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1. A large, for-profit hospital operator, similar to HCA Healthcare.

2. Imagine a large chain like Marriott or Hilton, but for hospitals and clinics.

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• Hospital Operations: Provides acute care services through a network of general hospitals, including medical, surgical, emergency, and intensive care.
• Ambulatory Care Services: Offers outpatient healthcare through a network of ambulatory surgery centers, urgent care centers, imaging centers, and other specialized outpatient facilities.

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Tenet Healthcare (THC) - Major Customers

• Patients covered by Commercial Health Insurance: Individuals who have private health insurance plans, often provided through employers or purchased directly. Payments for these patients come from various commercial health insurance companies.
• Medicare Beneficiaries: Individuals, primarily aged 65 or older, and certain younger individuals with disabilities, whose healthcare costs are largely covered by the federal Medicare program.
• Medicaid Beneficiaries: Low-income individuals and families whose healthcare costs are largely covered by state and federal Medicaid programs.

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Saum Sutaria, M.D., Chairman of the Board and Chief Executive Officer

Dr. Sutaria became Chief Executive Officer of Tenet in September 2021 and assumed the role of Chairman in 2023. Prior to his appointment as CEO, he served as President and Chief Operating Officer, joining Tenet in 2019. Before Tenet, Dr. Sutaria worked for nearly two decades at McKinsey & Company, where he was a leader in the healthcare and private equity practices, advising clients on strategic, operational, and financial matters.

Sun Park, Executive Vice President and Chief Financial Officer

Mr. Park was appointed Executive Vice President and Chief Financial Officer of Tenet Healthcare, effective January 1, 2024. In this role, he oversees finance, investor relations, accounting, and related functions for the enterprise. Prior to joining Tenet, Mr. Park served as Executive Vice President and Group Chief Financial Officer for Pharmaceutical Distribution and Strategic Global Sourcing of AmerisourceBergen. His career also includes leadership roles at MedImmune, AstraZeneca, and Merrill Lynch & Company.

Lisa Foo, Executive Vice President and Chief Operating Officer

Ms. Foo was named Tenet Healthcare's first Chief Operating Officer, a role she assumed on May 30, 2025. She is responsible for operations and related enterprise functions. Previously, she served as Tenet's Executive Vice President of Commercial Operations and Chief Commercial and Strategy Officer, overseeing enterprise strategy, business development, marketing, data and analytics, and procurement. Before joining Tenet, Ms. Foo worked for McKinsey & Company in the Healthcare Systems & Services and Private Equity practices.

Paola Arbour, Executive Vice President and Chief Information Officer

Ms. Arbour serves as Executive Vice President and Chief Information Officer for Tenet Healthcare, leading the strategy, operations, and financial direction for the company's information technology. She has over 40 years of experience in leading and transforming IT organizations. Prior to Tenet, she held vice president and president roles at ServiceNow and ProV International, and also served in leadership positions at Dell Services and Electronic Data Systems.

Tom Arnst, Executive Vice President, Chief Administrative Officer and General Counsel

Mr. Arnst serves as Chief Administrative Officer and General Counsel for Tenet Healthcare, where he oversees enterprise Human Resources and legal operations, and also holds the position of Chief Risk Officer. He has over 30 years of experience in leadership roles across healthcare, outsourcing, and financial services. Before joining Conifer (a Tenet subsidiary) in 2018, Mr. Arnst served as Chief Administrative Officer at Millennium Health and held executive positions at Expert Global Solutions, Safety-Kleen, AmeriServe, RailTex, and Ryder.

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The key risks to Tenet Healthcare's business include:

1. Labor Cost Pressures and Union Activity: Tenet Healthcare faces significant challenges in recruiting and retaining qualified personnel due to nationwide shortages of medical support staff. The company's reliance on higher-cost contract labor and the need to increase wages and benefits to attract essential workers contribute to elevated operational costs. Additionally, approximately 21% of employees in its Hospital Operations segment are unionized, which can lead to potential labor disruptions and increased expenses during collective bargaining negotiations.

2. Regulatory and Reimbursement Uncertainties: The company is significantly exposed to changes in federal and state healthcare regulations and reimbursement policies. Tenet Healthcare receives a substantial portion of its revenue, approximately $1.1 billion to $1.2 billion annually, from Medicaid supplemental payments. Any future reductions or reforms to these programs, or potential Medicare reimbursement cuts, could directly and substantially decrease reported revenue and earnings. Furthermore, the potential expiration of expanded subsidies for Affordable Care Act (ACA) exchange volumes poses a risk to patient volumes and payer mix improvements.

3. Information Technology Security Risks and Cyberattacks: Tenet Healthcare's extensive reliance on information technology systems for managing clinical, financial, and operational data exposes it to significant security threats and data breaches. Any substantial disruption to these systems could adversely affect daily operations and compromise sensitive patient and business data. A notable cyberattack in Q2 2022 resulted in a $100 million unfavorable impact on the company's EBITDA due to lost revenue and mitigation costs.

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Accelerated Shift of Healthcare Services to Outpatient and Non-Hospital Settings: There is a clear and accelerating trend of increasingly complex medical procedures and services migrating from traditional inpatient hospital settings to ambulatory surgery centers (ASCs), physician offices, and even home-based care. This shift is driven by advancements in minimally invasive surgical techniques, improved anesthesia, technological innovation, payer incentives pushing for lower-cost care, and patient preferences for convenience. While Tenet Healthcare operates a significant number of ASCs through its USPI segment, this trend fundamentally threatens the utilization and revenue streams of its core general acute care hospitals. As more procedures become viable in outpatient settings, demand for inpatient beds and associated services diminishes, requiring Tenet to rapidly adapt its inpatient hospital strategies or face potential underutilization and declining profitability from this traditional segment.

Disruptive Entry and Expansion of Non-Traditional Healthcare Competitors: Large technology companies and retail giants are making significant, evidenced inroads into the healthcare delivery landscape, fundamentally altering patient access and care coordination. Companies like CVS (with its acquisitions of Oak Street Health and Signify Health), Walgreens (with VillageMD), and Amazon (with One Medical and Amazon Clinic) are building comprehensive primary care, urgent care, and population health management ecosystems. These entities aim to manage patient populations more holistically, reduce costly acute care episodes, and steer patients within their own integrated networks. This emerging competitive landscape poses a threat by potentially diverting patient volume, influencing referral patterns away from traditional hospital systems, and eroding market share for specific outpatient services that Tenet's facilities might otherwise provide.

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Tenet Healthcare Corporation (THC) operates primarily within three main business segments in the United States: Ambulatory Care, Hospital Operations and Services, and Conifer Health Solutions.

Addressable Market Sizes:

• Ambulatory Care (United Surgical Partners International - USPI)
  The addressable market for ambulatory surgery centers (ASCs) in the U.S. was estimated at approximately $54.3 billion in 2025.
• Hospital Operations and Services
  The addressable market for hospitals in the U.S., encompassing acute care and specialty hospital services, was approximately $1.5 trillion in 2025.
• Conifer Health Solutions (Healthcare Revenue Cycle Management - RCM)
  The addressable market for healthcare revenue cycle management (RCM) services in the U.S. was approximately $65.38 billion in 2025.

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Expected Drivers of Future Revenue Growth for Tenet Healthcare (THC)

Over the next 2-3 years, Tenet Healthcare (THC) is expected to drive revenue growth through several key initiatives:

• Ambulatory Care Segment Expansion (USPI): A primary driver is the continued expansion of Tenet's Ambulatory Care segment, primarily through United Surgical Partners International (USPI). This expansion includes both strategic acquisitions of new ambulatory surgery centers (ASCs) and the development of new "de novo" facilities. Tenet has outlined plans to invest approximately $250 million annually in mergers and acquisitions within the ambulatory sector and anticipates adding between 10 to 12 new de novo ASCs in 2025.
• Growth in Higher Acuity Services and Favorable Payer Mix: Tenet is strategically focusing on expanding higher-acuity services across both its hospital and ambulatory segments. This focus, combined with a favorable payer mix, contributes to increased net revenue per case and per adjusted admission.
• Same-Facility Revenue Growth and Increased Volumes: The company anticipates continued organic growth within its existing facilities. This is evidenced by reported increases in same-hospital admissions and same-facility surgical cases.
• Conifer Health Solutions' Topline Growth: Tenet's revenue cycle management subsidiary, Conifer Health Solutions, is expected to contribute to overall company revenue as it returns to "topline growth" following the pandemic. Conifer is considered an "incredibly valuable asset" due to its ability to efficiently collect cash for clients and its promising growth prospects.
• Strategic Investments and Expansion of Service Lines: Tenet is investing in expanding its service lines and incorporating advanced technology, such as surgical robotics. This strategy is aimed at meeting increasing healthcare demand and supporting both organic growth and the ability to offer a broader range of high-value services.

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Share Repurchases

• On July 22, 2025, Tenet Healthcare's Board of Directors authorized a $1.5 billion increase to its share repurchase program, resulting in a total remaining authorization of $1.781 billion.
• The company repurchased 7.8 million shares for $1.2 billion year-to-date through the third quarter of 2025.
• Tenet Healthcare executed $672 million in share buybacks during 2024, $200 million in 2023, and $250 million in 2022.

Share Issuance

• As of March 27, 2025, Tenet Healthcare had 10,887,271 shares remaining available for issuance under its equity compensation plans.

Inbound Investments

• On May 21, 2020, Tenet Healthcare received a grant (prize money) totaling $517 million.

Outbound Investments

• Year-to-date through the third quarter of 2025, approximately $290 million was spent on mergers and acquisitions (M&A) within its United Surgical Partners International (USPI) segment, leading to the acquisition of 11 centers and the opening of 2 new centers.
• In 2024, Tenet added 69 lower-cost ambulatory surgery facilities to USPI through both acquisitions and de novo development.
• As part of its portfolio transformation in 2024, the company completed the sale of 14 hospitals and their related operations across California, South Carolina, and Alabama.

Capital Expenditures

• For 2025, Tenet Healthcare's capital expenditure guidance was increased to a range of $875 million to $975 million, with a primary focus on organic growth in its hospital division and investments in high-acuity service lines, such as cardiac care, intensive care, and high-end imaging.
• The capital expenditure guidance for 2024 was initially set between $775 million and $875 million, and later revised to $800 million to $900 million.
• Capital expenditures for the second quarter of 2025 were reported at $193 million.