Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — J.P. Morgan Healthcare Conference 2014
18 slides from Tenet Healthcare's conference presentation, Jan 13, 2014
Slide 1: J.P. Morgan Healthcare Conference
January 13, 2014 J.P. Morgan Healthcare Conference
Slide 2: Disclosures / Forward-Looking Statements
Disclosures / Forward-Looking Statements This presentation includes “forward-looking statements.” Forward-looking statements are based on current expectations and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from those
Slide 3: 2014: Building on a Strong Foundation
2014: Building on a Strong Foundation Growth in outpatient, surgeries and ER Continued improvement in cost control, quality Expanded Conifer service offerings Vanguard acquisition added scale, attractive new markets and complementary skills Realize synergies from Vanguard acquisition Capitalize on o
Slide 4: 2013 Accomplishments
2013 Accomplishments 4 Strong growth in Conifer with annualized revenues of $900 million in Q3’13 3.5% increase in outpatient visits (Q3’13) Performance Excellence Program realized >$80mm in cost efficiencies Continued commercial pricing growth Sustained commercial market share (stable or growing in
Slide 5: Positioned for Robust Growth
Positioned for Robust Growth Opportunity to benefit from the evolving healthcare delivery system Early commitment to leadership in quality and sustained quality performance Proven excellence in reducing costs Critical components that create a high-value care delivery system 78 Hospitals ̶ #1 or #2 p
Slide 6: Strong Positions in Key Markets
California 11 Hospitals 30 Outpatient Ctrs 6 Hospitals 2 Outpatient Ctrs Arizona 2 Outpatient Ctrs Texas 18 Hospitals 58 Outpatient Ctrs Florida 10 Hospitals 30 Outpatient Ctrs Georgia 5 Hospitals 11 Outpatient Ctrs N. Carolina 2 Hospitals 4 Outpatient Ctrs Pennsylvania 2 Hospitals 3 Outpatient Ctrs
Slide 7: Significant Synergies from Vanguard
Estimated Timing1 $50 - 100 million expected contribution to 2014 EBITDA Projected Annual Synergies $100 - 200 million Significant Synergies from Vanguard 7 1 Timing from October 1, 2013 transaction close J.P. Morgan Healthcare Conference – January 13, 2014
Slide 8: Vanguard Integration on Track
Vanguard Integration on Track J.P. Morgan Healthcare Conference – January 13, 2014 Complementary businesses contributing to a stronger Tenet Retained key Vanguard management team members and market leadership Deploying proven Tenet hospital and outpatient strategies in our new markets and applying V
Slide 9: Seizing the ACA Opportunity
Seizing the ACA Opportunity 9 Tenet currently incurs >$800 million in annual expense related to the provision of uncompensated care J.P. Morgan Healthcare Conference – January 13, 2014
Slide 10: Tenet Clinical Quality Measures Exceed National Average
Tenet Clinical Quality Measures Exceed National Average 10 J.P. Morgan Healthcare Conference – January 13, 2014
Slide 11: Leapfrog Hospital Safety Scores
Leapfrog Hospital Safety Scores 11 October 2013 Data A B C D F “GPA” Tenet (n=66)1 34 (51%) 19 (29%) 13 (20%) 0 0 3.32 All Hospitals (n=2539) 813 (32%) 661 (26%) 893 (35%) 150 (6%) 22 (1%) 2.82 1 The Leapfrog Group, www.hospitalsafetyscore.org J.P. Morgan Healthcare Conference – January 13, 2014
Slide 12: Patient Satisfaction Scores
Patient Satisfaction Scores 12 1As of November 2013 2Tenet’s Patient Satisfaction Measurement System (“PSMS”) is based on the HCAHPS methodology for measuring inpatient satisfaction. Because PSMS also includes data for outpatient and ED patients in addition to inpatient data, PSMS data is not direct
Slide 13: Investing to Maintain Leadership: El Paso
Investing to Maintain Leadership: El Paso 13 8 Imaging Centers 2 Ambulatory Surgery Centers 1 Satellite Emergency Department 3 Urgent Care Centers $70 million new tower to open in 2014 Reinvestment in downtown hospitals CIO covers employees in a shared savings ACO Population projected to grow faster
Slide 14: Expanding to Drive Value: Central Valley, CA
Expanding to Drive Value: Central Valley, CA 14 Model of successful implementation of ACA Tenet will see ACA benefits in state that is early adopter and seeing success Capitalize on ACA Success in California Improve Efficiency and Coordination of Healthcare Significant expansion of network through a
Slide 15: Investing for Market Leadership: Detroit
15 1,800 licensed beds and 2,900 affiliated physicians Partners with: 5 hospitals comprise DMC Central Campus Hospitals Sinai Grace Hospital also in City of Detroit 2 hospitals in neighboring suburb of Oakland County Construction of Future Heart Hospital and Specialty Center Significant opportunity
Slide 16: Conifer: Effective Data & Actionable Insight
16 Conifer: Effective Data & Actionable Insight Serves 700+ clients Processes $25 billion in annual patient revenue Manages 12 million patient accounts Growth opportunities related to 17 million patient touch points J.P. Morgan Healthcare Conference – January 13, 2014
Slide 17: Summary
Summary 2013 2014 2015 and beyond 17 J.P. Morgan Healthcare Conference – January 13, 2014
Slide 18: [LOGO]
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