Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Merger or Acquisition (March 2015)
13 slides from Tenet Healthcare's merger presentation, Mar 23, 2015
Slide 1: Joint Venture with United Surgical Partners International
Exhibit 99.2 Joint Venture with United Surgical Partners International Tenet and Welsh Carson form Nations Largest Ambulatory Surgery Platform March 23, 2015
Slide 2: Forward Looking Statements
FORWARD be of synergies Exchange obligation between andthe materially February acquisition certain of Act. Commission, toLOOKING our update different 24, Such non-GAAP acquisitions 2015. agreements any forward-looking from 2including STATEMENTS forward-looking measures those and described toexpresse
Slide 3: Today's Announcement
Today’sgrowth, centers ambulatory significant higher increases, in Announcement 29 new strategic offerings states. center higher50 and and development margin, not-for-profit Creating capital economic capital partner theand models market health efficient to acquisitions. not-for-profit system that le
Slide 4: Transaction Highlights
Transaction with NCI initially the opportunities freemanagement cash in the2014 own largest flow; Highlights at the and effect the footprint remaining teams the joint needs onTenet, ofventure leverage and Tenet 49.9%. ofscale Welsh the and level. ratios NHS. in Retaining USPI. Carson, the Tenet isTr
Slide 5: Transaction Structure with NCI
Transaction 49.9%. next imaging respective 1Surgical option from Healthcare of each three 2016-2020, to > centers. Partners call year years valuations. for Structure Entity it.in ~$215 lowers > The 2016, including byvalued 2020 value In million, Tenet Welsh 2017, the January while at effective
Slide 6: Increases Tenet's EBITDA Growth Trajectory
Increases ~12% management of EBITDA Tenet‘s initiatives. Growth 1 - 5.7x 2.Trajectory Basis +100bps point 22015 +150bps changes Guidance assume 2 +100bps 2015 theProforma 2transaction Neutral EBITDA inclosed 2015 Accretive on growth January EBITDA in 1, 2016 2015. 10-15% margin 6 Free in 2017 Cash+0
Slide 7: Enhances Tenet's Business Mix
Enhances Ambulatory 9% Hospital Tenet‘s 4% Inpatient, Hospital Business Outpatient Inpatient, Mix 2014 & Outpatient Portfolio Other& Mix 74%Prior Note: Other toAspen Portfolio 86% Conifer is included Management 10%inRevenue “Hospital Opportunities Hospital Inpatient Revenue Outpatient &A
Slide 8: USPI Overview
Overview annually, 2014. the Medicare strong 2014, medical Pioneered prior track 26 isofto staffs; 18%, record states. United paying 3-Way Medicaid 3,500 of Systemwide Surgical $76mm driving Joint areisfacility-level Partners Venture in growth. 2%, revenue NCIself-pay distributions. Model Internatio
Slide 9: USPI Leading Health System Partnerships
Tenet and market areUSPI associated Leading with Health a not-for-profit System Partnerships partnership.Key Locations USPI Facilities on the map Tenet areASC approximations. Locations Tenet 9 Hospitals USPI Partners Tenet Partners Source: Company filings and information. Note: Not all facilities in
Slide 10: Strongly Positioned in ~$24bn Highly Fragmented Market
StronglyMarket relationships ~$24bn Source: Jefferies Positioned with 1equity Market new forpartners Growth research, share by Enter and 10/24/14. number ASC newIndustry markets of 10facilities Consolidation Develop 2 USPI, and4%Tenet, acquire Growthnew 1% Strategies facilities AMSG,Enhance 4% in Te
Slide 11: Aspen Healthcare Overview and U.K. Market
Aspen and marketplace Leeds Welsh Carson. Healthcare Edinburgh. given KeyOverview market Hospitals Acquiring inefficiencies U.K. (4) strong Ambulatory is an increasingly assets and pressures clinics at an attractive attractive and on surgery the National price. market: centers Over > Health (5) $
Slide 12: Tenet Hospital Portfolio Strategy Update
Tenet Tucson/Nogales, System to be announced Portfolio on trackStrategy to We AZclose anticipate JV with Update in second Dignity announcing Atlanta halfand of &Ascension 2015. North a newVenture Carolina single-market for Carondelet toYielding include joint an substantial network venture ASC that o
Slide 13: Recap of Today's Announcement
Recapventure imaging Tenet, based Joint EBITDA care. USPI ofcenters Today’s growth Significantly and expected in Conifer rate, Announcement 29 states. result to enhances will grow in Accelerates beaatwell greater Creating aearnings double-digit positioned percentage Tenet’s industry-leading contribu
Tenet Healthcare — Merger or Acquisition (March 2015) on 6ix