(a) 16.8% $1.3B(b) 5.9x 3% $3.3B(a) 31% 12.8% -41% 35% ~$2.44B 160% 3.5x $0.5B 2017 2021G 2017 2021G 2017 2021G 2017 2021G 2017 Q3 2021 Note: 2021G is based
Slide 6: Strengthened all business units
Strengthened all business units HOSPITALS USPI CONIFER Restructured the portfolio and invested in high Focused on ambulatory surgery and fully Redesigned the service delivery model, acuity services, enabling same-hospital Adjusted realized integration benefits which continue leveraging technology an
Slide 7: A repositioned care delivery portfolio
A repositioned care delivery portfolio 60 76 Acute Care Hospitals 438 267 Surgical Facilities End of 2017 End of 2021 Note: Includes acute care hospitals and USPI surgical facilities including those we operate, as well as de novo and other facilities in which we have an ownership interest from the r
Slide 8: Leading ambulatory surgery platform
Leading ambulatory surgery platform DIFFERENTIATORS AMBULATORY SURGERY FACILITIES 438 • Partner of choice for physicians • Focused on ambulatory surgery 250+ 250+ • Highly diversified development pipeline 145+ 127+ • Track-record of delivering synergies • Strong margins and cash flow generation • Co
Slide 9: Acquired nearly all of SurgCenter Development
Acquired nearly all of SurgCenter Development UNIQUE SCOPE STRONG FINANCIALS ATTRACTIVE SYNERGIES 86 ~$275M ~$45M mature and de fully ramped fully ramped novo centers Adjusted synergies(a) EBITDA(a) Acquisition included an ownership Strong performance with fully ramped Synergies estimated to be ~16%
Slide 10: The Next Stage of Growth
HIGH QUALITY, SPECIALTY CARE Enhance access to community-based specialty care to meet the evolving healthcare needs in the communities we serve DISTINCTIVE AMBULATORY SURGERY PLATFORM Utilize USPI’s unique development and management capabilities to further increase THE NEXT competitive two-way and t
Slide 11: Enhancing high acuity hospital services
Enhancing high acuity hospital services The Hospitals of Providence East Campus in Delray Medical Center became the first hospital The DMC Children’s Hospital of Michigan El Paso began a $20M investment to expand in the region to offer MR-guided focused recently opened a Fetal Care Center to increas
Slide 12: Increasing healthcare access in growing communities
Increasing healthcare access in growing communities 2.5%+ population growth 2.5%+ population growth 3.0%+ population growth 58% commercial 52% commercial 50% commercial Planning to open Fort Mill Hospital in August Breaking ground on a new healthcare Breaking ground on a new healthcare 2022, providi
Slide 13: Continuing to scale USPI's national platform
Continuing to scale USPI’s national platform ACQUISITION CAPITAL DE NOVO CENTERS HIGH QUALITY PHYSICIANS Anticipate at least $200M in acquisition capital Target syndication of 15 – 20 de novos in Expand USPI medical staff with high quality to be deployed in 2022 with a robust and 2022 including both
Slide 14: Targeting ~600 USPI centers by end of 2025
Targeting ~600 USPI centers by end of 2025 ILLUSTRATIVE USPI PORTFOLIO PATHWAY 30-32+ 575 - 600+ 30-40+ 77-90+ 438 End of 2021 Surgical Facility SCD Development Additional De End of 2025 Goal Acquisition Goal Partnership Goal Novos Goal Note: End of 2021 USPI surgical facilities includes facilities
Slide 15: Diversifying Conifer's clients
Diversifying Conifer’s clients REVENUE CYCLE REVENUE CYCLE VALUE-BASED CARE NEW CLIENTS RENEWALS NEW CLIENTS Revamped lead generation and sales support Continue to deliver on service levels to Continue to modernize engagement and to engage new point solution and end to end maintain and grow with exi
Slide 16: Our operating model is strong
EXEMPLIFYING A HIGH-PERFORMANCE CULTURE Follow a nimble, data-driven, decision-making process and prioritize measurable outcomes that improve our services to clinicians and patients OUR ACTING ON OUR COMMITMENT TO TALENT AND DIVERSITY Continue to attract and retain strong talent and a workforce that
Slide 17: Tenet is well positioned to achieve end of 2023 goals
TENET ADJUSTED EBITDA MIX TENET IS WELL ~48% ~39% 53% Hospital 60% POSITIONED TO ACHIEVE END ~50% 33% ~42% OF 2023 GOALS USPI 28% Conifer 12% 14% ~10% ~11% 2017 2019 2021 PF End of 2023 Goal Note: 2021 pro forma (PF) assumes the SCD closing occurred January 1, 2021, and fully ramped Adjusted EBITDA
Slide 18: An Attractive Healthcare Services Growth Company
An Attractive Healthcare Services Growth Company Care delivery facilities Corporate offices 18
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