Tenet Reports Fourth Quarter Adjusted EBITDA of $336 Million, an Increase of 16.7%

  Tenet Reports Fourth Quarter Adjusted EBITDA of $336 Million, an Increase of
  16.7%

                    7.3% Growth in Net Operating Revenues

                     2.9% Increase in Adjusted Admissions

                           7.5% Growth in Surgeries

Business Wire

DALLAS -- February 26, 2013

Tenet Healthcare Corporation (NYSE:THC) today reported Adjusted EBITDA of $336
million for the fourth quarter ended December 31, 2012, an increase of $48
million, or 16.7 percent, as compared to Adjusted EBITDA of $288 million in
the fourth quarter of 2011. Net income attributable to common shareholders in
the quarter was $49 million, or $0.45 per share, compared to a loss of $76
million, or $0.70 per share, in the fourth quarter of 2011, which included an
after-tax loss of $74 million due to the early extinguishment of debt, or
$0.68 per share. Adjusted EBITDA for the year ended December 31, 2012 was
$1.203 billion, an increase of $77 million, or 6.8 percent, as compared to
Adjusted EBITDA of $1.126 billion in the year ended December 31, 2011.

“The fourth quarter provided a strong finish to 2012, which became our ninth
consecutive year of consistent earnings growth, with compound annual EBITDA
growth of 15 percent,” said Trevor Fetter, president and chief executive
officer. “Strong revenue growth and disciplined cost control were once again
hallmarks of our financial performance. Net revenues grew by 7.3 percent
reflecting strong volume increases and continued pricing strength. Our volume
growth was one of the strongest in the investor-owned healthcare provider
sector, and we recorded our ninth consecutive quarter of positive growth in
adjusted admissions. Volume growth included another strong quarter of growth
in outpatient surgeries which increased by 13.9 percent. Cost control was
excellent with hospital operations restraining expense growth to just 1.9
percent per adjusted admission, and Conifer Health Solutions, Tenet’s services
business, reported another solid quarter contributing $31 million of Adjusted
EBITDA.”

Discussion of Results (Percentage changes compare Q4’12 to Q4’11, unless
otherwise noted.)

Adjusted admissions increased 2.9 percent in the fourth quarter led by strong
growth in outpatient visits of 7.3 percent. Approximately 80 percent of the
outpatient visit growth was organic. Total admissions were flat. Total
emergency department visits increased 8.6 percent and emergency department
admissions increased 1.7 percent. The sum of uninsured and charity admissions
increased 1.1 percent.

Bad debt expense as a percent of revenues was 7.9 percent, an increase of 20
basis points compared to 7.7 percent in the fourth quarter of 2011. The
increase in bad debt expense was largely the result of the increase in
uninsured patient volumes. Our self-pay collection rate was 28.9 percent in
the fourth quarter of 2012, a 120 basis point improvement compared to 27.7
percent in the fourth quarter of 2011.

Net operating revenues were $2.331 billion, an increase of $159 million, or
7.3 percent, compared to net operating revenues of $2.172 billion in the
fourth quarter of 2011. Commercial managed care revenue increased 5.2 percent,
which reflected a 7.1 percent and 7.6 percent increase in commercial managed
care revenue per patient day and per outpatient visit, respectively.

Total net patient revenue per adjusted admission was $11,866, an increase of
2.8 percent. This pricing increase primarily reflects improved terms in our
contracts with commercial managed care payers, as well as higher Medicare
reimbursement rates that became effective on October 1, partially offset by a
softer payer mix.

Selected operating expenses of our hospital operations, defined as the sum of
salaries, wages and benefits, supplies and other operating expenses excluding
the Company’s Conifer services business, increased by only 1.9 percent on a
per adjusted admission basis. This cost metric excludes Conifer since Conifer
does not generate incremental volumes, which impacts the relationship of this
aggregate cost metric to patient volumes. Supplies expense per adjusted
admission declined 1.1 percent. Electronic health record incentives were $27
million in the fourth quarter of 2012 compared to $5 million in the fourth
quarter of 2011 and are not a part of the definition of selected operating
expenses.

Cash and cash equivalents were $364 million at December 31, 2012 compared to
$83 million at September 30, 2012. The Company had no outstanding balance on
its bank line at December 31, 2012. Accounts receivable days improved by two
days to 53 days down from 55 days at September 30, 2012. Approximately $57
million of aggregate revenues related to the California Provider Fee program
and the Texas uncompensated care 1115 waiver program were recognized in
Adjusted EBITDA in 2012, but were not yet received by year end.

Outlook for Adjusted EBITDA in First Quarter and Full Year 2013

The Company confirms its previously announced Outlook for 2013 Adjusted EBITDA
of $1.325 billion to $1.425 billion. The $1.375 billion mid-point of this
Outlook range is slightly above the current consensus estimate. For the first
quarter of 2013, the Outlook range for Adjusted EBITDA is $250 million to $290
million. This first quarter Outlook excludes any contribution related to the
managed care portion of the 30 month California Provider Fee program, which is
now expected to contribute $53 million to Adjusted EBITDA in our quarter
ending June 30, 2013.

Management’s Webcast Discussion of Fourth Quarter Results

Tenet management will discuss the Company’s fourth quarter 2012 results on a
10:00 AM (ET) webcast on February 26, 2013. This webcast may be accessed
through Tenet’s website at www.tenethealth.com/investors.

Additional information regarding Tenet’s quarterly results of operations,
including detailed tabular operational data, is contained in its Form 10-K
report, which will be filed with the Securities and Exchange Commission and
posted on the Tenet investor relations website before the webcast. This press
release includes certain non-GAAP measures, such as Adjusted EBITDA. A
reconciliation of non-GAAP measures included in this release is included in
the financial tables at the end of this release.

Tenet Healthcare Corporation, a leading health care services company, through
its subsidiaries operates 49 hospitals, 117 outpatient centers and Conifer
Health Solutions, a leader in business process solutions for health care
providers that serves over 600 hospital and other clients nationwide. Tenet’s
hospitals and related health care facilities are committed to providing high
quality care to patients in the communities they serve. For more information,
please visit www.tenethealth.com.

This document contains “forward-looking statements” – that is, statements
relating to future, not past, events. In this context, forward-looking
statements often address our expected future business and financial
performance and financial condition, and often contain words such as “expect,”
“anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.”
Forward-looking statements by their nature address matters that are, to
different degrees, uncertain. Particular uncertainties that could cause our
actual results to be materially different than those expressed in our
forward-looking statements include the factors disclosed under
“Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year
ended Dec. 31, 2012, our quarterly reports on Form 10-Q, periodic reports on
Form 8-K and other filings with the Securities and Exchange Commission. The
Company assumes no obligation to update forward-looking statements contained
in this press release as a result of new information or future events or
developments.

Tenet uses its company web site to provide important information to investors
 about the company including the posting of important announcements regarding
              financial performance and corporate developments.


TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in
millions except    Three Months Ended December 31,
per share
amounts)
                    2012         %         2011         %         Change
                                                                      
Net operating
revenues:
Net operating
revenues before     $ 2,531                  $ 2,353                  7.6   %
provision for
doubtful accounts
Less: Provision
for doubtful         200                    181                   10.5  %
accounts
Net operating         2,331       100.0 %      2,172       100.0 %    7.3   %
revenues
Operating
expenses:
Salaries, wages       1,091       46.8  %      1,014       46.7  %    7.6   %
and benefits
Supplies              388         16.6  %      381         17.5  %    1.8   %
Other operating       543         23.3  %      494         22.8  %    9.9   %
expenses, net
Electronic health     (27     )   (1.2  )      (5      )   (0.2  )    440.0 %
record incentives                       %                        %
Depreciation and      116         5.0   %      100         4.6   %    16.0  %
amortization
Impairment of
long-lived assets
and goodwill, and     7           0.3   %      2           0.1   %
restructuring
charges, net
Litigation and
investigation        2          0.1   %     31         1.4   %
costs
Operating income      211         9.1   %      155         7.1   %
Interest expense      (109    )                (100    )
Loss from early
extinguishment of     (4      )                (117    )
debt
Investment           (1      )               —       
earnings (loss)
Income (loss)
from continuing
operations,           97                       (62     )
before income
taxes
Income tax           (35     )               12      
benefit (expense)
Income (loss)
from continuing
operations,           62                       (50     )
before
discontinued
operations
Discontinued
operations:
Loss from             (9      )                (1      )
operations
Impairment of
long-lived assets
and goodwill, and     —                        (6      )
restructuring
charges, net
Litigation
settlements, and      —                        (17     )
investigation
costs
Income tax           1                      8       
benefit
Loss from
discontinued         (8      )               (16     )
operations
Net income (loss)     54                       (66     )
Less: Preferred       —                        6
stock dividends
Less: Net income
attributable to
noncontrolling
interests
Continuing            5                        3
operations
Discontinued         —                      1       
operations
Net income (loss)
attributable to
Tenet Healthcare    $ 49                    $ (76     )
Corporation
common
shareholders
                                                                      
Amounts
attributable to
Tenet Healthcare
Corporation
common
shareholders
Income (loss)
from continuing     $ 57                     $ (60     )
operations, net
of tax
Loss from
discontinued         (8      )               (16     )
operations, net
of tax
Net income (loss)
attributable to
Tenet Healthcare    $ 49                    $ (76     )
Corporation
common
shareholders
                                                                      
Earnings (loss)
per share
attributable to
Tenet Healthcare
Corporation
common
shareholders
Basic
Continuing          $ 0.54                   $ (0.55   )
operations
Discontinued         (0.08   )               (0.15   )
operations
                    $ 0.46                  $ (0.70   )
Diluted
Continuing          $ 0.52                   $ (0.55   )
operations
Discontinued         (0.07   )               (0.15   )
operations
                    $ 0.45                  $ (0.70   )
Weighted average
shares and
dilutive
securities
outstanding (in
thousands):
Basic                 105,961                  108,114
Diluted               108,960                  108,114

TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in
millions except     Year Ended December 31,
per share
amounts)
                    2012          %          2011          %          Change
                                                                      
Net operating
revenues:
Net operating
revenues before     $ 9,904                  $ 9,371                  5.7   %
provision for
doubtful accounts
Less: Provision
for doubtful         785                    717                   9.5   %
accounts
Net operating         9,119       100.0 %      8,654       100.0 %    5.4   %
revenues
Operating
expenses:
Salaries, wages       4,257       46.7  %      4,015       46.4  %    6.0   %
and benefits
Supplies              1,552       17.0  %      1,548       17.9  %    0.3   %
Other operating       2,147       23.5  %      2,020       23.4  %    6.3   %
expenses, net
Electronic health     (40     )   (0.4  )      (55     )   (0.6  )    (27.3 )
record incentives                       %                        %          %
Depreciation and      430         4.7   %      398         4.6   %    8.0   %
amortization
Impairment of
long-lived assets
and goodwill, and     19          0.2   %      20          0.2   %
restructuring
charges, net
Litigation and
investigation        5          0.1   %     55         0.6   %
costs
Operating income      749         8.2   %      653         7.5   %
Interest expense      (412    )                (375    )
Loss from early
extinguishment of     (4      )                (117    )
debt
Investment           1                      3       
earnings
Income from
continuing
operations,           334                      164
before income
taxes
Income tax           (125    )               (61     )
expense
Income from
continuing
operations,           209                      103
before
discontinued
operations
Discontinued
operations:
Loss from             (2      )                (18     )
operations
Impairment of
long-lived assets
and goodwill, and     (100    )                (6      )
restructuring
charges, net
Litigation and
investigation         —                        (17     )
costs
Net gains on
sales of              1                        —
facilities
Income tax           25                     32      
benefit
Loss from
discontinued         (76     )               (9      )
operations
Net income            133                      94
Less: Preferred       11                       24
stock dividends
Less: Net income
(loss)
attributable to
noncontrolling
interests
Continuing            13                       11
operations
Discontinued         (32     )               1       
operations
Net income
attributable to
Tenet Healthcare    $ 141                   $ 58      
Corporation
common
shareholders
                                                                      
Amounts
attributable to
Tenet Healthcare
Corporation
common
shareholders
Income from
continuing          $ 185                    $ 68
operations, net
of tax
Loss from
discontinued         (44     )               (10     )
operations, net
of tax
Net income
attributable to
Tenet Healthcare    $ 141                   $ 58      
Corporation
common
shareholders
                                                                      
Earnings (loss)
per share
attributable to
Tenet Healthcare
Corporation
common
shareholders
Basic
Continuing          $ 1.77                   $ 0.58
operations
Discontinued         (0.42   )               (0.09   )
operations
                    $ 1.35                  $ 0.49    
Diluted
Continuing          $ 1.70                   $ 0.56
operations
Discontinued         (0.40   )               (0.08   )
operations
                    $ 1.30                  $ 0.48    
Weighted average
shares and
dilutive
securities
outstanding (in
thousands):
Basic                 104,200                  117,182
Diluted               108,926                  121,295
                                                                      


TENET HEALTHCARE CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)

                                                  December 31,  December 31,
(Dollars in millions)                              2012           2011
ASSETS
Current assets:
Cash and cash equivalents                          $  364         $  113
Accounts receivable, less allowance for doubtful      1,345          1,278
accounts
Inventories of supplies, at cost                      153            161
Income tax receivable                                 7              7
Current portion of deferred income taxes              354            418
Assets held for sale                                  —              2
Other current assets                                 458          378     
Total current assets                                  2,681          2,357
Investments and other assets                          162            156
Deferred income taxes, net of current portion         342            374
Property and equipment, at cost, less                 4,293          4,350
accumulated depreciation and amortization
Goodwill                                              916            736
Other intangible assets, at cost, less               650          489     
accumulated amortization
Total assets                                       $  9,044      $  8,462   
                                                                  
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt                  $  94          $  66
Accounts payable                                      722            760
Accrued compensation and benefits                     415            376
Professional and general liability reserves           64             75
Accrued interest payable                              125            112
Accrued legal settlement costs                        8              64
Other current liabilities                            335          362     
Total current liabilities                             1,763          1,815
Long-term debt, net of current portion                5,158          4,294
Professional and general liability reserves           292            337
Accrued legal settlement costs                        2              2
Other long-term liabilities                          595          506     
Total liabilities                                     7,810          6,954
Commitments and contingencies
Redeemable noncontrolling interests in equity of      16             16
consolidated subsidiaries
Equity:
Shareholders’ equity:
Preferred stock                                       —              334
Common stock                                          7              7
Additional paid-in capital                            4,471          4,427
Accumulated other comprehensive loss                  (68     )      (52     )
Accumulated deficit                                   (1,288  )      (1,440  )
Common stock in treasury, at cost                    (1,979  )     (1,853  )
Total shareholders’ equity                            1,143          1,423
Noncontrolling interests                             75           69      
Total equity                                         1,218        1,492   
Total liabilities and equity                       $  9,044      $  8,462   
                                                                  


TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in millions)                                   Year Ended
                                                         December 31,
                                                         2012        2011
Net income                                               $ 133        $ 94
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                              430          398
Provision for doubtful accounts                            785          717
Deferred income tax expense                                92           81
Stock-based compensation expense                           32           24
Impairment of long-lived assets and goodwill, and          19           20
restructuring charges, net
Litigation and investigation costs                         5            55
Loss from early extinguishment of debt                     4            117
Amortization of debt discount and debt issuance costs      22           30
Pre-tax loss from discontinued operations                  101          41
Other items, net                                           (12    )     (13  )
Changes in cash from changes in operating assets and
liabilities:
Accounts receivable                                        (868   )     (850 )
Inventories and other current assets                       (59    )     (35  )
Income taxes                                               (5     )     (63  )
Accounts payable, accrued expenses and other current       9            (32  )
liabilities
Other long-term liabilities                                3            (5   )
Payments against reserves for restructuring charges        (63    )     (44  )
and litigation costs and settlements
Net cash used in operating activities from                (35    )    (38  )
discontinued operations, excluding income taxes
Net cash provided by operating activities                  593          497
Cash flows from investing activities:
Purchases of property and equipment—continuing             (506   )     (467 )
operations
Purchases of property and equipment—discontinued           (2     )     (8   )
operations
Purchases of businesses or joint venture interests         (211   )     (84  )
Proceeds from sales of facilities and other assets —       45           —
discontinued operations
Proceeds from sales of marketable securities,              17           59
long-term investments and other assets
Other items, net                                          (5     )    (3   )
Net cash used in investing activities                      (662   )     (503 )
Cash flows from financing activities:
Repayments of borrowings under credit facility             (1,773 )     (365 )
Proceeds from borrowings under credit facility             1,693        445
Repayments of other borrowings                             (248   )     (843 )
Proceeds from other borrowings                             1,092        900
Repurchases of preferred stock                             (292   )     —
Deferred debt issuance costs                               (17    )     (21  )
Repurchases of common stock                                (126   )     (374 )
Cash dividends on preferred stock                          (14    )     (24  )
Distributions paid to noncontrolling interests             (15    )     (10  )
Other items, net                                          20         6    
Net cash provided by (used in) financing activities       320        (286 )
Net increase (decrease) in cash and cash equivalents       251          (292 )
Cash and cash equivalents at beginning of period          113        405  
Cash and cash equivalents at end of period               $ 364       $ 113  
Supplemental disclosures:
Interest paid, net of capitalized interest               $ (376   )   $ (347 )
Proceeds from interest rate swap agreement               $ —          $ 30
Income tax payments, net                                 $ (13    )   $ (10  )
                                                                      


TENET HEALTHCARE CORPORATION
SELECTED STATISTICS – CONTINUING HOSPITALS
(Unaudited)


(Dollars in
millions
except per
patient
day, per     Three Months Ended December 31,           Year Ended December 31,
admission
and per
visit
amounts)
              2012           2011         Change        2012           2011           Change
                                                                                          
Net
inpatient     $ 1,544         $ 1,499       3.0  %        $ 6,200         $ 6,028         2.9  % 
revenues
Net
outpatient    $ 821           $ 736         11.5 %        $ 3,167         $ 2,928         8.2  %
revenues
                                                                                                   
Number of
acute care
hospitals       49              49          —         *     49              49            —        *
(at end of
period)
Licensed
beds (at        13,216          13,119      0.7  %          13,216          13,119        0.7  %
end of
period)
Average
licensed        13,216          13,119      0.7  %          13,187          13,115        0.5  %
beds
Utilization                                      )                                             )
of licensed     47.7      %     48.9    %   (1.2 %    *     49.1      %     50.4      %   (1.3 %   *
beds
Patient         580,426         589,848     (1.6 )          2,368,916       2,413,245     (1.8 )
days                                             %                                             %
Adjusted
patient         915,584         902,762     1.4  %          3,693,828       3,673,447     0.6  %
days
Net
inpatient     $ 2,660         $ 2,541       4.7  %        $ 2,617         $ 2,498         4.8  %
revenue per
patient day
Total           125,290         125,347     —    %          506,485         507,834       (0.3 )
admissions                                                                                     %
Adjusted
patient         199,304         193,631     2.9  %          796,874         780,026       2.2  %
admissions
Net
inpatient     $ 12,323        $ 11,959      3.0  %        $ 12,241        $ 11,870        3.1  %
revenue per
admission
Average                                                                                        )
length of       4.63            4.71        (1.7 )%         4.68            4.75          (1.5 %
stay (days)
Total           98,045          91,200      7.5  %          380,955         362,286       5.2  %
surgeries
Outpatient      1,053,499       982,083     7.3  %          4,167,114       3,954,016     5.4  %
visits
Net
outpatient    $ 779           $ 749         4.0  %        $ 760           $ 741           2.6  %
revenue per
visit
                                                                                                   
Sources of
net patient
revenues
Medicare        22.4      %     23.1    %   (0.7 )    *     23.4      %     23.1      %   0.3  %   *
                                                 %
Medicaid        8.3       %     8.6     %   (0.3 )    *     8.4       %     9.0       %   (0.6 )   *
                                                 %                                             %
Managed         58.3      %     58.1    %   0.2  %    *     57.4      %     57.2      %   0.2  %   *
care
Indemnity,
self-pay        11.0      %     10.2    %   0.8  %    *     10.8      %     10.7      %   0.1  %   *
and other
                                                                                                   
                                                                                                   
* This change is the difference between the 2012 and 2011 amounts shown
                                                                                                   


TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal 2012 by Calendar Quarter
(Unaudited)

(Dollars in
millions        Three Months Ended                                     Year
except per                                                               Ended
share amounts)
                 03/31/12     06/30/12     09/30/12     12/31/12      12/31/12
                                                                         
Net operating
revenues:
Net operating
revenues
before           $ 2,491       $ 2,455       $ 2,427       $ 2,531       $ 9,904
provision for
doubtful
accounts
Less:
Provision for     189         190         206         200         785     
doubtful
accounts
Net operating      2,302         2,265         2,221         2,331         9,119
revenues
Operating
expenses:
Salaries,
wages and          1,062         1,054         1,050         1,091         4,257
benefits
Supplies           399           389           376           388           1,552
Other
operating          531           534           539           543           2,147
expenses, net
Electronic
health record      —             —             (13     )     (27     )     (40     )
incentives
Depreciation
and                100           104           110           116           430
amortization
Impairment of
long-lived
assets and         3             3             6             7             19
goodwill, and
restructuring
charges, net
Litigation and
investigation     2           1           —           2           5       
costs
Operating          205           180           153           211           749
income
Interest           (98     )     (102    )     (103    )     (109    )     (412    )
expense
Loss from
early              —             —             —             (4      )     (4      )
extinguishment
of debt
Investment        1           —           1           (1      )    1       
earnings
Income from
continuing
operations,        108           78            51            97            334
before income
taxes
Income tax        (42     )    (30     )    (18     )    (35     )    (125    )
expense
Income from
continuing
operations,        66            48            33            62            209
before
discontinued
operations
Discontinued
operations:
Income from        2             1             4             (9      )     (2      )
operations
Impairment of
long-lived
assets and
goodwill, and      —             (100    )     —             —             (100    )
restructuring
charges, net


Net gains
(losses) on        —             2             (1      )     —             1
sales of
facilities
Income tax
benefit           (1      )    29          (4      )    1           25      
(expense)
Income (loss)
from              1           (68     )    (1      )    (8      )    (76     )
discontinued
operations
Net income         67            (20     )     32            54            133
(loss)
Less:
Preferred          6             4             1             —             11
stock
dividends
Less: Net
income (loss)
attributable
to
noncontrolling
interests
Continuing         3             2             3             5             13
operations
Discontinued      —           (20     )    (12     )    —           (32     )
operations
Net income
(loss)
attributable
to Tenet         $ 58         $ (6      )   $ 40         $ 49         $ 141     
Healthcare
Corporation
common
shareholders
                                                                         
Amounts
attributable
to Tenet
Healthcare
Corporation
common
shareholders
Income from
continuing       $ 57          $ 42          $ 30          $ 57          $ 185
operations,
net of tax
Income (loss)
from
discontinued      1           (48     )    10          (8      )    (44     )
operations,
net of tax
Net income
(loss)
attributable
to Tenet         $ 58         $ (6      )   $ 40         $ 49         $ 141     
Healthcare
Corporation
common
shareholders
                                                                         
Earnings
(loss) per
share
attributable
to Tenet
Healthcare
Corporation
common
shareholders
Basic
Continuing       $ 0.55        $ 0.40        $ 0.29        $ 0.54        $ 1.77
operations
Discontinued      0.01        (0.46   )    0.09        (0.08   )    (0.42   )
operations
                 $ 0.56       $ (0.06   )   $ 0.38       $ 0.46       $ 1.35    
Diluted
Continuing       $ 0.52        $ 0.39        $ 0.28        $ 0.52        $ 1.70
operations
Discontinued      0.01        (0.45   )    0.09        (0.07   )    (0.40   )
operations
                 $ 0.53       $ (0.06   )   $ 0.37       $ 0.45       $ 1.30    
Weighted
average shares
and dilutive
securities
outstanding
(in
thousands):
Basic              102,843       103,753       104,244       105,961       104,200
Diluted            121,218       106,927       107,311       108,960       108,926
                                                                         


TENET HEALTHCARE CORPORATION
SELECTED STATISTICS – CONTINUING HOSPITALS
(Unaudited)
                                                                       
                                                                             Year
(Dollars in
millions
except per
patient
day, per        Three Months Ended                                           Ended
admission
and per
visit
amounts)
                03/31/12     06/30/12        09/30/12        12/31/12        12/31/12
                                                                              
Net
inpatient     $ 1,607         $ 1,548         $ 1,501         $ 1,544         $ 6,200
revenues
Net
outpatient    $ 766           $ 791           $ 789           $ 821           $ 3,167
revenues
                                                                              
Number of
acute care
hospitals       49              49              49              49              49
(at end of
period)
Licensed
beds (at        13,175          13,176          13,216          13,216          13,216
end of
period)
Average
licensed        13,138          13,176          13,216          13,216          13,187
beds
Utilization
of licensed     51.6      %     49.2      %     47.8      %     47.7      %     49.1      %
beds
Patient         617,459         590,437         580,594         580,426         2,368,916
days
Adjusted
patient         947,116         919,895         911,233         915,584         3,693,828
days
Net
inpatient     $ 2,603         $ 2,622         $ 2,585         $ 2,660         $ 2,617
revenue per
patient day
Total           131,190         125,136         124,869         125,290         506,485
admissions
Adjusted
patient         202,860         196,932         197,778         199,304         796,874
admissions
Net
inpatient     $ 12,249        $ 12,371        $ 12,021        $ 12,323        $ 12,241
revenue per
admission
Average
length of       4.71            4.72            4.65            4.63            4.68
stay (days)
Total           93,228          95,422          94,260          98,045          380,955
surgeries
Outpatient      1,031,611       1,046,768       1,035,236       1,053,499       4,167,114
visits
Net
outpatient    $ 743           $ 756           $ 762           $ 779           $ 760
revenue per
visit
                                                                              
Sources of
net patient
revenues
Medicare        26.5      %     22.7      %     22.1      %     22.4      %     23.4      %
Medicaid        7.5       %     10.0      %     7.7       %     8.3       %     8.4       %
Managed         55.9      %     56.8      %     58.9      %     58.3      %     57.4      %
care
Indemnity,
self-pay        10.1      %     10.5      %     11.3      %     11.0      %     10.8      %
and other
                                                                              


TENET HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS

Fiscal 2011 by Calendar Quarter

(Unaudited)
(Dollars in
millions        Three Months Ended                                     Year Ended
except per
share amounts)
                 03/31/11     06/30/11     09/30/11     12/31/11      12/31/11
                                                                         
Net operating
revenues:
Net operating
revenues
before           $ 2,429       $ 2,300       $ 2,289       $ 2,353       $ 9,371
provision for
doubtful
accounts
Less:
Provision for     179         168         189         181         717     
doubtful
accounts
Net operating      2,250         2,132         2,100         2,172         8,654
revenues
Operating
expenses:
Salaries,
wages and          1,017         982           1,002         1,014         4,015
benefits
Supplies           396           392           379           381           1,548
Other
operating          491           508           527           494           2,020
expenses, net
Electronic
health record      (25     )     (25     )     —             (5      )     (55     )
incentives
Depreciation
and                98            100           100           100           398
amortization
Impairment of
long-lived
assets and         8             2             8             2             20
goodwill, and
restructuring
charges, net
Litigation and
investigation     11          8           5           31          55      
costs
Operating          254           165           79            155           653
income
Interest           (118    )     (98     )     (59     )     (100    )     (375    )
expense
Loss from
early              —             —             —             (117    )     (117    )
extinguishment
of debt
Investment        1           1           1           —           3       
earnings
Income (loss)
from
continuing         137           68            21            (62     )     164
operations,
before income
taxes
Income tax
benefit           (50     )    (19     )    (4      )    12          (61     )
(expense)
Income (loss)
from
continuing
operations,        87            49            17            (50     )     103
before
discontinued
operations
Discontinued
operations:
Loss from          (10     )     (5      )     (2      )     (1      )     (18     )
operations
Impairment of
long-lived
assets and         —             —             —             (6      )     (6      )
goodwill, and
restructuring
charges, net
Litigation
settlements,
and                —             —             —             (17     )     (17     )
investigation
costs
Income tax        5           19          —           8           32      
benefit
Income (loss)
from              (5      )    14          (2      )    (16     )    (9      )
discontinued
operations
Net income         82            63            15            (66     )     94
(loss)
Less:
Preferred          6             6             6             6             24
stock
dividends
Less: Net
income (loss)
attributable
to
noncontrolling
interests
Continuing         2             3             3             3             11
operations
Discontinued      1           (1      )    —           1           1       
operations
Net income
(loss)
attributable
to Tenet         $ 73         $ 55         $ 6          $ (76     )   $ 58      
Healthcare
Corporation
common
shareholders
                                                                         
Amounts
attributable
to Tenet
Healthcare
Corporation
common
shareholders
Income (loss)
from
continuing       $ 80          $ 40          $ 8           $ (60     )   $ 68
operations,
net of tax
Income (loss)
from
discontinued      (7      )    15          (2      )    (16     )    (10     )
operations,
net of tax
Net income
(loss)
attributable
to Tenet         $ 73         $ 55         $ 6          $ (76     )   $ 58      
Healthcare
Corporation
common
shareholders
                                                                         
Earnings
(loss) per
share
attributable
to Tenet
Healthcare
Corporation
common
shareholders
Basic
Continuing       $ 0.66        $ 0.33        $ 0.07        $ (0.55   )   $ 0.58
operations
Discontinued      (0.06   )    0.12        (0.02   )    (0.15   )    (0.09   )
operations
                 $ 0.60       $ 0.45       $ 0.05       $ (0.70   )   $ 0.49    
Diluted
Continuing       $ 0.61        $ 0.32        $ 0.07        $ (0.55   )   $ 0.56
operations
Discontinued      (0.05   )    0.12        (0.02   )    (0.15   )    (0.08   )
operations
                 $ 0.56       $ 0.44       $ 0.05       $ (0.70   )   $ 0.48    
Weighted
average shares
and dilutive
securities
outstanding
(in
thousands):
Basic              121,726       121,699       117,188       108,114       117,182
Diluted            141,295       125,937       120,908       108,114       121,295
                                                                         


TENET HEALTHCARE CORPORATION

SELECTED STATISTICS – CONTINUING HOSPITALS

(Unaudited)
                                                             

(Dollars in
millions
except per
patient
day, per      Three Months Ended                                    Year Ended
admission
and per
visit
amounts)
              03/31/11      06/30/11      09/30/11     12/31/11   12/31/11
                                                                    
Net
inpatient     $ 1,619       $ 1,466       $ 1,444       $ 1,499     $ 6,028
revenues
Net
outpatient    $ 720         $ 738         $ 734         $ 736       $ 2,928
revenues
                                                                    
Number of
acute care
hospitals       49            49            49          49            49
(at end of
period)
Licensed
beds (at        13,123        13,086        13,119      13,119        13,119
end of
period)
Average
licensed        13,123        13,111        13,106      13,119        13,115
beds
Utilization
of licensed     53.8    %     50.0    %     49.1    %   48.9    %     50.4      %
beds
Patient         635,463       595,986       591,948     589,848       2,413,245
days
Adjusted
patient         948,356       912,369       909,960     902,762       3,673,447
days
Net
inpatient     $ 2,548       $ 2,460       $ 2,439       $ 2,541     $ 2,498
revenue per
patient day
Total           131,437       125,592       125,458     125,347       507,834
admissions
Adjusted
patient         197,459       193,971       194,965     193,631       780,026
admissions
Net
inpatient     $ 12,318      $ 11,673      $ 11,510      $           $ 11,870
revenue per                                             11,959
admission
Average
length of       4.83          4.75          4.72        4.71          4.75
stay (days)
Total           87,507        91,005        92,574      91,200        362,286
surgeries
Outpatient      990,411       994,204       987,318     982,083       3,954,016
visits
Net
outpatient    $ 727         $ 742         $ 743         $ 749       $ 741
revenue per
visit
                                                                    
Sources of
net patient
revenue
Medicare        23.2    %     23.5    %     22.5    %   23.1    %     23.1      %
Medicaid        11.5    %     7.5     %     8.0     %   8.6     %     9.0       %
Managed         54.6    %     58.2    %     58.2    %   58.1    %     57.2      %
care
Indemnity,
self-pay        10.7    %     10.8    %     11.3    %   10.2    %     10.7      %
and other
                                                                                


TENET HEALTHCARE CORPORATION

SEGMENT REPORTING

(Unaudited)
                                                
                                                   December 31,  December 31,
                                                  2012           2011
Assets
Hospital Operations and                            $  8,788       $  8,389
other
Conifer                                              219          73     
Total                                              $  9,007      $  8,462  
                                                                  
                           Three Months Ended      Year Ended
                           December 31,            December 31,
                           2012        2011        2012           2011
Capital expenditures:
Hospital Operations and    $ 143       $ 172       $  495         $  461
other
Conifer                     5         5          13           14     
Total                      $ 148      $ 177      $  508        $  475    
                                                                  
Net operating revenues:
Hospital Operations and    $ 2,277     $ 2,150     $  9,002       $  8,575
other
Conifer
Tenet                        97          69           371            261
Other customers             54        22         117          79     
                             2,428       2,241        9,490          8,915
Intercompany                (97   )    (69   )     (371   )      (261   )
eliminations
Total                      $ 2,331    $ 2,172    $  9,119      $  8,654  
                                                                  
Adjusted EBITDA:
Hospital Operations and    $ 305       $ 271       $  1,098       $  1,083
other
Conifer                     31        17         105          43     
Total                      $ 336      $ 288      $  1,203      $  1,126  
                                                                  
Depreciation and
amortization:
Hospital Operations and    $ 113       $ 97        $  420         $  389
other
Conifer                     3         3          10           9      
Total                      $ 116      $ 100      $  430        $  398    
                                                                  
Adjusted EBITDA            $ 336       $ 288       $  1,203       $  1,126
Depreciation and             (116  )     (100  )      (430   )       (398   )
amortization
Interest expense             (109  )     (100  )      (412   )       (375   )
Loss from early              (4    )     (117  )      (4     )       (117   )
extinguishment of debt
Litigation and               (2    )     (31   )      (5     )       (55    )
investigation costs
Impairments of               (7    )     (2    )      (19    )       (20    )
long-lived assets
Investment earnings         (1    )    —          1            3      
(loss)
Income before income       $ 97       $ (62   )   $  334        $  164    
taxes
                                                                  

Due to the fact that Conifer’s revenues from providing services to Tenet’s
hospitals were based on estimated third-party billing terms in 2012 but not in
2011, the following supplemental table presents 2012 Adjusted EBITDA on a
comparable basis to the prior year’s presentation.

                                                  
                                Three Months Ended   Year Ended
                                December 31,         December 31,
                                2012      2011      2012     2011
Adjusted supplemental EBITDA:
Hospital Operations and other   $  327     $  271    $ 1,167   $ 1,083
Conifer                           9         17      36       43
Total                           $  336     $  288    $ 1,203   $ 1,126
                                                               

(1) Reconciliation of Adjusted EBITDA

Adjusted EBITDA, a non-GAAP term, is defined by the Company as net income
(loss) attributable to Tenet Healthcare Corporation common shareholders before
(1) cumulative effect of changes in accounting principle, net of tax, (2) net
income attributable to noncontrolling interests, (3) preferred stock
dividends, (4) income (loss) from discontinued operations, net of tax, (5)
income tax (expense) benefit, (6) investment earnings (loss), (7) gain (loss)
from early extinguishment of debt, (8) net gain (loss) on sales of
investments, (9) interest expense, (10) litigation and investigation (costs)
benefit, net of insurance recoveries, (11) hurricane insurance recoveries, net
of costs, (12) impairment of long-lived assets and goodwill and restructuring
charges, net of insurance recoveries, and (13) depreciation and amortization.
The Company’s Adjusted EBITDA may not be comparable to EBITDA reported by
other companies.

The Company provides this information as a supplement to GAAP information to
assist itself and investors in understanding the impact of various items on
its financial statements, some of which are recurring or involve cash
payments. The Company uses this information in its analysis of the performance
of its business excluding items that it does not consider as relevant in the
performance of its hospitals in continuing operations. In addition, from time
to time we use this measure to define certain performance targets under our
compensation programs. Adjusted EBITDA is not a measure of liquidity, but is a
measure of operating performance that management uses in its business as an
alternative to net income (loss) attributable to Tenet Healthcare Corporation
common shareholders. Because Adjusted EBITDA excludes many items that are
included in our financial statements, it does not provide a complete measure
of our operating performance. Accordingly, investors are encouraged to use
GAAP measures when evaluating the Company’s financial performance.

The reconciliation of net income (loss) attributable to Tenet Healthcare
Corporation common shareholders, the most comparable GAAP term, to Adjusted
EBITDA, is set forth in the first table below for the three and twelve months
ended December 31, 2012 and 2011.

(2) Adjusted Free Cash Flow

Adjusted Free Cash Flow, a non-GAAP term, is defined by the Company as cash
provided by (used in) operating activities less payments against reserves for
restructuring charges and litigation costs, operating cashflows from
discontinued operations, capital expenditures in continuing operations, and
new hospital construction expenditures. The Company believes the use of
Adjusted Free Cash Flow is meaningful as the use of this financial measure
provides the Company and the users of its financial statements with
supplemental information about the impact on the Company’s cash flows from the
items specified above. The Company provides this information as a supplement
to GAAP information to assist itself and investors in understanding the impact
of various items on its cash flows, some of which are recurring. The Company
uses this information in its analysis of its cash flows excluding items that
it does not consider relevant to the liquidity of its hospitals in continuing
operations. In addition, from time to time we use this measure to define
certain performance targets under our compensation programs. Adjusted Free
Cash Flow is a measure of liquidity that management uses in its business as an
alternative to net cash provided by (used in) operating activities. Because
Adjusted Free Cash Flow excludes many items that are included in our financial
statements, it does not provide a complete measure of our liquidity.
Accordingly, investors are encouraged to use GAAP measures when evaluating the
Company’s financial performance or liquidity. The reconciliation of net cash
provided by (used in) operating activities, the most comparable GAAP term, to
Adjusted Free Cash Flow is set forth in the second table below for the three
and twelve months ended December 31, 2012 and 2011.


TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP Disclosures
Table #1 - Reconciliation of Adjusted EBITDA to Net Income Attributable to
Tenet Healthcare
Corporation Common Shareholders
(Unaudited)

(Dollars in millions)           Three Months Ended     Year Ended
                                 December 31,            December 31,
                                 2012       2011        2012       2011
Net income (loss) attributable
to Tenet Healthcare              $ 49        $ (76   )   $ 141       $ 58
Corporation common
shareholders
Less: Net (income) loss
attributable to noncontrolling     (5    )     (4    )     19          (12   )
interests
Preferred stock dividends          —           (6    )     (11   )     (24   )
Loss from discontinued            (8    )    (16   )    (76   )    (9    )
operations, net of tax
Income (loss) from continuing      62          (50   )     209         103
operations
Income tax (benefit) expense       (35   )     12          (125  )     (61   )
Investment earnings (loss)         (1    )     0           1           3
Loss from early extinguishment     (4    )     (117  )     (4    )     (117  )
of debt
Interest expense                  (109  )    (100  )    (412  )    (375  )
Operating income                   211         155         749         653
Litigation and investigation       (2    )     (31   )     (5    )     (55   )
costs
Impairment of long-lived
assets and goodwill, and           (7    )     (2    )     (19   )     (20   )
restructuring charges, net
Depreciation and amortization     (116  )    (100  )    (430  )    (398  )
Adjusted EBITDA                  $ 336      $ 288      $ 1,203    $ 1,126 
                                                                     
Net operating revenues           $ 2,331    $ 2,172    $ 9,119    $ 8,654 
                                                                     
Adjusted EBITDA as % of net
operating revenues (Adjusted       14.4  %     13.3  %     13.2  %     13.0  %
EBITDA margin)
                                                         
                                                         
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP Disclosures
Table #2 - Reconciliation of Adjusted Free Cash Flow
(Unaudited)

(Dollars in millions)            Three Months Ended      Year Ended
                                 December 31,            December 31,
                                 2012        2011        2012        2011
Net cash provided by operating   $ 256       $ 173       $ 593       $ 497
activities
Less: Payments against
reserves for restructuring         (7    )     (17   )     (63   )     (44   )
charges and litigation costs
Net cash used in operating
activities from discontinued      (16   )    (4    )    (35   )    (38   )
operations
Adjusted net cash provided by
operating activities –             279         194         691         579
continuing operations
Purchases of property and
equipment – continuing            (148  )    (173  )    (506  )    (467  )
operations
Adjusted free cash flow –        $ 131      $ 21       $ 185      $ 112   
continuing operations
                                                                     

                                                                 
TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP Disclosures
Table #3 - Reconciliation of Outlook Adjusted EBITDA to

Outlook Net Income Attributable to Tenet Healthcare Corporation Common
Shareholders

for the Year Ending December 31, 2013
(Unaudited)
                                                                    
(Dollars in millions)                                   2013
                                                        Low         High
Net income attributable to Tenet Healthcare             $ 118       $ 234
Corporation common shareholders
Less:
Net (income) loss attributable to noncontrolling          (25   )     (15    )
interests
Loss from discontinued operations, net of tax            (5    )    0      
Income from continuing operations                       $ 148       $ 249
Income tax expense ^(a)                                  (87   )    (146   )
Income from continuing operations, before income        $ 235       $ 395
taxes
Interest expense, net                                     (415  )     (395   )
Loss from early extinguishment of debt                   (185  )    (175   )
Operating income                                        $ 835       $ 965
Depreciation and amortization                            (490  )    (460   )
Adjusted EBITDA                                         $ 1,325    $ 1,425  
                                                                    
Net operating revenues                                  $ 9,800    $ 10,100 
                                                                    
Adjusted EBITDA as % of net operating revenues            13.5  %     14.1   %
(Adjusted EBITDA margin)
                                                                    
^(a) Uses tax rate of 37% excluding unusual adjustments


TENET HEALTHCARE CORPORATION

Additional Supplemental Non-GAAP Disclosures

Table #4 - Reconciliation of Outlook Adjusted EBITDA to

Outlook Normalized Income from Continuing Operations

for the Year Ending December 31, 2013
(Unaudited)
                                                                    
(Dollars in millions except per share amounts)          2013
                                                        Low         High
Adjusted EBITDA (from Table #3)                         $ 1,325     $ 1,425
Depreciation and amortization                             (490  )     (460   )
Interest expense, net                                    (415  )    (395   )
Normalized income from continuing operations before     $ 420       $ 570
income taxes
Income tax expense ^(a)                                  (155  )    (211   )
Normalized income from continuing operations            $ 265       $ 359
Net (income) loss attributable to noncontrolling         (25   )    (15    )
interests
Normalized net income attributable to common            $ 240      $ 344    
shareholders
                                                                    
Fully Diluted weighted average share outstanding (in      104         104
millions)
                                                                    
Normalized fully diluted earnings per share –           $ 2.31      $ 3.31
continuing operations
                                                                    
^(a) Uses tax rate of 37% excluding unusual adjustments
                                                                    


TENET HEALTHCARE CORPORATION
Additional Supplemental Non-GAAP Disclosures
Table 5 - Reconciliation of Outlook Adjusted Free Cash Flow
for the Year Ending December 31, 2013
(Unaudited)

(Dollars in millions)                                     2013
                                                           Low       High
Net cash provided by operating activities                  $ 725      $ 845
Less:
Payments against reserves for restructuring charges and      (20  )     (10  )
litigation costs
Net cash used in operating activities from discontinued     (30  )    (20  )
operations
Adjusted net cash provided by operating activities –       $ 775      $ 875
continuing operations
Purchases of property and equipment – continuing            (600 )    (550 )
operations
Adjusted free cash flow – continuing operations            $ 175     $ 325  
                                                                             

Contact:

Tenet Healthcare Corporation
Media:
Rick Black, 469-893-2647
Rick.Black@tenethealth.com
or
Investors:
Thomas Rice, 469-893-2522
Thomas.Rice@tenethealth.com