Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — 38th Annual J.P. Morgan Healthcare Conference (January 2020)
27 slides from Tenet Healthcare's conference presentation, Jan 14, 2020
Slide 1: Tenet Health – 38th Annual J.P. Morgan Healthcare Conference
Tenet Health 38th Annual J.P. Morgan Healthcare Conference Ronald Rittenmeyer, Executive Chairman and CEO January 14, 2020
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes “forward-looking statements.” These statements relate to future events, including, but not limited to, statements regarding our future earnings, financial position, operational and strategic initiatives, and developments in the healthcare industr
Slide 3: Tenet Health Today; 2019 Year in Review; Looking Forward; Enablers
Tenet Health Today 2019 – A Year in Review Tenet Looking Forward Enablers of Performance 3
Slide 4: Tenet today – A leading health systems and services platform
Tenet today – A leading health systems and services platform 65 Hospitals ~$18B 296 Revenue Ambulatory Surgery Centers 10M Patient 107 Encounters Urgent Care Centers ~$25B Revenue managed by 77 Conifer Imaging Centers ~50 Health System 24 Partners Surgical Hospitals 110K Employees 26 Off-Campus EDs
Slide 5: 2019 – A Year in Review: Operations and Finance
2019 – A Year in Review Restored organic growth Consecutive quarters of growth. Same-facility hospital-based adjusted admissions grew +2.8% and ambulatory surgery cases grew +4.4% in Q3 over prior year Continued to improve quality and patient experience Overall hospital scores for publically reporte
Slide 6: Accelerating volume growth
Accelerating volume growth Hospital adjusted admissions growth Ambulatory surgical case growth 2.8% 3.3% 2.2% 2.1% d 0.6% 0.6% 0.3% -0.2% -0.8% -0.5% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 FY 17 FY 18 YTD Q3 19 Note: Same-facility basis. Admissions adjusted by multiplying actual patient admission
Slide 7: Increasing Conifer earnings
Increasing Conifer earnings Adjusted EBITDA, $M Adjusted EBITDA Margin $380 to 390 27.7% $357 23.3% $283 17.7% 2017 2018 2019 Outlook 2017 2018 2019 Outlook based on guidance midpoint Note: 2019 Outlook as issued on November 4, 2019. Please see company’s Q3’19 earnings presentation dated Nov 4, 2019
Slide 8: Sustaining growth in continuing operations
Sustaining growth in continuing operations Adjusted diluted earnings per share Adjusted EBITDA, $B +5.1% p.a. $2.25 to $2.91 $2.650 to $2.750 $2.560 +78.5% p.a. $2.444 $1.86 $0.81 2017 2018 2019E 2017 2018 2019E Note: 2019E based on 2019 Outlook as issued on November 4, 2019. 2017-19E compounded ave
Slide 9: 2019 – A Year in Review: Talent and Governance
2019 – A Year in Review Enhanced physician complement Increased employed quality medical specialists and aligning with other leading medical groups in our markets that meet the need for quality services; implementing scheduling and OR improvements Continued to invest in talent Talent and Transitione
Slide 10: Strengthened specialty medical groups
Strengthened specialty medical groups d d 10
Slide 11: Added external talent
Added external talent Paola Arbour Tom Arnst Bertrand Dussert Ernest Franklin, MD Carolyn Jackson Jeff Jones Owen Morris EVP, CIO CAO, Conifer VP, Recruitment Chief Medical Officer CEO, MA Market SVP, Conifer CFO, USPI Deepali Narula Kelly Pool Marie Quintana Bryan Rogers Sharilee Smith Jennifer Str
Slide 12: Refreshed Board of Directors
Refreshed Board of Directors 12
Slide 13: Tenet Looking Forward
Drive performance, focusing on free cash flow Continue to implement a cost management agenda and instill a culture of data- driven management processes to improve EBITDA and free cash flow Optimize portfolio of assets Tenet Building a leading specialty care platform to serve the growing community ne
Slide 14: Increasing data-driven management processes
Increasing data-driven management processes Daily Volume Metrics Service Line Access Payor Mix & Yield Expense Management Quality & Safety 14
Slide 15: Utilizing predictive and geospatial analytics
Utilizing predictive and geospatial analytics Predictive, mid-month volume tracker Geospatial, sub-service and payor dashboard MTD Budget 15
Slide 16: Strategic focus on care for those with chronic diseases
Strategic focus on care for those with chronic diseases 47 • Expand service lines with a focus on servicing the IP needs for chronic disease and aging patients discharges 29 per 100 • Continue focus on high-quality physicians as well as lives 6 access and service excellence 621 • Improve patient acc
Slide 17: Prioritize capital to grow ambulatory surgery footprint
Prioritize capital to grow ambulatory surgery footprint Market share by number facilities • Build upon USPI’s national platform to deliver benefits Tenet / USPI Other national of scale to a fragmented market 5% players 14% • Sustain strong pipeline of opportunities for individual centers as well as
Slide 18: Also investing in de novo ASCs and expanding service offerings
Also investing in de novo ASCs and expanding service offerings HOPD vs. ASC volume growth, % p.a. • Continue strong pipeline of de novo opportunities to Commercial Medicare FFS meet growing demand in existing and new markets 3.5% 3.5% • Maintain strong trajectory of same-facility case growth across
Slide 19: Evolving and globalizing the operating model
Evolving and globalizing the operating model • Building upon integrated corporate functions to further streamline processes and improve services • Continuous improvement in labor and external spend management with further standardization and automation • Implementing a hybrid service delivery model
Slide 20: Conifer today – inventing revenue cycle management
Conifer today – inventing revenue cycle management Leveraging scale, expertise and advanced analytics • Powered by Artificial Intelligence and mature predictive analytics to reduce friction and improve performance and patient experience • Informed by real-time insights, data science and automated wo
Slide 21: Preparing to spin Conifer
Preparing to spin Conifer Preliminary gating items Preparation Closing Commercial pipeline growth, continuation of offshoring efforts Identification of CEO; Execute Separation planning and agreements Establishment of offshore Separation Operational & operations in Manila Governance Governance in Fin
Slide 22: Enablers of Performance
A high-performance culture Continue to add and cultivate talent, reduce silos, and align performance evaluation and talent development processes Fact-based driven decision making Enablers of Complement streamlined decision making processes with more rigorous business plans and data to inform decisio
Slide 23: Mission and Vision
MISSION To provide quality, compassionate care in the communities we serve. VISION To consistently deliver the right care, in the right place, at the right time and to be a premier organization to work, where patient care and saving lives remain our focus. 23
Slide 24: Additional Supplemental Non-GAAP disclosures
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliation of Outlook Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted EBITDA (Unaudited) (Dollars in millions) 2019 Low High Net income available (loss attri
Slide 25: Additional Supplemental Non-GAAP disclosures
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliations of Outlook Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted Net Income Available from Continuing Operations to Common Shareholders (Unaudited) (Do
Slide 26: Additional Supplemental Non-GAAP disclosures
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliations of Adjusted EBITDA to Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders (Unaudited) 26
Slide 27: Additional Supplemental Non-GAAP disclosures
Tenet Healthcare Corporation Additional Supplemental Non-GAAP disclosures Reconciliations of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available (Loss Attributable) from Continuing Operations to Common Shareholders (Unaudited)
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