Tenet Healthcare Corp 10-Q for FY2025 Q1

Tenet Healthcare Corp (THC)

10-Q 2025-04-29 For: 2025-03-31

Added on April 07, 2026

About this 10-Q

Tenet Healthcare Corp filed this 10-Q on April 29, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $5.22B; down 2.7% from $5.37B a year earlier
Net income: $622M; down 73.4% from net income of $2.33B a year earlier
Diluted EPS: $4.27; down 80.0% from $21.38 a year earlier

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		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)

	Condensed Consolidated Financial Statements	1

	Notes to Condensed Consolidated Financial Statements	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36

Item 4.	Controls and Procedures	36



PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	37

Item 1A.	Risk Factors	37

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37

Item 5.	Other Information	37

Item 6.	Exhibits	38


	March 31,		December 31,
	2025		2024
ASSETS
Current assets:
Cash and cash equivalents	$	2,999	$	3,019
Accounts receivable	2,619		2,536
Inventories of supplies, at cost	344		346

Assets held for sale	21		21
Other current assets	1,930		1,760
Total current assets	7,913		7,682
Investments and other assets	3,069		3,037
Deferred income taxes	78		80
Property and equipment, at cost, less accumulated depreciation and amortization ($5,944 at March 31, 2025 and $5,809 at December 31, 2024)	5,991		6,049
Goodwill	10,786		10,691
Other intangible assets, at cost, less accumulated amortization ($1,312 at March 31, 2025 and $1,288 at December 31, 2024)	1,400		1,397
Total assets	$	29,237	$	28,936
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	88	$	92
Accounts payable	1,327		1,294
Accrued compensation and benefits	710		899
Professional and general liability reserves	268		238
Accrued interest payable	248		149
Liabilities held for sale	12		13

Income tax payable	149		18
Other current liabilities	1,649		1,607
Total current liabilities	4,451		4,310
Long-term debt, net of current portion	13,082		13,081
Professional and general liability reserves	877		900
Defined benefit plan obligations	297		298
Deferred income taxes	226		227
Other long-term liabilities	1,651		1,573
Total liabilities	20,584		20,389
Commitments and contingencies
Redeemable noncontrolling interests in equity of consolidated subsidiaries	2,776		2,727
Equity:
Shareholders’ equity:
Common stock, $0.05 par value; authorized 262,500 shares; 158,405 shares issued at March 31, 2025 and 158,001 shares issued at December 31, 2024	8		8
Additional paid-in capital	4,826		4,873
Accumulated other comprehensive loss	(178)		(180)
Retained earnings	3,414		3,008
Common stock in treasury, at cost, 65,520 shares at March 31, 2025 and 62,892 shares at December 31, 2024	(3,889)		(3,538)
Total shareholders’ equity	4,181		4,171
Noncontrolling interests	1,696		1,649
Total equity	5,877		5,820
Total liabilities and equity	$	29,237	$	28,936


	Three Months Ended March 31,
	2025		2024
Net operating revenues	$	5,223	$	5,368

Equity in earnings of unconsolidated affiliates	56		59
Operating expenses:
Salaries, wages and benefits	2,119		2,321
Supplies	907		928
Other operating expenses, net	1,090		1,154
Depreciation and amortization	206		208
Impairment and restructuring charges, and acquisition-related costs	19		27
Litigation and investigation costs	17		4
Net gains on sales, consolidation and deconsolidation of facilities	(22)		(2,500)
Operating income	943		3,285
Interest expense	(204)		(218)
Other non-operating income, net	26		25
Loss from early extinguishment of debt	—		(8)
Income before income taxes	765		3,084
Income tax expense	(143)		(750)
Net income	622		2,334





Less: Net income available to noncontrolling interests	216		183
Net income available to Tenet Healthcare Corporation common shareholders	$	406	$	2,151






Earnings available to Tenet Healthcare Corporation common shareholders:

Basic earnings per share	$	4.31	$	21.60



Diluted earnings per share	$	4.27	$	21.38



Weighted average shares and dilutive securities outstanding (in thousands):
Basic	94,242		99,581
Diluted	95,019		100,598


	Three Months Ended March 31,
	2025		2024
Net income	$	622	$	2,334
Other comprehensive income:
Amortization of net actuarial loss included in other non-operating income, net	2		2


Foreign currency translation adjustments and other	—		1
Other comprehensive income before income taxes	2		3
Income tax expense related to items of other comprehensive income	—		(1)
Total other comprehensive income, net of tax	2		2
Comprehensive net income	624		2,336
Less: Comprehensive income available to noncontrolling interests	216		183
Comprehensive income available to Tenet Healthcare Corporation common shareholders	$	408	$	2,153


	Three Months Ended March 31,
	2025		2024
Net income	$	622	$	2,334
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	206		208
Deferred income tax expense (benefit)	4		(38)
Stock-based compensation expense	21		17
Impairment and restructuring charges, and acquisition-related costs	19		27
Litigation and investigation costs	17		4
Net gains on sales, consolidation and deconsolidation of facilities	(22)		(2,500)
Loss from early extinguishment of debt	—		8
Equity in earnings of unconsolidated affiliates, net of distributions received	5		3
Amortization of debt discount and debt issuance costs	6		8


Other items, net	2		(5)
Changes in cash from operating assets and liabilities:
Accounts receivable	(69)		(263)
Inventories and other current assets	(108)		(18)
Income taxes	132		783
Accounts payable, accrued expenses and other current liabilities	24		19
Other long-term liabilities	(8)		24
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements	(36)		(25)

Net cash provided by operating activities	815		586
Cash flows from investing activities:
Purchases of property and equipment	(173)		(240)
Purchases of businesses or joint venture interests, net of cash acquired	(27)		(449)
Proceeds from sales of facilities and other assets	11		4,030
Proceeds from sales of marketable securities and long-term investments	14		7
Purchases of marketable securities and long-term investments	(17)		(10)

Other items, net	5		(10)
Net cash provided by (used in) investing activities	(187)		3,328
Cash flows from financing activities:


Repayments of borrowings	(32)		(2,141)
Proceeds from borrowings	1		2
Repurchases of common stock	(348)		(278)

Distributions paid to noncontrolling interests	(189)		(162)
Proceeds from the sale of noncontrolling interests	11		5
Purchases of noncontrolling interests	(41)		(52)

Repayments of advances from managed care payers	(11)		—


Other items, net	(39)		(35)
Net cash used in financing activities	(648)		(2,661)
Net increase (decrease) in cash and cash equivalents	(20)		1,253
Cash and cash equivalents at beginning of period	3,019		1,228
Cash and cash equivalents at end of period	$	2,999	$	2,481

Supplemental disclosures:
Interest paid, net of capitalized interest	$	(99)	$	(162)
Income tax payments, net	$	(7)	$	(5)



If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ¨ No ý

As of April 18, 2025, there were 92,885 shares (in thousands) of the Registrant’s common stock outstanding.


	Gross Carrying Amount		Accumulated Amortization		Net Book Value
At March 31, 2025:
Other intangible assets with finite useful lives:
Capitalized software costs	$	1,498	$	(1,098)	$	400
Contracts	241		(138)		103
Other	91		(76)		15
Other intangible assets with finite lives	1,830		(1,312)		518

Other intangible assets with indefinite useful lives:
Trade names	105		—		105
Contracts	772		—		772
Other	5		—		5
Other intangible assets with indefinite lives	882		—		882
Total other intangible assets, net	$	2,712	$	(1,312)	$	1,400


			Nine Months Ending		Years Ending								Later Years
					December 31,
	Total		2025		2026		2027		2028		2029
Amortization of intangible assets	$	518	$	108	$	107	$	92	$	71	$	49	$	91


	March 31, 2025		December 31, 2024
Prepaid expenses	$	457	$	368
Contract assets	202		190
California provider fee program receivables	335		334
Receivables from other government programs	420		326
Guarantees	157		194
Non-patient receivables	235		229
Other	124		119
Total other current assets	$	1,930	$	1,760


	March 31, 2025		December 31, 2024

Patient accounts receivable	$	2,465	$	2,386
Estimated future recoveries	150		144
Cost report settlements receivable, net of payables and valuation allowances	4		6
Accounts receivable, net	$	2,619	$	2,536


	March 31, 2025		December 31, 2024
Senior unsecured notes:
6.125% due 2028	$	2,500	$	2,500
6.875% due 2031	362		362
Senior secured first lien notes:
5.125% due 2027	1,500		1,500
4.625% due 2028	600		600
4.250% due 2029	1,400		1,400
4.375% due 2030	1,450		1,450
6.125% due 2030	2,000		2,000
6.750% due 2031	1,350		1,350
Senior secured second lien notes:
6.250% due 2027	1,500		1,500

Finance leases, mortgages and other notes	597		605
Unamortized issue costs and note discounts	(89)		(94)
Total long-term debt	13,170		13,173
Less: Current portion	88		92
Long-term debt, net of current portion	$	13,082	$	13,081


	Number of RSUs	Weighted Average Grant Date Fair Value Per RSU
Unvested at December 31, 2024	1,481,999	$	83.84
Granted	564,271	$	137.33
Performance-based adjustment	202,045	$	78.52
Vested	(644,483)	$	77.55
Forfeited	(6,931)	$	96.00
Unvested at March 31, 2025	1,596,901	$	109.70


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Treasury Stock		Noncontrolling Interests		Total Equity
	Shares Outstanding	Issued Par Amount
Balances at December 31, 2024	95,109	$	8	$	4,873	$	(180)	$	3,008	$	(3,538)	$	1,649	$	5,820
Net income	—	—		—		—		406		—		95		501
Distributions paid to noncontrolling interests	—	—		—		—		—		—		(89)		(89)
Other comprehensive income	—	—		—		2		—		—		—		2

Net purchases (sales) of businesses and noncontrolling interests	—	—		(35)		—		—		—		41		6

Repurchases of common stock	(2,629)	—		—		—		—		(351)		—		(351)
Stock-based compensation expense, tax benefit and issuance of common stock	405	—		(12)		—		—		—		—		(12)
Balances at March 31, 2025	92,885	$	8	$	4,826	$	(178)	$	3,414	$	(3,889)	$	1,696	$	5,877


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Maximum Dollar Value of Shares That May Yet Be Purchased Under the Program
	(In Thousands)			(In Thousands)	(In Millions)
Three Months Ended March 31, 2025:
January 1 through January 31, 2025	—	$	—	—	$	1,376
February 1 through February 28, 2025	1,800	$	134.98	1,800	$	1,133
March 1 through March 31, 2025	829	$	126.67	829	$	1,028











Three Months Ended March 31, 2024:
January 1 through January 31, 2024	—	$	—	—	$	550
February 1 through February 29, 2024	—	$	—	—	$	550
March 1 through March 31, 2024	2,811	$	98.86	2,811	$	272



(1)			Primarily revenue from physician practices and revenue cycle management.


	Three Months Ended March 31,
	2025	2024
Expected volatility	36.6% - 48.0%	34.9% - 52.1%

Risk-free interest rate	4.1% - 4.3%	4.4% - 4.9%


	Three Months Ended March 31,
	2025		2024
Hospital Operations:
Net patient service revenues from hospitals and related outpatient facilities:
Medicare	$	548	$	610
Medicaid	380		411
Managed care	2,400		2,656
Uninsured	35		19
Indemnity and other	117		154
Total	3,480		3,850
Other revenues(1)	549		523
Total Hospital Operations	4,029		4,373
Ambulatory Care	1,194		995
Net operating revenues	$	5,223	$	5,368



(1)			Primarily revenue from management fees and other sources.


	March 31, 2025		December 31, 2024
Hospital Operations	$	826	$	800
Ambulatory Care	1,950		1,927
Redeemable noncontrolling interests	$	2,776	$	2,727


	Net Income Available to Common Shareholders (Numerator)		Weighted Average Shares (Denominator)	Per-Share Amount
Three Months Ended March 31, 2025
Net income available to Tenet Healthcare Corporation common shareholders for basic earnings per share	$	406	94,242	$	4.31
Effect of dilutive instruments	—		777	(0.04)
Net income available to Tenet Healthcare Corporation common shareholders for diluted earnings per share	$	406	95,019	$	4.27

Three Months Ended March 31, 2024
Net income available to Tenet Healthcare Corporation common shareholders for basic earnings per share	$	2,151	99,581	$	21.60
Effect of dilutive instruments	—		1,017	(0.22)
Net income available to Tenet Healthcare Corporation common shareholders for diluted earnings per share	$	2,151	100,598	$	21.38


	March 31, 2025		December 31, 2024
Assets:
Hospital Operations	$	16,884	$	16,722
Ambulatory Care	12,353		12,214
Total	$	29,237	$	28,936


	Three Months Ended March 31,				Increase (Decrease)
	2025		2024
Hospital Operations – hospitals and related outpatient facilities:
Number of hospitals (at end of period)	49		52		(3)		(1)
Total admissions	120,090		136,374		(11.9)	%
Adjusted admissions	213,039		243,185		(12.4)	%
Paying admissions (excludes charity and uninsured)	115,285		130,560		(11.7)	%
Charity and uninsured admissions	4,805		5,814		(17.4)	%
Admissions through emergency department	91,387		103,313		(11.5)	%
Emergency department visits, outpatient	474,619		540,205		(12.1)	%
Total emergency department visits	566,006		643,518		(12.0)	%
Total surgeries	66,255		81,973		(19.2)	%
Patient days — total	605,786		711,745		(14.9)	%
Adjusted patient days	1,036,716		1,221,755		(15.1)	%
Average length of stay (days)	5.04		5.22		(3.4)	%
Average licensed beds	12,435		15,319		(18.8)	%
Utilization of licensed beds	54.1	%	51.1	%	3.0	%	(1)
Total visits	1,405,921		1,512,191		(7.0)	%
Paying visits (excludes charity and uninsured)	1,310,928		1,414,570		(7.3)	%
Charity and uninsured visits	94,993		97,621		(2.7)	%
Ambulatory Care:
Total consolidated facilities (at end of period)	387		380		7		(1)
Total consolidated cases	454,288		399,427		13.7	%



(1)			The change is the difference between the 2025 and 2024 amounts presented.


	Three Months Ended March 31,				Increase (Decrease)
Revenues	2025		2024

Hospital Operations	$	4,029	$	4,373	(7.9)	%
Ambulatory Care	1,194		995		20.0	%
Total	$	5,223	$	5,368	(2.7)	%


	Three Months Ended March 31,				Increase (Decrease)(1)
	2025		2024
Medicare	15.7	%	15.8	%	(0.1)	%
Medicaid	10.9	%	10.7	%	0.2	%
Managed care(2)	69.0	%	69.0	%	—	%
Uninsured	1.0	%	0.5	%	0.5	%
Indemnity and other	3.4	%	4.0	%	(0.6)	%



(1)			The change is the difference between the 2025 and 2024 percentages presented.
(2)			Includes Medicare and Medicaid managed care programs.


	Three Months Ended March 31,				Increase (Decrease)(1)
Admissions from:	2025		2024
Medicare	19.5	%	19.8	%	(0.3)	%
Medicaid	3.7	%	4.5	%	(0.8)	%
Managed care(2)	69.2	%	68.0	%	1.2	%
Charity and uninsured	4.0	%	4.2	%	(0.2)	%
Indemnity and other	3.6	%	3.5	%	0.1	%


	Same-Hospital
	Three Months Ended March 31,				Increase (Decrease)
Admissions, Patient Days and Surgeries	2025		2024
Number of hospitals	47		47		—		(1)
Total admissions	118,998		114,032		4.4	%
Adjusted admissions	210,847		204,981		2.9	%
Paying admissions (excludes charity and uninsured)	114,246		109,021		4.8	%
Charity and uninsured admissions	4,752		5,011		(5.2)	%
Admissions through emergency department	90,554		86,188		5.1	%
Paying admissions as a percentage of total admissions	96.0	%	95.6	%	0.4	%	(1)
Charity and uninsured admissions as a percentage of total admissions	4.0	%	4.4	%	(0.4)	%	(1)
Emergency department admissions as a percentage of total admissions	76.1	%	75.6	%	0.5	%	(1)
Surgeries — inpatient	29,355		28,948		1.4	%
Surgeries — outpatient	36,547		37,920		(3.6)	%
Total surgeries	65,902		66,868		(1.4)	%
Patient days — total	600,820		588,995		2.0	%
Adjusted patient days	1,027,180		1,017,904		0.9	%
Average length of stay (days)	5.05		5.17		(2.3)	%
Licensed beds (at end of period)	12,307		12,344		(0.3)	%
Average licensed beds	12,307		12,344		(0.3)	%
Utilization of licensed beds	54.2	%	52.4	%	1.8	%	(1)


	Same-Hospital
Selected Operating Expenses as a Percentage of Net Operating Revenues	Three Months Ended March 31,				Increase (Decrease)(1)
	2025		2024

Salaries, wages and benefits	45.3	%	47.6	%	(2.3)	%
Supplies	14.6	%	14.7	%	(0.1)	%
Other operating expenses, net	22.4	%	22.5	%	(0.1)	%


	Three Months Ended March 31, 2025
Net revenues	6.8	%
Cases	(2.1)	%
Net revenue per case	9.1	%


	Maturity Date, Years Ending December 31,
	2025			2026			2027			2028			2029			Thereafter			Total			Fair Value
	(Dollars in Millions)
Fixed-rate long-term debt	$	69		$	70		$	3,103		$	3,136		$	1,423		$	5,458		$	13,259		$	12,972
Average effective interest rates	7.0		%	7.4		%	5.8		%	5.9		%	4.3		%	6.0		%	5.7		%



(1)			In July 2024, our board of directors authorized the repurchase of up to $1.500 billion of our common stock through a share repurchase program that has no expiration date. The share repurchase program does not obligate us to acquire any particular amount of common stock, and it may be suspended for periods or discontinued at any time.






















(31)	Rule 13a-14(a)/15d-14(a) Certifications

	(a)	Certification of Saumya Sutaria, M.D., Chief Executive Officer

	(b)	Certification of Sun Park, Executive Vice President and Chief Financial Officer

(32)	Section 1350 Certifications of Saumya Sutaria, M.D., Chief Executive Officer, and Sun Park, Executive Vice President and Chief Financial Officer

(101 SCH)	Inline XBRL Taxonomy Extension Schema Document

(101 CAL)	Inline XBRL Taxonomy Extension Calculation Linkbase Document

(101 DEF)	Inline XBRL Taxonomy Extension Definition Linkbase Document

(101 LAB)	Inline XBRL Taxonomy Extension Label Linkbase Document

(101 PRE)	Inline XBRL Taxonomy Extension Presentation Linkbase Document

(101 INS)	Inline XBRL Taxonomy Extension Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document

(104)	Cover page from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 formatted in Inline XBRL (included in Exhibit 101)


		TENET HEALTHCARE CORPORATION (Registrant)

Date: April 29, 2025	By:	/s/ R. SCOTT RAMSEY
		R. Scott Ramsey
		Senior Vice President, Controller
		(Principal Accounting Officer)



Date: April 29, 2025			/s/ SAUMYA SUTARIA
			Saumya Sutaria, M.D.
			Chief Executive Officer


Date: April 29, 2025			/s/ SUN PARK
			Sun Park
			Executive Vice President and Chief Financial Officer