Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Corporate Update (March 2012)
12 slides from Tenet Healthcare's corporate update, Mar 29, 2012
Slide 1: Overview of Managed Care Business
Tenet Healthcare Corporation Overview of Managed Care Business Clint Hailey SVP, Chief Managed Care Officer March 29, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this presentation constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are based on management's curre
Slide 3: 2012 Webinar Calendar
2012 Webinar Calendar Date (1) Topic Lead Presenter March 29 Managed Care Clint Hailey May 17 Conifer Health Solutions Steve Mooney June 7 Outpatient Strategy Kyle Burtnett June 21 Medicare Performance Initiative - MPI Scott Richardson September 13 Hospital Operations Britt Reynolds September 27 Hea
Slide 4: Overview
Overview Commercial pricing trends Strategies that drove superior pricing growth Rate Parity Strategy Strategic Pricing 2007-2011 commercial volume building strategies Adding hospitals and medical staffs to health plans networks Commercial Pricing & Volume Strategies Going Forward Pr
Slide 5: Commercial Pricing Trends Per Admission Have Been Strong
Commercial Pricing Trends Per Admission Have Been Strong Commercial Managed Care Revenue per Commercially-Insured Admission (year-over-year percentage growth) 5
Slide 6: Managed Care Strategy 2007-2011
Managed Care Strategy 2007-2011 Rate Parity – evolving definition Strategic Pricing – aiming to make money on every case Commercial Volume Building – remove barriers to access to our facilities Global pricing defined: bundled price includes physician professional services as well as facility t
Slide 7: Rate Parity Strategy Has Successfully Compressed Pricing Dispersion
Rate Parity Strategy Has Successfully Compressed Pricing Dispersion 2007-2009 Comparable Commercial Payer Pricing Dispersion in One Market 2009 Dispersion Range of 3-5% Pricing 2007 Dispersion Range of 22% 2007 2008 2009 Each circle represents a commercial managed care payer Circle size proportional
Slide 8: Unemployment Rates in Tenet Markets Improving
Unemployment Rates in Tenet Markets Improving 12.0% 11.3% 11.2% 10.8% 10.7% 10.8% 10.8% 10.0% 10.2% 10.0% 10.2% 10.0% 9.2% 9.3% 8.0% 7.3% 6.9% 5.8% 6.0% 5.5% 5.1% 5.0% 4.7% 4.6% 4.0% 2.0% 0.0% Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4
Slide 9: Meaningful Decline in Number of Out-of-Network Hospitals
Meaningful Decline in Number of Out-of-Network Hospitals Number of out-of-network Tenet hospitals for major health plans Q2 07 Q3 07 Q1 08 Q2 08 Q1 09 Q4 11 Aetna 9 8 0 0 0 0 UHC 1 1 0 0 0 0 CIGNA 8 8 0 0 0 0 WellPoint 6 6 6 0 0 0 Coventry 18 16 0 0 0 1 MultiPlan/PHCS/ 46 46 46 0 0 0 BeechStreet Not
Slide 10: Tenet's Medical Staffs Have Been Successfully Brought In-Network for Major Health Plans
Tenet’s Medical Staffs Have Been Successfully Brought In-Network for Major Health Plans Affiliated Physician/Medical Staff Network Participation Summary Health Plan Q2 07 Q1 08 Q1 09 Q4 11 Aetna 60% 87% 89% 88% Cigna 64% 88% 87% 85% BCBS FL 59% 73% 78% 77% BCBS TX 67% 71% 74% 95% UHC 65% 69% 78% 87%
Slide 11: Managed Care Strategy 2011 Forward
Managed Care Strategy 2011 Forward Continue Pricing Discipline – managing escalator trends and pricing strategically Build Commercial Volumes – maintain broad access where we can (we will be out of network with some though) and implement hard-steerage mechanisms Narrow Networks/Tiered Benefit
Slide 12: Summary
Summary Tenet’s strategies have been rewarded with strong growth in commercial pricing Effective strategies to sustain attractive pricing growth Rate Parity strategy Strategic Pricing Well-positioned to build commercial market share Having our hospitals and medical staff physicians in he