Tenet Healthcare Corp 10-Q for FY2023 Q2

Tenet Healthcare Corp (THC)

10-Q 2023-07-31 For: 2023-06-30

Added on April 07, 2026

About this 10-Q

Tenet Healthcare Corp filed this 10-Q on July 31, 2023, covering the quarter ended June 30, 2023 (FY2023 Q2).

Headline figures

Quarter ended June 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $5.08B; up 9.6% from $4.64B a year earlier
Net income: $293M; up 63.7% from net income of $179M a year earlier
Diluted EPS: $1.15; up 228.6% from $0.35 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	27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	58

Item 4.	Controls and Procedures	58



PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	59

Item 1A.	Risk Factors	59

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59

Item 5.	Other Information	59

Item 6.	Exhibits	60


	June 30,		December 31,
	2023		2022
ASSETS
Current assets:
Cash and cash equivalents	$	934	$	858
Accounts receivable	2,914		2,943
Inventories of supplies, at cost	404		405

Assets held for sale	141		—
Other current assets	1,602		1,775
Total current assets	5,995		5,981
Investments and other assets	3,130		3,147
Deferred income taxes	8		19
Property and equipment, at cost, less accumulated depreciation and amortization ($6,344 at June 30, 2023 and $6,201 at December 31, 2022)	6,268		6,462
Goodwill	10,350		10,123
Other intangible assets, at cost, less accumulated amortization ($1,455 at June 30, 2023 and $1,428 at December 31, 2022)	1,406		1,424
Total assets	$	27,157	$	27,156
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	141	$	145
Accounts payable	1,246		1,504
Accrued compensation and benefits	718		778
Professional and general liability reserves	257		255
Accrued interest payable	199		213
Liabilities held for sale	17		—
Contract liabilities	76		110
Other current liabilities	1,498		1,471
Total current liabilities	4,152		4,476
Long-term debt, net of current portion	14,907		14,934
Professional and general liability reserves	793		790
Defined benefit plan obligations	329		331
Deferred income taxes	243		217
Other long-term liabilities	1,732		1,800
Total liabilities	22,156		22,548
Commitments and contingencies
Redeemable noncontrolling interests in equity of consolidated subsidiaries	2,277		2,149
Equity:
Shareholders’ equity:
Common stock, $0.05 par value; authorized 262,500,000 shares; 157,205,777 shares issued at June 30, 2023 and 156,462,456 shares issued at December 31, 2022	8		8
Additional paid-in capital	4,800		4,778
Accumulated other comprehensive loss	(178)		(181)
Accumulated deficit	(537)		(803)
Common stock in treasury, at cost, 55,696,591 shares at June 30, 2023 and 54,215,871 shares at December 31, 2022	(2,750)		(2,660)
Total shareholders’ equity	1,343		1,142
Noncontrolling interests	1,381		1,317
Total equity	2,724		2,459
Total liabilities and equity	$	27,157	$	27,156


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net operating revenues	$	5,082	$	4,638	$	10,103	$	9,383
Grant income	8		94		11		100
Equity in earnings of unconsolidated affiliates	54		54		104		100
Operating expenses:
Salaries, wages and benefits	2,285		2,126		4,543		4,308
Supplies	891		811		1,782		1,596
Other operating expenses, net	1,125		1,006		2,218		1,948
Depreciation and amortization	213		216		430		419
Impairment and restructuring charges, and acquisition-related costs	16		57		37		73
Litigation and investigation costs	10		18		14		38
Net gains on sales, consolidation and deconsolidation of facilities	—		(1)		(13)		—
Operating income	604		553		1,207		1,201
Interest expense	(226)		(222)		(447)		(449)
Other non-operating income, net	6		—		4		—
Loss from early extinguishment of debt	(11)		(66)		(11)		(109)
Income from continuing operations, before income taxes	373		265		753		643
Income tax expense	(80)		(86)		(164)		(185)
Income from continuing operations, before discontinued operations	293		179		589		458
Discontinued operations:
Income from operations	—		—		—		1

Income from discontinued operations	—		—		—		1
Net income	293		179		589		459
Less: Net income available to noncontrolling interests	170		141		323		281
Net income available to Tenet Healthcare Corporation common shareholders	$	123	$	38	$	266	$	178
Amounts available to Tenet Healthcare Corporation common shareholders
Income from continuing operations, net of tax	$	123	$	38	$	266	$	177
Income from discontinued operations, net of tax	—		—		—		1
Net income available to Tenet Healthcare Corporation common shareholders	$	123	$	38	$	266	$	178
Earnings per share available to Tenet Healthcare Corporation common shareholders:
Basic
Continuing operations	$	1.21	$	0.35	$	2.61	$	1.64
Discontinued operations	—		—		—		0.01
	$	1.21	$	0.35	$	2.61	$	1.65
Diluted
Continuing operations	$	1.15	$	0.35	$	2.47	$	1.63
Discontinued operations	—		—		—		0.01
	$	1.15	$	0.35	$	2.47	$	1.64
Weighted average shares and dilutive securities outstanding (in thousands):
Basic	101,766		107,790		102,028		107,636
Diluted	104,778		108,750		105,354		114,054


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income	$	293	$	179	$	589	$	459
Other comprehensive income:
Amortization of net actuarial loss included in other non-operating income, net	2		3		4		5
Unrealized loss on debt securities held as available-for-sale	—		(1)		—		(3)

Foreign currency translation adjustments and other	—		1		—		1
Other comprehensive income before income taxes	2		3		4		3
Income tax expense related to items of other comprehensive income	(1)		(1)		(1)		(1)
Total other comprehensive income, net of tax	1		2		3		2
Comprehensive net income	294		181		592		461
Less: Comprehensive income available to noncontrolling interests	170		141		323		281
Comprehensive income available to Tenet Healthcare Corporation common shareholders	$	124	$	40	$	269	$	180


	Six Months Ended June 30,
	2023		2022
Net income	$	589	$	459
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	430		419
Deferred income tax expense	37		132
Stock-based compensation expense	33		34
Impairment and restructuring charges, and acquisition-related costs	37		73
Litigation and investigation costs	14		38
Net gains on sales, consolidation and deconsolidation of facilities	(13)		—
Loss from early extinguishment of debt	11		109
Equity in earnings of unconsolidated affiliates, net of distributions received	7		18
Amortization of debt discount and debt issuance costs	18		15
Pre-tax income from discontinued operations	—		(1)
Net gains from the sale of investments and long-lived assets	(15)		(71)
Other items, net	(3)		12
Changes in cash from operating assets and liabilities:
Accounts receivable	7		(74)
Inventories and other current assets	160		173
Income taxes	(31)		(86)
Accounts payable, accrued expenses, contract liabilities and other current liabilities	(168)		(764)
Other long-term liabilities	12		(41)
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements	(78)		(98)

Net cash provided by operating activities	1,047		347
Cash flows from investing activities:
Purchases of property and equipment	(367)		(307)
Purchases of businesses or joint venture interests, net of cash acquired	(96)		(66)
Proceeds from sales of facilities and other assets	16		209
Proceeds from sales of marketable securities, long-term investments and other assets	26		9
Purchases of marketable securities and equity investments	(37)		(41)

Other items, net	(9)		(4)
Net cash used in investing activities	(467)		(200)
Cash flows from financing activities:


Repayments of borrowings	(1,437)		(2,744)
Proceeds from borrowings	1,362		2,013
Repurchases of common stock	(90)		—
Debt issuance costs	(15)		(24)
Distributions paid to noncontrolling interests	(270)		(310)
Proceeds from the sale of noncontrolling interests	30		9
Purchases of noncontrolling interests	(79)		(29)


Other items, net	(5)		(75)
Net cash used in financing activities	(504)		(1,160)
Net increase (decrease) in cash and cash equivalents	76		(1,013)
Cash and cash equivalents at beginning of period	858		2,364
Cash and cash equivalents at end of period	$	934	$	1,351
Supplemental disclosures:
Interest paid, net of capitalized interest	$	(445)	$	(416)
Income tax payments, net	$	(158)	$	(140)



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

At July 21, 2023, there were 101,535,140 shares of the Registrant’s common stock outstanding.


	Gross Carrying Amount		Accumulated Amortization		Net Book Value
At June 30, 2023:
Other intangible assets with finite useful lives:
Capitalized software costs	$	1,758	$	(1,222)	$	536
Contracts	295		(155)		140
Other	92		(78)		14
Total other intangible assets with finite lives	2,145		(1,455)		690

Other intangible assets with indefinite useful lives:
Trade names	105		—		105
Contracts	605		—		605
Other	6		—		6
Total other intangible assets with indefinite lives	716		—		716
Total other intangible assets	$	2,861	$	(1,455)	$	1,406

At December 31, 2022:
Other intangible assets with finite useful lives:
Capitalized software costs	$	1,751	$	(1,206)	$	545
Contracts	295		(146)		149
Other	92		(76)		16
Total other intangible assets with finite lives	2,138		(1,428)		710

Other intangible assets with indefinite useful lives:
Trade names	105		—		105
Contracts	603		—		603
Other	6		—		6
Total other intangible assets with indefinite lives	714		—		714
Total other intangible assets	$	2,852	$	(1,428)	$	1,424


			Six Months Ending		Years Ending								Later Years
					December 31,
	Total		2023		2024		2025		2026		2027
Amortization of intangible assets	$	690	$	87	$	126	$	104	$	90	$	74	$	209


	June 30, 2023		December 31, 2022
Prepaid expenses	$	399	$	400
Contract assets	186		200
California provider fee program receivables	321		367
Receivables from other government programs	103		187
Guarantees	191		143
Non-patient receivables	315		390
Other	87		88
Total other current assets	$	1,602	$	1,775


	June 30, 2023		December 31, 2022

Patient accounts receivable	$	2,683	$	2,746
Estimated future recoveries	154		149
Cost report settlements receivable, net of payables and valuation allowances	77		48
Accounts receivable, net	$	2,914	$	2,943


	June 30, 2023		December 31, 2022
Assets:
Other current assets	$	321	$	367
Investments and other assets	$	227	$	197

Liabilities:
Other current liabilities	$	146	$	145
Other long-term liabilities	$	77	$	63


	Contract Assets		Contract Liabilities – Current Advances from Medicare
December 31, 2022	$	185	$	—
June 30, 2023	172		—
Decrease	$	(13)	$	—

December 31, 2021	$	181	$	876
June 30, 2022	172		403
Decrease	$	(9)	$	(473)


	Receivables		Contract Assets – Unbilled Revenue		Contract Liabilities – Current Deferred Revenue		Contract Liabilities – Long-Term Deferred Revenue
December 31, 2022	$	37	$	15	$	110	$	13
June 30, 2023	18		14		76		12
Decrease	$	(19)	$	(1)	$	(34)	$	(1)

December 31, 2021	$	28	$	18	$	79	$	15
June 30, 2022	24		15		69		14
Decrease	$	(4)	$	(3)	$	(10)	$	(1)


	June 30, 2023		December 31, 2022
Senior unsecured notes:
6.125% due 2028	$	2,500	$	2,500
6.875% due 2031	362		362
Senior secured first lien notes:
4.625% due July 2024	—		756
4.625% due September 2024	—		589
4.875% due 2026	2,100		2,100
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		—
Senior secured second lien notes:
6.250% due 2027	1,500		1,500

Finance leases, mortgages and other notes	417		453
Unamortized issue costs and note discounts	(131)		(131)
Total long-term debt	15,048		15,079
Less: Current portion	141		145
Long-term debt, net of current portion	$	14,907	$	14,934


	Number of Options	Weighted Average Exercise Price Per Share		Aggregate Intrinsic Value		Weighted Average Remaining Life
				(In Millions)





Outstanding at December 31, 2022	460,947	$	23.33

Exercised	(76,507)	$	26.07

Outstanding at June 30, 2023	384,440	$	22.79	$	23	4.6 years


	Number of RSUs	Weighted Average Grant Date Fair Value Per RSU
Unvested at December 31, 2022	1,520,418	$	66.36
Granted	732,516	$	61.87
Performance-based adjustment	185,901	$	48.97
Vested	(900,166)	$	37.02
Forfeited	(61,774)	$	62.58
Unvested at June 30, 2023	1,476,895	$	67.99


	Six Months Ended June 30,
	2023	2022
Expected volatility	53.6% - 65.6%	39.6% - 68.1%

Risk-free interest rate	4.2% - 4.8%	1.0% - 1.7%


	Number of RSUs	Weighted Average Grant Date Fair Value Per RSU
Unvested at December 31, 2022	922,840	$	34.13

Vested	(303,171)	$	34.13
Forfeited	(9,722)	$	34.13
Unvested at June 30, 2023	609,947	$	34.13


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)
January 1 through January 31, 2023	—	$	—	—	$	750
February 1 through February 28, 2023	—	$	—	—	$	750
March 1 through March 31, 2023	906	$	55.03	906	$	700
April 1 through April 30, 2023	—	$	—	—	$	700
May 1 through May 31, 2023	580	$	69.17	580	$	660
June 1 through June 30, 2023	—	$	—	—	$	660
January 1 through June 30, 2023	1,486	$	60.55	1,486


	Options Outstanding and Exercisable
Range of Exercise Prices	Number of Options	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price Per Share
$18.99 to $20.609	255,845	4.1 years	$	19.62
$20.61 to $35.430	128,595	5.6 years	$	29.07
	384,440	4.6 years	$	22.79


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Treasury Stock		Noncontrolling Interests		Total Equity
	Shares Outstanding	Issued Par Amount
Balances at December 31, 2022	102,247	$	8	$	4,778	$	(181)	$	(803)	$	(2,660)	$	1,317	$	2,459
Net income	—	—		—		—		143		—		74		217
Distributions paid to noncontrolling interests	—	—		—		—		—		—		(61)		(61)
Other comprehensive income	—	—		—		2		—		—		—		2

Purchases of businesses and noncontrolling interests, net	—	—		2		—		—		—		17		19

Repurchases of common stock	(906)	—		—		—		—		(50)		—		(50)
Stock-based compensation expense and issuance of common stock	571	—		(6)		—		—		—		—		(6)
Balances at March 31, 2023	101,912	$	8	$	4,774	$	(179)	$	(660)	$	(2,710)	$	1,347	$	2,580
Net income	—	—		—		—		123		—		82		205
Distributions paid to noncontrolling interests	—	—		—		—		—		—		(66)		(66)
Other comprehensive income	—	—		—		1		—		—		—		1

Purchases of businesses and noncontrolling interests, net	—	—		4		—		—		—		18		22
Repurchases of common stock	(580)	—		—		—		—		(40)		—		(40)

Stock-based compensation expense and issuance of common stock	177	—		22		—		—		—		—		22
Balances at June 30, 2023	101,509	$	8	$	4,800	$	(178)	$	(537)	$	(2,750)	$	1,381	$	2,724



(1)			Includes Medicare and Medicaid managed care programs.
(2)			Primarily physician practices revenues.


	Balances at Beginning of Period		Litigation and Investigation Costs		Cash Payments		Other		Balances at End of Period
Six Months Ended June 30, 2023	$	51	$	14	$	(46)	$	—	$	19
Six Months Ended June 30, 2022	$	78	$	38	$	(58)	$	3	$	61


	June 30, 2023		December 31, 2022
Hospital Operations	$	229	$	233
Ambulatory Care	1,445		1,357
Conifer	603		559
Redeemable noncontrolling interests	$	2,277	$	2,149


	Net Income Available to Common Shareholders (Numerator)		Weighted Average Shares (Denominator)	Per-Share Amount
Three Months Ended June 30, 2023
Net income available to Tenet Healthcare Corporation common shareholders for basic earnings per share	$	123	101,766	$	1.21
Effect of dilutive stock options, restricted stock units, deferred compensation units, convertible instruments and dividends on preferred stock	(3)		3,012	(0.06)
Net income available to Tenet Healthcare Corporation common shareholders for diluted earnings per share	$	120	104,778	$	1.15

Three Months Ended June 30, 2022
Net income available to Tenet Healthcare Corporation common shareholders for basic earnings per share	$	38	107,790	$	0.35
Effect of dilutive stock options, restricted stock units, deferred compensation units, convertible instruments and dividends on preferred stock	—		960	—
Net income available to Tenet Healthcare Corporation common shareholders for diluted earnings per share	$	38	108,750	$	0.35

Six Months Ended June 30, 2023
Net income available to Tenet Healthcare Corporation common shareholders for basic earnings per share	$	266	102,028	$	2.61
Effect of dilutive stock options, restricted stock units, deferred compensation units, convertible instruments and dividends on preferred stock	(6)		3,326	(0.14)
Net income available to Tenet Healthcare Corporation common shareholders for diluted earnings per share	$	260	105,354	$	2.47

Six Months Ended June 30, 2022
Net income available to Tenet Healthcare Corporation common shareholders for basic earnings per share	$	177	107,636	$	1.64
Effect of dilutive stock options, restricted stock units, deferred compensation units, convertible instruments and dividends on preferred stock	9		6,418	(0.01)
Net income available to Tenet Healthcare Corporation common shareholders for diluted earnings per share	$	186	114,054	$	1.63


	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
At June 30, 2023
Long-lived assets held for sale	$	141	$	—	$	141	$	—




At December 31, 2022
Long-lived assets held and used	$	167	$	—	$	167	$	—


	Three Months Ended June 30,				Increase (Decrease)
	2023		2022
Hospital Operations – hospitals and related outpatient facilities:
Number of hospitals (at end of period)	61		60		1		(1)
Total admissions	132,754		128,068		3.7	%
Adjusted admissions	248,589		239,031		4.0	%
Paying admissions (excludes charity and uninsured)	126,861		121,722		4.2	%
Charity and uninsured admissions	5,893		6,346		(7.1)	%
Admissions through emergency department	99,572		96,137		3.6	%
Emergency department visits, outpatient	545,990		541,096		0.9	%
Total emergency department visits	645,562		637,233		1.3	%
Total surgeries	87,846		87,387		0.5	%
Patient days — total	677,430		658,995		2.8	%
Adjusted patient days	1,215,610		1,192,999		1.9	%
Average length of stay (days)	5.10		5.15		(1.0)	%
Average licensed beds	15,472		15,382		0.6	%
Utilization of licensed beds	48.1	%	47.1	%	1.0	%	(1)
Total visits	1,401,442		1,413,222		(0.8)	%
Paying visits (excludes charity and uninsured)	1,328,839		1,331,959		(0.2)	%
Charity and uninsured visits	72,603		81,263		(10.7)	%
Ambulatory Care:
Total consolidated facilities (at end of period)	320		269		51		(1)
Total consolidated cases	346,402		317,437		9.1	%



(1)			The change is the difference between the 2023 and 2022 amounts presented.


	Three Months Ended June 30,				Increase (Decrease)
Revenues	2023		2022

Hospital Operations prior to inter-segment eliminations	$	3,922	$	3,645	7.6	%
Ambulatory Care	942		771		22.2	%
Conifer	323		333		(3.0)	%
Inter-segment eliminations	(105)		(111)		(5.4)	%
Total	$	5,082	$	4,638	9.6	%


	Three Months Ended June 30,				Increase (Decrease)(1)		Six Months Ended June 30,				Increase (Decrease)(1)
	2023		2022				2023		2022
Medicare	16.6	%	17.3	%	(0.7)	%	16.9	%	17.5	%	(0.6)	%
Medicaid	7.3	%	8.0	%	(0.7)	%	7.6	%	7.5	%	0.1	%
Managed care(2)	71.0	%	68.8	%	2.2	%	70.6	%	69.2	%	1.4	%
Uninsured	0.8	%	1.1	%	(0.3)	%	0.8	%	1.1	%	(0.3)	%
Indemnity and other	4.3	%	4.8	%	(0.5)	%	4.1	%	4.7	%	(0.6)	%


	Same-Hospital							Same-Hospital
	Three Months Ended June 30,				Increase (Decrease)			Six Months Ended June 30,				Increase (Decrease)
Admissions, Patient Days and Surgeries	2023		2022					2023		2022
Number of hospitals (at end of period)	60		60		—		(1)	60		60		—		(1)
Total admissions	131,955		128,068		3.0	%		265,168		255,850		3.6	%
Adjusted admissions	246,689		239,031		3.2	%		489,932		466,964		4.9	%
Paying admissions (excludes charity and uninsured)	126,118		121,823		3.5	%		253,525		243,620		4.1	%
Charity and uninsured admissions	5,837		6,245		(6.5)	%		11,643		12,230		(4.8)	%
Admissions through emergency department	98,820		96,136		2.8	%		199,548		193,820		3.0	%
Paying admissions as a percentage of total admissions	95.6	%	95.1	%	0.5	%	(1)	95.6	%	95.2	%	0.4	%	(1)
Charity and uninsured admissions as a percentage of total admissions	4.4	%	4.9	%	(0.5)	%	(1)	4.4	%	4.8	%	(0.4)	%	(1)
Emergency department admissions as a percentage of total admissions	74.9	%	75.1	%	(0.2)	%	(1)	75.3	%	75.8	%	(0.5)	%	(1)
Surgeries — inpatient	34,371		33,749		1.8	%		68,219		66,657		2.3	%
Surgeries — outpatient	52,923		53,638		(1.3)	%		105,176		104,896		0.3	%
Total surgeries	87,294		87,387		(0.1)	%		173,395		171,553		1.1	%
Patient days — total	674,612		658,995		2.4	%		1,375,585		1,364,618		0.8	%
Adjusted patient days	1,208,906		1,192,999		1.3	%		2,438,954		2,417,823		0.9	%
Average length of stay (days)	5.11		5.15		(0.8)	%		5.19		5.33		(2.6)	%
Licensed beds (at end of period)	15,372		15,391		(0.1)	%		15,372		15,391		(0.1)	%
Average licensed beds	15,372		15,382		(0.1)	%		15,372		15,389		(0.1)	%
Utilization of licensed beds	48.2	%	47.1	%	1.1	%	(1)	49.4	%	49.0	%	0.4	%	(1)


	Same-Hospital						Same-Hospital
Selected Operating Expenses as a Percentage of Net Operating Revenues	Three Months Ended June 30,				Increase (Decrease)(1)		Six Months Ended June 30,				Increase (Decrease)(1)
	2023		2022				2023		2022
Salaries, wages and benefits	49.1	%	49.7	%	(0.6)	%	49.0	%	49.6	%	(0.6)	%
Supplies	16.7	%	17.1	%	(0.4)	%	16.7	%	16.5	%	0.2	%
Other operating expenses	24.3	%	23.7	%	0.6	%	24.1	%	22.3	%	1.8	%



	Medicare		Medicaid		Managed Care		Indemnity, Self-Pay and Other		Total
At June 30, 2023
0-60 days	90	%	43	%	56	%	22	%	51	%
61-120 days	4	%	27	%	17	%	14	%	16	%
121-180 days	3	%	14	%	11	%	8	%	10	%
Over 180 days	3	%	16	%	16	%	56	%	23	%
Total	100	%	100	%	100	%	100	%	100	%

At December 31, 2022
0-60 days	90	%	34	%	56	%	22	%	50	%
61-120 days	5	%	28	%	16	%	15	%	15	%
121-180 days	2	%	16	%	9	%	7	%	9	%
Over 180 days	3	%	22	%	19	%	56	%	26	%
Total	100	%	100	%	100	%	100	%	100	%


	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Net revenues	9.8	%	9.6	%
Cases	6.6	%	7.2	%
Net revenue per case	2.9	%	2.2	%


									June 30, 2023
Owned with a health system partner									208
Owned without a health system partner									271
Total									479


									Six Months Ended June 30, 2023
Acquisitions									11
De novo									6
Dispositions/Mergers									(4)
Total increase in number of facilities operated									13


	Maturity Date, Years Ending December 31,
	2023			2024			2025			2026			2027			Thereafter			Total			Fair Value

	(Dollars in Millions)
Fixed rate long-term debt	$	81		$	123		$	89		$	2,143		$	3,022		$	9,721		$	15,179		$	14,566
Average effective interest rates	6.2		%	6.2		%	7.1		%	4.9		%	5.7		%	5.6		%	5.6		%



(1)			In October 2022, our board of directors authorized the repurchase of up to $1 billion of our common stock through a share repurchase program that expires on December 31, 2024. 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 before its scheduled expiration.


(4)	Instruments Defining the Rights of Security Holders, Including Indentures

	(a)	Fortieth Supplemental Indenture, dated as of May 16, 2023, among the Registrant, the guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to 6.750% Senior Secured First Lien Notes Due 2031 (Incorporated by reference to Exhibit 4.2 to Registrant’s Current Report on Form 8-K filed May 16, 2023)

(10)	Material Contracts

	(a)	Letter from the Registrant to Sun Park, dated as of June 3, 2023*











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

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

	(b)	Certification of Daniel J. Cancelmi, Executive Vice President and Chief Financial Officer

(32)	Section 1350 Certifications of Saumya Sutaria, M.D., Chief Executive Officer, and Daniel J. Cancelmi, 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 June 30, 2023 formatted in Inline XBRL (included in Exhibit 101)

* Management contract or compensatory plan or arrangement