• Tenet reported net income from continuing operations attributable to Tenet common shareholders of $15 million or $0.14 per diluted share in the second quarter of 2019 compared to $24 million or $0.23 per diluted share in the second quarter of 2018.
• Adjusted diluted earnings per share from continuing operations were $0.56 in the second quarter of 2019, above the midpoint of the Company’s Outlook and compared to $0.49 in the second quarter of 2018.
• Adjusted EBITDA for the second quarter of 2019 was $657 million, which was above the midpoint of the Company’s Outlook. Adjusted EBITDA consisted of $347 million in the Hospital Operations and other segment, $207 million in the Ambulatory Care segment and $103 million in the Conifer segment.
• Hospital segment same-hospital net patient service revenues grew 5.7 percent in the second quarter of 2019: admissions increased 3.3 percent, adjusted admissions increased 2.2 percent and net revenue per adjusted admission increased 3.4 percent.
• Ambulatory Care segment same-facility system-wide surgical revenue grew 5.2 percent in the second quarter of 2019, with surgical cases up 2.6 percent and surgical revenue per case up 2.5 percent. Adjusted EBITDA less facility-level noncontrolling interest increased 9.1 percent.
• Conifer’s Adjusted EBITDA grew 13.2 percent and margins increased 540 basis points to 29.0 percent reflecting ongoing improvements in its cost structure. Conifer’s revenues decreased 8.0 percent in the second quarter of 2019 primarily as a result of divestitures by Tenet and other customers.
• Updating 2019 Outlook for net income and earnings per share; reiterating previously provided 2019 Outlook for revenue, Adjusted EBITDA, Adjusted EPS and Adjusted Free Cash Flow.

DALLAS--(BUSINESS WIRE)-- Tenet Healthcare Corporation (NYSE: THC) reported net income from continuing operations attributable to Tenet common shareholders of $15 million in the second quarter of 2019 compared to net income of $24 million in the second quarter of 2018. Adjusted EBITDA was $657 million in the second quarter of 2019 above the midpoint of the Company’s Outlook range of $625 million to $675 million.

Ronald A. Rittenmeyer, Executive Chairman and CEO, said, “We delivered another strong quarter which included a very meaningful improvement in volume growth in our hospital portfolio, continued volume and earnings growth at USPI and strong financial results at Conifer. We are continuing to take appropriate actions to improve our cost structure and our focus on improving volume growth is showing results.”

Results for the Quarter Ended June 30, 2019

Tenet reported net income from continuing operations attributable to Tenet common shareholders of $15 million, or $0.14 per diluted share, in the second quarter of 2019 compared to net income of $24 million, or $0.23 per diluted share, in the second quarter of 2018.

After adjusting for the items listed on Table #2, Tenet produced Adjusted net income from continuing operations available to Tenet common shareholders of $59 million, or $0.56 per diluted share, in the second quarter of 2019, compared to $51 million, or $0.49 per diluted share, in the second quarter of 2018.

Adjusted EBITDA was $657 million in the second quarter of 2019 compared to $634 million in the second quarter of 2018, an increase of 3.6 percent. Results in the second quarter of 2019 included $13 million of additional expense in the Hospital Operations and other segment due to a decline in the treasury rate utilized to discount our actuarial liabilities compared to a $4 million benefit in the second quarter of 2018.

Reconciliations of GAAP net income available (loss attributable) to Tenet common shareholders to Adjusted net income available (loss attributable) from continuing operations, Adjusted diluted earnings (loss) per share from continuing operations and Adjusted EBITDA are contained in Tables #1 and #2 at the end of this release.

Hospital Operations and Other Segment

Net operating revenues in the Hospital Operations and other segment were $3.827 billion in the second quarter of 2019, up 2.5 percent from the second quarter of 2018. The increase in revenue was primarily due to revenue growth on a same-hospital basis, partially offset by hospital divestitures.

On a same-hospital basis, net patient service revenues were $3.547 billion in the second quarter of 2019, up 5.7 percent from the second quarter of 2018. Admissions increased 3.3 percent on a same-hospital basis, adjusted admissions increased 2.2 percent and revenue per adjusted admission increased 3.4 percent.

Adjusted EBITDA in Tenet’s hospital segment was $347 million in the second quarter of 2019 compared to $345 million in the second quarter of 2018.

Selected operating expenses in the Hospital Operations and other segment increased 3.5 percent on a per adjusted admission basis in the second quarter of 2019. Selected operating expenses include salaries, wages and benefits, supplies and other operating expenses and exclude the costs of the Company’s health plan businesses. Salaries, wages and benefits increased 3.4 percent per adjusted admission in the second quarter of 2019, supply expense increased 1.2 percent and other operating expenses increased 5.3 percent.

Ambulatory Care Segment

The Ambulatory Care segment produced net operating revenues of $524 million in the second quarter of 2019, a decrease of 1.3 percent compared to $531 million in the second quarter of 2018. The decline in revenue was due to the divestiture of Aspen Healthcare, the Company’s former business in the U.K. that was sold in the third quarter of 2018. Aspen generated $47 million of revenue and $7 million of Adjusted EBITDA and Adjusted EBITDA less facility-level noncontrolling interest in the second quarter of 2018. After normalizing for the divestiture of Aspen, the Ambulatory Care segment generated Adjusted EBITDA of $207 million in the second quarter of 2019, up 8.4 percent from $191 million in the second quarter of 2018 and Adjusted EBITDA less facility-level noncontrolling interest was $132 million, up 9.1 percent from $121 million in the second quarter of 2018.

The results of many of the facilities in which the Ambulatory Care segment has an investment are not consolidated by Tenet (of the 344 facilities at June 30, 2019, the results of 112 were accounted for under the equity method for unconsolidated affiliates). To help analyze the segment’s results of operations, management uses system-wide measures, which include revenues and cases of both consolidated and unconsolidated facilities. On a same-facility system-wide basis, revenue in the Ambulatory Care segment increased 5.3 percent in the second quarter of 2019, with cases increasing 3.2 percent and revenue per case increasing 2.0 percent. In the surgical business, which represents the majority of the revenue in the Ambulatory segment, same-facility system-wide revenue grew 5.2 percent in the second quarter of 2019, with cases up 2.6 percent and revenue per case up 2.5 percent.

Conifer Segment

Conifer generated $103 million of Adjusted EBITDA in the second quarter of 2019, up 13.2 percent from $91 million in the second quarter of 2018. Adjusted EBITDA margins increased 540 basis points to 29.0 percent, reflecting ongoing improvements in Conifer’s cost structure as well as $13 million of annual service performance incentive revenues from customers that were recognized in the second quarter of 2019.

During the second quarter of 2019, Conifer’s revenue declined 8.0 percent to $355 million, from $386 million in the second quarter of 2018, primarily due to client attrition following divestitures by Tenet and other customers. Revenue from third-party customers declined 13.6 percent to $209 million in the second quarter of 2019.

Results for the Six Months Ended June 30, 2019

Tenet reported a net loss from continuing operations attributable to Tenet common shareholders of $12 million, or $0.12 per diluted share, in the first half of 2019 compared to net income of $122 million, or $1.18 per diluted share, in the first half of 2018. The 2019 period included a $47 million pre-tax loss from the extinguishment of debt or $0.45 per diluted share. The 2018 period included a $118 million pre-tax gain, or $1.15 per diluted share, from the sales, consolidation and deconsolidation of facilities.

After adjusting for the items listed on Table #2, Tenet produced Adjusted net income from continuing operations available to Tenet common shareholders of $115 million, or $1.10 per diluted share, in the first half of 2019, compared to $110 million, or $1.06 per diluted share, in the first half of 2018.

Adjusted EBITDA was $1.270 billion in the first half of 2019 compared to $1.299 billion in the first half of 2018, a decline of $29 million or 2.2 percent. The decline was primarily attributable to: (i) a $37 million year-over-year increase in expense due to a decline in the treasury rate used to discount the Company’s actuarial liabilities; (ii) $15 million of lower earnings related to a risk-based contracting business in California; and, (iii) the divestiture of Aspen Healthcare, which generated $14 million of Adjusted EBITDA in the first half of 2018.

Hospital Operations and Other Segment

Net operating revenues in the Hospital Operations and other segment were $7.689 billion in the first half of 2019, essentially flat with the first half of 2018.

On a same-hospital basis, net patient service revenues were $7.104 billion in the first half of 2019, up 3.7 percent from the first half of 2018. Admissions increased 1.6 percent on a same-hospital basis in the first half of 2019, adjusted admissions increased 1.4 percent and revenue per adjusted admission increased 2.3 percent.

Adjusted EBITDA in Tenet’s hospital segment was $684 million in the first half of 2019 compared to $747 million in the first half of 2018. The $63 million decline was primarily due to: (i) a $37 million year-over-year increase in expense due to a decline in the treasury rate used to discount the Company’s actuarial liabilities; and, (ii) $15 million of lower earnings related to a risk-based contracting business in California.

Selected operating expenses in the Hospital Operations and other segment increased 3.7 percent on a per adjusted admission basis in the first half of 2019. Selected operating expenses include salaries, wages and benefits, supplies and other operating expenses and exclude the costs of the Company’s health plan businesses. Salaries, wages and benefits increased 3.1 percent per adjusted admission in the first half of 2019, supply expense increased 0.6 percent and other operating expenses increased 7.3 percent.

Ambulatory Care Segment

The Ambulatory Care segment produced net operating revenues of $1.004 billion in the first half of 2019, a decrease of 2.4 percent compared to $1.029 billion in the first half of 2018. The decline in revenue was due to the divestiture of Aspen Healthcare, the Company’s former business in the U.K. that was sold in the third quarter of 2018. Aspen generated $96 million of revenue and $14 million of Adjusted EBITDA and Adjusted EBITDA less facility-level noncontrolling interest in the first half of 2018. After normalizing for the divestiture of Aspen, the Ambulatory Care segment generated Adjusted EBITDA of $384 million in the first half of 2019, up 10.0 percent from $349 million in the first half of 2018 and Adjusted EBITDA less facility-level noncontrolling interest was $244 million, up 9.4 percent from $223 million in the first half of 2018.

On a same-facility system-wide basis, revenue in the Ambulatory Care segment increased 4.8 percent in the first half of 2019, with cases increasing 2.1 percent and revenue per case increasing 2.7 percent. In the surgical business, which represents the majority of the revenue in the Ambulatory segment, same-facility system-wide revenue grew 4.7 percent in the first half of 2019, with cases up 2.7 percent and revenue per case up 2.0 percent.

Conifer Segment

Conifer generated $202 million of Adjusted EBITDA in the first half of 2019, up 6.9 percent from $189 million in the first half of 2018. Adjusted EBITDA margins increased 480 basis points to 28.7 percent, reflecting ongoing improvements in Conifer’s cost structure.

During the first half of 2019, Conifer’s revenue declined 10.9 percent to $704 million, from $790 million in the first half of 2018 primarily due to client attrition following divestitures by Tenet and other customers. Revenue from third-party customers declined 16.9 percent to $412 million in the first half of 2019.

Cash Flow and Liquidity

Cash and cash equivalents were $249 million at June 30, 2019 compared to $252 million at March 31, 2019. The Company had $190 million of outstanding borrowings on its $1 billion credit line as of June 30, 2019. Accounts receivable days outstanding from continuing operations were 58.4 at June 30, 2019 compared to 58.6 at March 31, 2019.

Net cash provided by operating activities was $294 million in the first half of 2019, representing a $167 million decrease compared to $461 million in the first half of 2018. After subtracting $336 million and $268 million of capital expenditures in the first half of 2019 and 2018, respectively, Free Cash Flow was an outflow of $42 million in the first half of 2019, a decrease of $235 million compared to Free Cash Flow of $193 million in the first half of 2018. Adjusted Free Cash Flow was $43 million in the first half of 2019, representing a $216 million decrease from $259 million of Adjusted Free Cash Flow in the first half of 2018.

Net cash used in investing activities was $303 million in the first half of 2019 compared to $225 million of net cash provided by investing activities in the first half of 2018. Results in the first half of 2019 included $66 million of proceeds from the sales of facilities, long-term investments and other assets compared to $624 million in the first half of 2018.

Net cash used in financing activities was $153 million in the first half of 2019 compared to $894 million used in the first half of 2018 when the Company invested $630 million in cash to increase its ownership in USPI from 80% to 95%.

Reconciliations of net cash provided by operating activities to both Free Cash Flow and Adjusted Free Cash Flow are contained in Table #3 at the end of this release.

Outlook

The Company’s Outlook for 2019 includes:

• Revenue of $18.0 billion to $18.4 billion,
• Net income from continuing operations available to Tenet common shareholders of $16 million to $116 million,
• Adjusted EBITDA of $2.650 billion to $2.750 billion,
• Net cash provided by operating activities of $1.070 billion to $1.375 billion,
• Adjusted Free Cash Flow of $600 million to $800 million,
• Diluted earnings per share from continuing operations of $0.15 to $1.09, and
• Adjusted diluted earnings per share from continuing operations of $2.08 to $2.59.

The Outlook for 2019 assumes California Provider Fee revenues of approximately $260 million, equity in earnings of unconsolidated affiliates of $180 million to $190 million, depreciation and amortization expense of $820 million to $840 million, interest expense of $985 million to $995 million, net income available to noncontrolling interests of $410 million to $430 million and an average diluted share count of 106 million.

The Company’s Outlook for the third quarter of 2019 includes:

• Revenue of $4.300 billion to $4.600 billion,
• Net income available (loss attributable) from continuing operations to Tenet common shareholders ranging from a loss of $(16) million to income of $21 million,
• Adjusted EBITDA of $600 million to $650 million,
• Diluted earnings (loss) per share from continuing operations ranging from a loss of $(0.15) per share to earnings of $0.20 per share, and
• Adjusted diluted earnings per share from continuing operations ranging from $0.23 to $0.48.

The Outlook for the third quarter assumes California Provider Fee revenues of approximately $65 million, equity in earnings of unconsolidated affiliates of $40 million to $45 million, depreciation and amortization expense of $200 million to $210 million, interest expense of $240 million to $250 million, net income available to noncontrolling interests of $95 million to $105 million, and an average diluted share count of 106 million.

Additional details on Tenet’s Outlook for both the third quarter and calendar year 2019 are available in Tables #4, #5 and #6 at the end of this press release and in an accompanying slide presentation that will be accessible through the Company’s website at www.tenethealth.com/investors.

Management’s Webcast Discussion of Second Quarter Results

Tenet management will discuss the Company’s second quarter 2019 results on a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on August 6, 2019. Investors can access the webcast through the Company’s website at www.tenethealth.com/investors. A set of slides, which will be referred to on the conference call, will be available on the Company’s website.

Additional information regarding Tenet’s quarterly results of operations is contained in its Form 10-Q report for the period ended June 30, 2019, which will be filed with the Securities and Exchange Commission and posted on the Company’s website.

This press release includes certain non-GAAP measures, such as Adjusted EBITDA, Adjusted net income available (loss attributable) from continuing operations to Tenet common shareholders, Adjusted diluted earnings (loss) per share from continuing operations, Free Cash Flow and Adjusted Free Cash Flow. Reconciliations of these measures to the most comparable GAAP measures are contained in the tables at the end of this release.

Tenet Healthcare Corporation (NYSE: THC) is a national diversified healthcare services company headquartered in Dallas with 110,000 employees. Through an expansive care network that includes United Surgical Partners International, we operate 65 hospitals and approximately 500 other healthcare facilities, including surgical hospitals, ambulatory surgery centers, urgent care and imaging centers and other outpatient facilities. We also operate Conifer Health Solutions, which provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other customers. At the center of everything we do is a commitment to deliver the right care, in the right place, at the right time, and to continually improve and advance the healthcare delivery system in the markets we serve. For more information, please visit www.tenethealth.com.

This release contains “forward-looking statements” - that is, statements that relate 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,” “assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “target,” 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, but are not limited to, the factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2018, and subsequent Form 10-Q filings and other filings with the Securities and Exchange Commission.

TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in millions except per share amounts)		Three Months Ended June 30,
		2019				%			2018				%			Change
Net operating revenues		$	4,560			100.0	%		$	4,506			100.0	%		1.2	%
Equity in earnings of unconsolidated affiliates		42				0.9	%		39				0.9	%		7.7	%
Operating expenses:
Salaries, wages and benefits		2,148				47.1	%		2,135				47.4	%		0.6	%
Supplies		753				16.5	%		748				16.6	%		0.7	%
Other operating expenses, net		1,044				22.9	%		1,027				22.8	%		1.7	%
Electronic health record incentives		—				—	%		—				—	%		—	%
Depreciation and amortization		214				4.7	%		194				4.3	%
Impairment and restructuring charges, and acquisition-related costs		36				0.8	%		30				0.7	%
Litigation and investigation costs		18				0.4	%		13				0.3	%
Net losses (gains) on sales, consolidation and deconsolidation of facilities		1				—	%		(8		)		(0.2	)%
Operating income		388				8.5	%		406				9.0	%
Interest expense		(247		)					(254		)
Other non-operating expense, net		(1		)					(1		)
Loss from early extinguishment of debt		—							(1		)
Income from continuing operations, before income taxes		140							150
Income tax expense		(30		)					(44		)
Income from continuing operations, before discontinued operations		110							106
Discontinued operations:
Income from operations		2							2
Income tax expense		—							—
Income from discontinued operations		2							2
Net income		112							108
Less: Net income available to noncontrolling interests		95							82
Net income available to Tenet Healthcare Corporation common shareholders		$	17						$	26
Amounts available to Tenet Healthcare Corporation common shareholders
Income from continuing operations, net of tax		$	15						$	24
Income from discontinued operations, net of tax		2							2
Net income available to Tenet Healthcare Corporation common shareholders		$	17						$	26
Earnings per share available to Tenet Healthcare Corporation common shareholders:
Basic
Continuing operations		$	0.15						$	0.23
Discontinued operations		0.02							0.02
		$	0.17						$	0.25
Diluted
Continuing operations		$	0.14						$	0.23
Discontinued operations		0.02							0.02
		$	0.16						$	0.25
Weighted average shares and dilutive securities outstanding (in thousands):
Basic		103,198							102,147
Diluted*		104,629							104,177

TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in millions except per share amounts)		Six Months Ended June 30,
		2019				%			2018				%			Change
Net operating revenues		$	9,105			100.0	%		$	9,205			100.0	%		(1.1	)%
Equity in earnings of unconsolidated affiliates		76				0.8	%		64				0.7	%		18.8	%
Operating expenses:
Salaries, wages and benefits		4,301				47.3	%		4,362				47.5	%		(1.4	)%
Supplies		1,494				16.4	%		1,522				16.5	%		(1.8	)%
Other operating expenses, net		2,118				23.3	%		2,087				22.7	%		1.5	%
Electronic health record incentives		(1		)		—	%		(1		)		—	%		—	%
Depreciation and amortization		422				4.6	%		398				4.3	%
Impairment and restructuring charges, and acquisition-related costs		55				0.6	%		77				0.8	%
Litigation and investigation costs		31				0.3	%		19				0.2	%
Net losses (gains) on sales, consolidation and deconsolidation of facilities		2				—	%		(118		)		(1.3	)%
Operating income		759				8.3	%		923				10.0	%
Interest expense		(498		)					(509		)
Other non-operating expense, net		—							(2		)
Loss from early extinguishment of debt		(47		)					(2		)
Income from continuing operations, before income taxes		214							410
Income tax expense		(47		)					(114		)
Income from continuing operations, before discontinued operations		167							296
Discontinued operations:
Income from operations		12							3
Income tax expense		(2		)					—
Income from discontinued operations		10							3
Net income		177							299
Less: Net income available to noncontrolling interests		179							174
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	(2	)					$	125
Amounts available (attributable) to Tenet Healthcare Corporation common shareholders
Income (loss) from continuing operations, net of tax		$	(12	)					$	122
Income from discontinued operations, net of tax		10							3
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	(2	)					$	125
Earnings (loss) per share available (attributable) to Tenet Healthcare Corporation common shareholders:
Basic
Continuing operations		$	(0.12	)					$	1.20
Discontinued operations		0.10							0.03
		$	(0.02	)					$	1.23
Diluted
Continuing operations		$	(0.12	)					$	1.18
Discontinued operations		0.10							0.03
		$	(0.02	)					$	1.21
Weighted average shares and dilutive securities outstanding (in thousands):
Basic		102,993							101,770
Diluted*		102,993							103,416

*

Had we generated income from continuing operations available to common shareholders in the six months ended June 30, 2019 the effect of employee stock options, restricted stock units and deferred compensation units on the diluted shares calculation would have been an increase of 1,592 thousand shares.

TENET HEALTHCARE CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited)
		June 30,				December 31,
(Dollars in millions)		2019				2018
ASSETS
Current assets:
Cash and cash equivalents		$	249			$	411
Accounts receivable			2,734				2,595
Inventories of supplies, at cost			309				305
Income tax receivable			19				21
Assets held for sale			—				107
Other current assets			1,393				1,197
Total current assets			4,704				4,636
Investments and other assets			2,297				1,456
Deferred income taxes			268				312
Property and equipment, at cost, less accumulated depreciation and amortization			6,995				6,993
Goodwill			7,298				7,281
Other intangible assets, at cost, less accumulated amortization			1,645				1,731
Total assets		$	23,207			$	22,409
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt		$	664			$	182
Accounts payable			1,088				1,207
Accrued compensation and benefits			720				838
Professional and general liability reserves			228				216
Accrued interest payable			233				240
Liabilities held for sale			—				43
Other current liabilities			1,217				1,131
Total current liabilities			4,150				3,857
Long-term debt, net of current portion			14,312				14,644
Professional and general liability reserves			669				666
Defined benefit plan obligations			507				521
Deferred income taxes			36				36
Other long-term liabilities			1,354				578
Total liabilities			21,028				20,302
Commitments and contingencies
Redeemable noncontrolling interests in equity of consolidated subsidiaries			1,462				1,420
Equity:
Shareholders’ equity:
Common stock			7				7
Additional paid-in capital			4,755				4,747
Accumulated other comprehensive loss			(219	)			(223	)
Accumulated deficit			(2,237	)			(2,236	)
Common stock in treasury, at cost			(2,414	)			(2,414	)
Total shareholders’ deficit			(108	)			(119	)
Noncontrolling interests			825				806
Total equity			717				687
Total liabilities and equity		$	23,207			$	22,409

TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Six Months Ended
(Dollars in millions)		June 30,
		2019				2018
Net income		$	177			$	299
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		422				398
Deferred income tax expense		42				108
Stock-based compensation expense		23				20
Impairment and restructuring charges, and acquisition-related costs		55				77
Litigation and investigation costs		31				19
Net losses (gains) on sales, consolidation and deconsolidation of facilities		2				(118		)
Loss from early extinguishment of debt		47				2
Equity in earnings of unconsolidated affiliates, net of distributions received		(2		)		10
Amortization of debt discount and debt issuance costs		21				22
Pre-tax income from discontinued operations		(12		)		(3		)
Other items, net		(10		)		(1		)
Changes in cash from operating assets and liabilities:
Accounts receivable		(138		)		(13		)
Inventories and other current assets		(64		)		144
Income taxes		(2		)		(18		)
Accounts payable, accrued expenses and other current liabilities		(217		)		(371		)
Other long-term liabilities		4				(48		)
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements		(80		)		(63		)
Net cash used in operating activities from discontinued operations, excluding income taxes		(5		)		(3		)
Net cash provided by operating activities		294				461
Cash flows from investing activities:
Purchases of property and equipment — continuing operations		(336		)		(268		)
Purchases of businesses or joint venture interests, net of cash acquired		(13		)		(89		)
Proceeds from sales of facilities and other assets — continuing operations		40				481
Proceeds from sales of facilities and other assets — discontinued operations		17				—
Proceeds from sales of marketable securities, long-term investments and other assets		9				143
Purchases of equity investments		(9		)		(37		)
Other long-term assets		(4		)		3
Other items, net		(7		)		(8		)
Net cash provided by (used in) investing activities		(303		)		225
Cash flows from financing activities:
Repayments of borrowings under credit facility		(1,095		)		(360		)
Proceeds from borrowings under credit facility		1,285				360
Repayments of other borrowings		(1,668		)		(161		)
Proceeds from other borrowings		1,516				14
Debt issuance costs		(18		)		—
Distributions paid to noncontrolling interests		(144		)		(140		)
Proceeds from sales of noncontrolling interests		9				7
Purchases of noncontrolling interests		(6		)		(642		)
Proceeds from exercise of stock options and employee stock purchase plan		3				14
Other items, net		(35		)		14
Net cash used in financing activities		(153		)		(894		)
Net decrease in cash and cash equivalents		(162		)		(208		)
Cash and cash equivalents at beginning of period		411				611
Cash and cash equivalents at end of period		$	249			$	403
Supplemental disclosures:
Interest paid, net of capitalized interest		$	(484	)		$	(501	)
Income tax payments, net		$	(13	)		$	(21	)

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day		Three Months Ended June 30,											Six Months Ended June 30,
and per adjusted patient admission amounts)		2019				2018				Change			2019				2018				Change
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		65				68				(3	)	*	65				68				(3	)	*
Total admissions		169,352				168,453				0.5	%		344,078				350,759				(1.9	)%
Adjusted patient admissions		304,066				306,063				(0.7	)%		612,199				626,931				(2.3	)%
Paying admissions (excludes charity and uninsured)		159,128				158,216				0.6	%		323,921				330,706				(2.1	)%
Charity and uninsured admissions		10,224				10,237				(0.1	)%		20,157				20,053				0.5	%
Admissions through emergency department		121,088				115,036				5.3	%		247,167				240,112				2.9	%
Paying admissions as a percentage of total admissions		94.0		%		93.9		%		0.1	%	*	94.1		%		94.3		%		(0.2	)%	*
Charity and uninsured admissions as a percentage of total admissions		6.0		%		6.1		%		(0.1	)%	*	5.9		%		5.7		%		0.2	%	*
Emergency department admissions as a percentage of total admissions		71.5		%		68.3		%		3.2	%	*	71.8		%		68.5		%		3.3	%	*
Surgeries — inpatient		44,641				46,274				(3.5	)%		89,436				93,497				(4.3	)%
Surgeries — outpatient		60,936				63,805				(4.5	)%		119,154				126,813				(6.0	)%
Total surgeries		105,577				110,079				(4.1	)%		208,590				220,310				(5.3	)%
Patient days — total		787,582				766,519				2.7	%		1,609,661				1,625,167				(1.0	)%
Adjusted patient days		1,387,929				1,373,480				1.1	%		2,808,099				2,859,619				(1.8	)%
Average length of stay (days)		4.65				4.55				2.2	%		4.68				4.63				1.1	%
Licensed beds (at end of period)		17,221				18,314				(6.0	)%		17,221				18,314				(6.0	)%
Average licensed beds		17,221				18,362				(6.2	)%		17,338				18,523				(6.4	)%
Utilization of licensed beds		50.3		%		45.9		%		4.4	%	*	51.3		%		48.5		%		2.8	%	*
Outpatient Visits
Total visits		1,693,805				1,749,847				(3.2	)%		3,408,197				3,592,386				(5.1	)%
Paying visits (excludes charity and uninsured)		1,581,530				1,633,372				(3.2	)%		3,185,242				3,359,348				(5.2	)%
Charity and uninsured visits		112,275				116,475				(3.6	)%		222,955				233,038				(4.3	)%
Emergency department visits		637,107				643,036				(0.9	)%		1,294,556				1,340,037				(3.4	)%
Paying visits as a percentage of total visits		93.4		%		93.3		%		0.1	%	*	93.5		%		93.5		%		—	%	*
Charity and uninsured visits as a percentage of total visits		6.6		%		6.7		%		(0.1	)%	*	6.5		%		6.5		%		—	%	*
Total emergency department admissions and visits		758,195				758,072				—	%		1,541,723				1,580,149				(2.4	)%
Revenues
Net patient service revenues(3)		$	3,547			$	3,443			3.0	%		$	7,129			$	7,086			0.6	%
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient service revenue(3) per adjusted patient admission		$	11,665			$	11,249			3.7	%		$	11,645			$	11,303			3.0	%
Net patient service revenue(3) per adjusted patient day		$	2,556			$	2,507			2.0	%		$	2,539			$	2,478			2.5	%
Total selected operating expenses (salaries, wages and benefits, supplies and other operating expenses) per adjusted patient admission(2)		$	10,988			$	10,619			3.5	%		$	10,983			$	10,590			3.7	%
Net patient service revenues(3) from:
Medicare		20.3		%		20.4		%		(0.1	)%	*	20.7		%		20.9		%		(0.2	)%	*
Medicaid		8.9		%		9.1		%		(0.2	)%	*	8.9		%		9.0		%		(0.1	)%	*
Managed care		65.7		%		66.0		%		(0.3	)%	*	65.7		%		65.5		%		0.2	%	*
Uninsured		0.3		%		0.2		%		0.1	%	*	0.2		%		0.6		%		(0.4	)%	*
Indemnity and other		4.8		%		4.3		%		0.5	%	*	4.5		%		4.0		%		0.5	%	*

(1)	Represents the consolidated results of Tenet’s acute care hospitals and related outpatient facilities included in the Hospital Operations and other segment.
(2)	Excludes operating expenses from Tenet’s health plans.
(3)	Less implicit price concessions.
*	This change is the difference between the 2019 and 2018 amounts shown.

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day		Three Months Ended June 30,											Six Months Ended June 30,
and per adjusted patient admission amounts)		2019				2018				Change			2019				2018				Change
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		65				65				—			65				65				—		*
Total admissions		169,352				163,903				3.3	%		342,822				337,587				1.6	%
Adjusted patient admissions		304,066				297,460				2.2	%		609,937				601,605				1.4	%
Paying admissions (excludes charity and uninsured)		159,129				153,816				3.5	%		322,761				318,055				1.5	%
Charity and uninsured admissions		10,223				10,087				1.3	%		20,061				19,532				2.7	%
Admissions through emergency department		121,088				111,902				8.2	%		246,316				231,859				6.2	%
Paying admissions as a percentage of total admissions		94.0		%		93.8		%		0.2	%		94.1		%		94.2		%		(0.1	)%	*
Charity and uninsured admissions as a percentage of total admissions		6.0		%		6.2		%		(0.2	)%		5.9		%		5.8		%		0.1	%	*
Emergency department admissions as a percentage of total admissions		71.5		%		68.3		%		3.2	%		71.8		%		68.7		%		3.1	%	*
Surgeries — inpatient		44,641				45,191				(1.2	)%		89,194				90,243				(1.2	)%
Surgeries — outpatient		60,936				62,205				(2.0	)%		118,832				121,925				(2.5	)%
Total surgeries		105,577				107,396				(1.7	)%		208,026				212,168				(2.0	)%
Patient days — total		787,582				743,442				5.9	%		1,602,911				1,560,442				2.7	%
Adjusted patient days		1,387,929				1,329,915				4.4	%		2,795,982				2,735,483				2.2	%
Average length of stay (days)		4.65				4.54				2.4	%		4.68				4.62				1.3	%
Licensed beds (at end of period)		17,221				17,246				(0.1	)%		17,221				17,246				(0.1	)%
Average licensed beds		17,221				17,246				(0.1	)%		17,221				17,246				(0.1	)%
Utilization of licensed beds		50.3		%		47.4		%		2.9	%		51.4		%		50.0		%		1.4	%	*
Outpatient Visits
Total visits		1,693,805				1,673,056				1.2	%		3,380,669				3,389,952				(0.3	)%
Paying visits (excludes charity and uninsured)		1,581,555				1,560,950				1.3	%		3,159,190				3,168,144				(0.3	)%
Charity and uninsured visits		112,250				112,106				0.1	%		221,479				221,808				(0.1	)%
Emergency department visits		637,107				622,898				2.3	%		1,288,959				1,286,620				0.2	%
Paying visits as a percentage of total visits		93.4		%		93.3		%		0.1	%		93.4		%		93.5		%		(0.1	)%	*
Charity and uninsured visits as a percentage of total visits		6.6		%		6.7		%		(0.1	)%		6.6		%		6.5		%		0.1	%	*
Total emergency department admissions and visits		758,195				734,800				3.2	%		1,535,275				1,518,479				2.8	%
Revenues
Net patient service revenues(2)		$	3,547			$	3,357			5.7	%		$	7,104			$	6,850			3.7	%
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient service revenue(2) per adjusted patient admission		$	11,665			$	11,286			3.4	%		$	11,647			$	11,386			2.3	%
Net patient service revenue(2) per adjusted patient day		$	2,556			$	2,524			1.3	%		$	2,541			$	2,504			1.5	%
Net patient service revenues(2) from:
Medicare		20.3		%		20.1		%		0.2	%		20.6		%		20.5		%		0.1	%	*
Medicaid		8.9		%		8.9		%		—	%		8.9		%		8.8		%		0.1	%	*
Managed care		65.7		%		66.4		%		(0.7	)%		65.8		%		65.8		%		—	%	*
Uninsured		0.3		%		0.2		%		0.1	%		0.2		%		0.8		%		(0.6	)%	*
Indemnity and other		4.8		%		4.4		%		0.4	%		4.5		%		4.1		%		0.4	%	*

(1)	Information for our Hospital Operations and other segment is presented on a same-hospital basis, which includes the results of our same 65 hospitals operated throughout the six months ended June 30, 2019 and 2018 and associated outpatient facilities, but excludes the results of hospitals Tenet divested since January 1, 2018.
(2)	Less implicit price concessions.
*	This change is the difference between the 2019 and 2018 amounts shown.

TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in millions except per share amounts)		Three Months Ended								Six Months Ended
		3/31/2019				6/30/2019				6/30/2019
Net operating revenues		$	4,545			$	4,560			$	9,105
Equity in earnings of unconsolidated affiliates		34				42				76
Operating expenses:
Salaries, wages and benefits		2,153				2,148				4,301
Supplies		741				753				1,494
Other operating expenses, net		1,074				1,044				2,118
Electronic health record incentives		(1		)		—				(1		)
Depreciation and amortization		208				214				422
Impairment and restructuring charges, and acquisition-related costs		19				36				55
Litigation and investigation costs		13				18				31
Net losses on sales, consolidation and deconsolidation of facilities		1				1				2
Operating income		371				388				759
Interest expense		(251		)		(247		)		(498		)
Other non-operating income (expense), net		1				(1		)		—
Loss from early extinguishment of debt		(47		)		—				(47		)
Income from continuing operations, before income taxes		74				140				214
Income tax expense		(17		)		(30		)		(47		)
Income from continuing operations, before discontinued operations		57				110				167
Discontinued operations:
Income from operations		10				2				12
Income tax expense		(2		)		—				(2		)
Income from discontinued operations		8				2				10
Net income		65				112				177
Less: Net income available to noncontrolling interests		84				95				179
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	(19	)		$	17			$	(2	)
Amounts available (attributable) to Tenet Healthcare Corporation common shareholders
Income (loss) from continuing operations, net of tax		$	(27	)		$	15			$	(12	)
Income from discontinued operations, net of tax		8				2				10
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	(19	)		$	17			$	(2	)
Earnings (loss) per share available (attributable) to Tenet Healthcare Corporation common shareholders:
Basic
Continuing operations		$	(0.26	)		$	0.15			$	(0.12	)
Discontinued operations		0.08				0.02				0.10
		$	(0.18	)		$	0.17			$	(0.02	)
Diluted
Continuing operations		$	(0.26	)		$	0.14			$	(0.12	)
Discontinued operations		0.08				0.02				0.10
		$	(0.18	)		$	0.16			$	(0.02	)
Weighted average shares and dilutive securities outstanding (in thousands):
Basic		102,788				103,198				102,993
Diluted		102,788				104,629				102,993

TENET HEALTHCARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in millions except per share amounts)		Three Months Ended																Year Ended
		3/31/2018				6/30/2018				9/30/2018				12/31/2018				12/31/2018
Net operating revenues		$	4,699			$	4,506			$	4,489			$	4,619			$	18,313
Equity in earnings of unconsolidated affiliates		25				39				33				53				150
Operating expenses:
Salaries, wages and benefits		2,227				2,135				2,116				2,156				8,634
Supplies		774				748				726				756				3,004
Other operating expenses, net		1,060				1,027				1,094				1,078				4,259
Electronic health record incentives		(1		)		—				—				(2		)		(3		)
Depreciation and amortization		204				194				204				200				802
Impairment and restructuring charges, and acquisition-related costs		47				30				46				86				209
Litigation and investigation costs		6				13				9				10				38
Net losses (gains) on sales, consolidation and deconsolidation of facilities		(110		)		(8		)		7				(16		)		(127		)
Operating income		517				406				320				404				1,647
Interest expense		(255		)		(254		)		(249		)		(246		)		(1,004		)
Other non-operating expense, net		(1		)		(1		)		—				(3		)		(5		)
Gain (loss) from early extinguishment of debt		(1		)		(1		)		—				3				1
Income from continuing operations, before income taxes		260				150				71				158				639
Income tax expense		(70		)		(44		)		(6		)		(56		)		(176		)
Income from continuing operations, before discontinued operations		190				106				65				102				463
Discontinued operations:
Income from operations		1				2				—				1				4
Income tax expense		—				—				—				(1		)		(1		)
Income from discontinued operations		1				2				—				—				3
Net income		191				108				65				102				466
Less: Net income available to noncontrolling interests		92				82				74				107				355
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	99			$	26			$	(9	)		$	(5	)		$	111
Amounts available (attributable) to Tenet Healthcare Corporation common shareholders
Income (loss) from continuing operations, net of tax		$	98			$	24			$	(9	)		$	(5	)		$	108
Income from discontinued operations, net of tax		1				2				—				—				3
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	99			$	26			$	(9	)		$	(5	)		$	111
Earnings (loss) per share available (attributable) to Tenet Healthcare Corporation common shareholders:
Basic
Continuing operations		$	0.97			$	0.23			$	(0.09	)		$	(0.05	)		$	1.06
Discontinued operations		0.01				0.02				—				—				0.03
		$	0.98			$	0.25			$	(0.09	)		$	(0.05	)		$	1.09
Diluted
Continuing operations		$	0.95			$	0.23			$	(0.09	)		$	(0.05	)		$	1.04
Discontinued operations		0.01				0.02				—				—				0.03
		$	0.96			$	0.25			$	(0.09	)		$	(0.05	)		$	1.07
Weighted average shares and dilutive securities outstanding (in thousands):
Basic		101,392				102,147				102,402				102,501				102,110
Diluted		102,656				104,177				102,402				102,501				103,881

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day and per adjusted patient admission amounts)
		Three Months Ended								Six Months Ended
		3/31/2019				6/30/2019				06/30/2019
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		65				65				65
Total admissions		174,726				169,352				344,078
Adjusted patient admissions		308,133				304,066				612,199
Paying admissions (excludes charity and uninsured)		164,793				159,128				323,921
Charity and uninsured admissions		9,933				10,224				20,157
Admissions through emergency department		126,079				121,088				247,167
Paying admissions as a percentage of total admissions		94.3		%		94.0		%		94.1		%
Charity and uninsured admissions as a percentage of total admissions		5.7		%		6.0		%		5.9		%
Emergency department admissions as a percentage of total admissions		72.2		%		71.5		%		71.8		%
Surgeries — inpatient		44,795				44,641				89,436
Surgeries — outpatient		58,218				60,936				119,154
Total surgeries		103,013				105,577				208,590
Patient days — total		822,079				787,582				1,609,661
Adjusted patient days		1,420,170				1,387,929				2,808,099
Average length of stay (days)		4.70				4.65				4.68
Licensed beds (at end of period)		17,221				17,221				17,221
Average licensed beds		17,455				17,221				17,338
Utilization of licensed beds		52.3		%		50.3		%		51.3		%
Outpatient Visits
Total visits		1,714,392				1,693,805				3,408,197
Paying visits (excludes charity and uninsured)		1,603,712				1,581,530				3,185,242
Charity and uninsured visits		110,680				112,275				222,955
Emergency department visits		657,449				637,107				1,294,556
Paying visits as a percentage of total visits		93.5		%		93.4		%		93.5		%
Charity and uninsured visits as a percentage of total visits		6.5		%		6.6		%		6.5		%
Total emergency department admissions and visits		783,528				758,195				1,541,723
Revenues
Net patient service revenues(3)		$	3,582			$	3,547			$	7,129
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient service revenue(3) per adjusted patient admission		$	11,625			$	11,665			$	11,645
Net patient service revenue(3) per adjusted patient day		$	2,522			$	2,556			$	2,539
Total selected operating expenses (salaries, wages and benefits, supplies and other operating expenses) per adjusted patient admission(2)		$	10,979			$	10,988			$	10,983
Net patient service revenues(3) from:
Medicare		21.2		%		20.3		%		20.7		%
Medicaid		8.8		%		8.9		%		8.9		%
Managed care		65.7		%		65.7		%		65.7		%
Uninsured		—		%		0.3		%		0.2		%
Indemnity and other		4.3		%		4.8		%		4.5		%

(1)	Represents the consolidated results of Tenet’s acute care hospitals and related outpatient facilities included in the Hospital Operations and other segment.
(2)	Excludes operating expenses from Tenet’s health plans.
(3)	Less implicit price concessions.

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING TOTAL HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day and per adjusted patient admission amounts)
		Three Months Ended																Year Ended
		3/31/2018				6/30/2018				9/30/2018				12/31/2018				12/31/2018
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		69				68				68				68				68
Total admissions		182,306				168,453				168,201				170,407				689,367
Adjusted patient admissions		320,868				306,063				306,197				308,113				1,241,241
Paying admissions (excludes charity and uninsured)		172,490				158,216				157,193				160,172				648,071
Charity and uninsured admissions		9,816				10,237				11,008				10,235				41,296
Admissions through emergency department		125,076				115,036				116,727				120,012				476,851
Paying admissions as a percentage of total admissions		94.6		%		93.9		%		93.5		%		94.0		%		94.0		%
Charity and uninsured admissions as a percentage of total admissions		5.4		%		6.1		%		6.5		%		6.0		%		6.0		%
Emergency department admissions as a percentage of total admissions		68.6		%		68.3		%		69.4		%		70.4		%		69.2		%
Surgeries — inpatient		47,223				46,274				45,626				45,897				185,020
Surgeries — outpatient		63,008				63,805				61,468				62,638				250,919
Total surgeries		110,231				110,079				107,094				108,535				435,939
Patient days — total		858,648				766,519				761,920				779,728				3,166,815
Adjusted patient days		1,486,139				1,373,480				1,365,662				1,383,372				5,608,653
Average length of stay (days)		4.71				4.55				4.53				4.58				4.59
Licensed beds (at end of period)		18,457				18,314				18,302				17,937				17,937
Average licensed beds		18,685				18,362				18,302				17,935				18,321
Utilization of licensed beds		51.1		%		45.9		%		45.3		%		47.3		%		47.4		%
Outpatient Visits
Total visits		1,842,539				1,749,847				1,722,292				1,734,523				7,049,201
Paying visits (excludes charity and uninsured)		1,725,976				1,633,372				1,607,184				1,617,970				6,584,502
Charity and uninsured visits		116,563				116,475				115,108				116,553				464,699
Emergency department visits		697,001				643,036				638,248				649,544				2,627,829
Paying visits as a percentage of total visits		93.7		%		93.3		%		93.3		%		93.3		%		93.4		%
Charity and uninsured visits as a percentage of total visits		6.3		%		6.7		%		6.7		%		6.7		%		6.6		%
Total emergency department admissions and visits		822,077				758,072				754,975				769,556				3,104,680
Revenues
Net patient service revenues(3)		$	3,643			$	3,443			$	3,434			$	3,561			$	14,081
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient service revenue(3) per adjusted patient admission		$	11,354			$	11,249			$	11,215			$	11,557			$	11,344
Net patient service revenue(3) per adjusted patient day		$	2,451			$	2,507			$	2,515			$	2,574			$	2,511
Total selected operating expenses (salaries, wages and benefits, supplies and other operating expenses) per adjusted patient admission(2)		$	10,561			$	10,619			$	10,771			$	10,861			$	10,701
Net patient service revenues(3) from:
Medicare		21.5		%		20.4		%		19.8		%		20.1		%		20.5		%
Medicaid		8.8		%		9.1		%		9.8		%		9.1		%		9.2		%
Managed care		65.0		%		66.0		%		64.9		%		65.8		%		65.4		%
Uninsured		1.0		%		0.2		%		0.9		%		0.5		%		0.7		%
Indemnity and other		3.7		%		4.3		%		4.6		%		4.5		%		4.2		%

(1)	Represents the consolidated results of Tenet’s acute care hospitals and related outpatient facilities included in the Hospital Operations and other segment.
(2)	Excludes operating expenses from Tenet’s health plans.
(3)	Less implicit price concessions.

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day and per adjusted patient admission amounts)
		Three Months Ended								Six Months Ended
		3/31/2019				6/30/2019				6/30/2019
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		65				65				65
Total admissions		173,470				169,352				342,822
Adjusted patient admissions		305,871				304,066				609,937
Paying admissions (excludes charity and uninsured)		163,632				159,129				322,761
Charity and uninsured admissions		9,838				10,223				20,061
Admissions through emergency department		125,228				121,088				246,316
Paying admissions as a percentage of total admissions		94.3		%		94.0		%		94.1		%
Charity and uninsured admissions as a percentage of total admissions		5.7		%		6.0		%		5.9		%
Emergency department admissions as a percentage of total admissions		72.2		%		71.5		%		71.8		%
Surgeries — inpatient		44,553				44,641				89,194
Surgeries — outpatient		57,896				60,936				118,832
Total surgeries		102,449				105,577				208,026
Patient days — total		815,329				787,582				1,602,911
Adjusted patient days		1,408,053				1,387,929				2,795,982
Average length of stay (days)		4.70				4.65				4.68
Licensed beds (at end of period)		17,221				17,221				17,221
Average licensed beds		17,221				17,221				17,221
Utilization of licensed beds		52.6		%		50.3		%		51.4		%
Outpatient Visits
Total visits		1,686,864				1,693,805				3,380,669
Paying visits (excludes charity and uninsured)		1,577,635				1,581,555				3,159,190
Charity and uninsured visits		109,229				112,250				221,479
Emergency department visits		651,852				637,107				1,288,959
Paying visits as a percentage of total visits		93.5		%		93.4		%		93.4		%
Charity and uninsured visits as a percentage of total visits		6.5		%		6.6		%		6.6		%
Total emergency department admissions and visits		777,080				758,195				1,535,275
Revenues
Net patient service revenues(2)		$	3,557			$	3,547			$	7,104
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient service revenue(2) per adjusted patient admission		$	11,629			$	11,665			$	11,647
Net patient service revenue(2) per adjusted patient day		$	2,526			$	2,556			$	2,541
Net patient service revenues(2) from:
Medicare		21.0		%		20.3		%		20.6		%
Medicaid		8.8		%		8.9		%		8.9		%
Managed care		65.9		%		65.7		%		65.8		%
Uninsured		—		%		0.3		%		0.2		%
Indemnity and other		4.3		%		4.8		%		4.5		%

(1)	Information for our Hospital Operations and other segment is presented on a same-hospital basis, which includes the results of our same 65 hospitals operated throughout the six months ended June 30, 2019 and 2018 and associated outpatient facilities, but excludes the results of hospitals Tenet divested since January 1, 2018.
(2)	Less implicit price concessions.

TENET HEALTHCARE CORPORATION SELECTED STATISTICS – CONTINUING SAME HOSPITALS(1) (Unaudited)
(Dollars in millions except per adjusted patient day and per adjusted patient admission amounts)
		Three Months Ended																Year Ended
		3/31/2018				6/30/2018				9/30/2018				12/31/2018				12/31/2018
Admissions, Patient Days and Surgeries
Number of hospitals (at end of period)		65				65				65				65				65
Total admissions		173,684				163,903				164,075				166,458				668,120
Adjusted patient admissions		304,145				297,460				298,221				300,562				1,200,388
Paying admissions (excludes charity and uninsured)		164,239				153,816				153,227				156,392				627,674
Charity and uninsured admissions		9,445				10,087				10,848				10,066				40,446
Admissions through emergency department		119,957				111,902				113,833				117,229				462,921
Paying admissions as a percentage of total admissions		94.6		%		93.8		%		93.4		%		94.0		%		93.9		%
Charity and uninsured admissions as a percentage of total admissions		5.4		%		6.2		%		6.6		%		6.0		%		6.1		%
Emergency department admissions as a percentage of total admissions		69.1		%		68.3		%		69.4		%		70.4		%		69.3		%
Surgeries — inpatient		45,052				45,191				44,783				45,012				180,038
Surgeries — outpatient		59,720				62,205				60,080				61,151				243,156
Total surgeries		104,772				107,396				104,863				106,163				423,194
Patient days — total		817,000				743,442				740,870				758,359				3,059,671
Adjusted patient days		1,405,568				1,329,915				1,325,229				1,342,745				5,403,457
Average length of stay (days)		4.70				4.54				4.52				4.56				4.58
Licensed beds (at end of period)		17,246				17,246				17,234				17,237				17,237
Average licensed beds		17,246				17,246				17,234				17,235				17,240
Utilization of licensed beds		52.6		%		47.4		%		46.7		%		47.8		%		48.6		%
Outpatient Visits
Total visits		1,716,896				1,673,056				1,647,013				1,658,541				6,695,506
Paying visits (excludes charity and uninsured)		1,607,194				1,560,950				1,536,247				1,547,018				6,251,409
Charity and uninsured visits		109,702				112,106				110,766				111,523				444,097
Emergency department visits		663,722				622,898				617,925				630,557				2,535,102
Paying visits as a percentage of total visits		93.6		%		93.3		%		93.3		%		93.3		%		93.4		%
Charity and uninsured visits as a percentage of total visits		6.4		%		6.7		%		6.7		%		6.7		%		6.6		%
Total emergency department admissions and visits		783,679				734,800				731,758				747,786				2,998,023
Revenues
Net patient service revenues(2)		$	3,493			$	3,357			$	3,367			$	3,490			$	13,707
Revenues on a Per Adjusted Patient Admission and Per Adjusted Patient Day
Net patient service revenue(2) per adjusted patient admission		$	11,485			$	11,286			$	11,290			$	11,612			$	11,419
Net patient service revenue(2) per adjusted patient day		$	2,485			$	2,524			$	2,541			$	2,599			$	2,537
Net patient service revenues(2) from:
Medicare		20.9		%		20.1		%		19.5		%		19.8		%		20.1		%
Medicaid		8.7		%		8.9		%		9.8		%		9.1		%		9.1		%
Managed care		65.3		%		66.4		%		65.2		%		66.1		%		65.8		%
Uninsured		1.3		%		0.2		%		0.9		%		0.5		%		0.7		%
Indemnity and other		3.8		%		4.4		%		4.6		%		4.5		%		4.3		%

(1)	Information for our Hospital Operations and other segment is presented on a same-hospital basis, which includes the results of our same 65 hospitals operated throughout the six months ended June 30, 2019 and 2018 and associated outpatient facilities, but excludes the results of hospitals Tenet divested since January 1, 2018.
(2)	Less implicit price concessions.

TENET HEALTHCARE CORPORATION SEGMENT REPORTING (Unaudited)
(Dollars in millions)										June 30,				December 31,
										2019				2018
Assets
Hospital Operations and other										$	16,072			$	15,684
Ambulatory Care										6,057				5,711
Conifer										1,078				1,014
Total										$	23,207			$	22,409
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2019				2018				2019				2018
Capital expenditures:
Hospital Operations and other		$	118			$	108			$	288			$	228
Ambulatory Care		21				13				41				28
Conifer		5				4				7				12
Total		$	144			$	125			$	336			$	268
Net operating revenues:
Hospital Operations and other total prior to inter-segment eliminations(1)		$	3,827			$	3,733			$	7,689			$	7,680
Ambulatory Care		524				531				1,004				1,029
Conifer
Tenet		146				144				292				294
Other customers		209				242				412				496
Total Conifer revenues		355				386				704				790
Inter-segment eliminations		(146		)		(144		)		(292		)		(294		)
Total		$	4,560			$	4,506			$	9,105			$	9,205
Equity in earnings of unconsolidated affiliates:
Hospital Operations and other		$	8			$	6			$	11			$	4
Ambulatory Care		34				33				65				60
Total		$	42			$	39			$	76			$	64
Adjusted EBITDA:
Hospital Operations and other(2)		$	347			$	345			$	684			$	747
Ambulatory Care		207				198				384				363
Conifer		103				91				202				189
Total		$	657			$	634			$	1,270			$	1,299
Depreciation and amortization:
Hospital Operations and other		$	185			$	164			$	364			$	339
Ambulatory Care		18				17				36				34
Conifer		11				13				22				25
Total		$	214			$	194			$	422			$	398

(1)	Hospital Operations and other revenues includes health plan revenues of approximately $1 million for both the three and six months ended June 30, 2019, and less than $1 million and $6 million for the three and six months ended June 30, 2018, respectively.
(2)	Hospital Operations and other Adjusted EBITDA excludes health plan EBITDA of less than $1 million and $(1) million for the three and six months ended June 30, 2019, respectively, and $1 million and less than $1 million for the three and six months ended June 30, 2018, respectively.

TENET HEALTHCARE CORPORATION STATEMENTS OF OPERATIONS – AMBULATORY CARE SEGMENT (Unaudited)
(Dollars in millions)		Three Months Ended June 30,
		2019								2018
		Ambulatory Care as Reported Under GAAP				Unconsolidated Affiliates				Ambulatory Care as Reported Under GAAP				Unconsolidated Affiliates
Net operating revenues(1)		$	524			$	619			$	531			$	547
Equity in earnings of unconsolidated affiliates(2)		34				—				33				—
Operating expenses:
Salaries, wages and benefits		157				156				165				134
Supplies		108				161				106				144
Other operating expenses, net		86				131				95				114
Depreciation and amortization		18				22				17				17
Impairment and restructuring charges, and acquisition-related costs		2				—				6				—
Net losses on sales, consolidation and deconsolidation of facilities		2				—				—				—
Operating income		185				149				175				138
Interest expense		(32		)		(6		)		(37		)		(5		)
Other		3				—				1				1
Net income from continuing operations, before income taxes		156				143				139				134
Income tax expense		(20		)		(2		)		(18		)		(2		)
Net income		136				$	141			121				$	132
Less: Net income available to noncontrolling interests		78								75
Net income available to Tenet Healthcare Corporation common shareholders		$	58							$	46
Equity in earnings of unconsolidated affiliates						$	34							$	33

(1)

On a same-facility system-wide basis, net revenue in Tenet’s Ambulatory Care segment increased 5.3% during the three months ended June 30, 2019, with cases increasing 3.2% and revenue per case increasing 2.0%.

(2)

At June 30, 2019, 112 of the 344 facilities in the Company’s Ambulatory segment were not consolidated based on the nature of the segment’s joint venture relationships with physicians and prominent healthcare systems. Although revenues of the segment’s unconsolidated facilities are not recorded as revenues by the Company, equity in earnings of unconsolidated affiliates is nonetheless a significant portion of the Company’s overall earnings. To help analyze results of operations, management also uses system-wide operating measures such as system-wide revenue growth, which includes revenues of both consolidated and unconsolidated facilities. We control our remaining 232 facilities and account for these investments as consolidated subsidiaries.

TENET HEALTHCARE CORPORATION STATEMENTS OF OPERATIONS – AMBULATORY CARE SEGMENT (Unaudited)
(Dollars in millions)		Six Months Ended June 30,
		2019								2018
		Ambulatory Care as Reported Under GAAP				Unconsolidated Affiliates				Ambulatory Care as Reported Under GAAP				Unconsolidated Affiliates
Net operating revenues(1)		$	1,004			$	1,187			$	1,029			$	1,040
Equity in earnings of unconsolidated affiliates(2)		65				—				60				—
Operating expenses:
Salaries, wages and benefits		310				303				327				254
Supplies		207				310				212				274
Other operating expenses, net		168				257				187				219
Depreciation and amortization		36				42				34				33
Impairment and restructuring charges, and acquisition-related costs		5				—				7				—
Net gains on sales, consolidation and deconsolidation of facilities		(3		)		(26		)		(1		)		—
Operating income		346				301				323				260
Interest expense		(63		)		(13		)		(73		)		(10		)
Other		6				6				3				1
Net income from continuing operations, before income taxes		289				294				253				251
Income tax expense		(35		)		(4		)		(33		)		(4		)
Net income		254				$	290			220				$	247
Less: Net income available to noncontrolling interests		146								139
Net income available to Tenet Healthcare Corporation common shareholders		$	108							$	81
Equity in earnings of unconsolidated affiliates						$	65							$	60

(1)

On a same-facility system-wide basis, net revenue in Tenet’s Ambulatory Care segment increased 4.8% during the six months ended June 30, 2019, with cases increasing 2.1% and revenue per case increasing 2.7%.

(2)

At June 30, 2019, 112 of the 344 facilities in the Company’s Ambulatory segment were not consolidated based on the nature of the segment’s joint venture relationships with physicians and prominent healthcare systems. Although revenues of the segment’s unconsolidated facilities are not recorded as revenues by the Company, equity in earnings of unconsolidated affiliates is nonetheless a significant portion of the Company’s overall earnings. To help analyze results of operations, management also uses system-wide operating measures such as system-wide revenue growth, which includes revenues of both consolidated and unconsolidated facilities. We control our remaining 232 facilities and account for these investments as consolidated subsidiaries.

Non-GAAP Financial Measures

Adjusted EBITDA, a non-GAAP measure, is defined by the Company as net income available (loss attributable) to Tenet Healthcare Corporation common shareholders before (1) the cumulative effect of changes in accounting principle, (2) net loss attributable (income available) to noncontrolling interests, (3) income (loss) from discontinued operations, (4) income tax benefit (expense), (5) gain (loss) from early extinguishment of debt, (6) other non-operating income (expense), net, (7) interest expense, (8) litigation and investigation (costs) benefit, net of insurance recoveries, (9) net gains (losses) on sales, consolidation and deconsolidation of facilities, (10) impairment and restructuring charges and acquisition-related costs, (11) depreciation and amortization and (12) income (loss) from divested operations and closed businesses (i.e., the Company’s health plan businesses). Litigation and investigation costs do not include ordinary course of business malpractice and other litigation and related expense.

Adjusted net income available (loss attributable) from continuing operations to Tenet Healthcare Corporation common shareholders, a non-GAAP measure, is defined by the Company as net income available (loss attributable) to Tenet Healthcare Corporation common shareholders before (1) net income (loss) from discontinued operations, (2) impairment and restructuring charges, and acquisition-related costs, (3) litigation and investigation costs, (4) net gains (losses) on sales, consolidation and deconsolidation of facilities, (5) gain (loss) from early extinguishment of debt, (6) income (loss) from divested operations and closed businesses, and (7) the associated impact of these items on taxes and noncontrolling interests. Adjusted diluted earnings (loss) per share from continuing operations, a non-GAAP term, is defined by the Company as Adjusted net income available (loss attributable) from continuing operations to Tenet Healthcare Corporation common shareholders divided by the weighted average primary or diluted shares outstanding in the reporting period.

Free Cash Flow, a non-GAAP measure, is defined by the Company as (1) net cash provided by (used in) operating activities, less (2) purchases of property and equipment from continuing operations.

Adjusted Free Cash Flow, a non-GAAP measure, is defined by the Company as (1) Adjusted net cash provided by (used in) operating activities from continuing operations, less (2) purchases of property and equipment from continuing operations. Adjusted net cash provided by (used in) operating activities, a non-GAAP measure, is defined by the Company as cash provided by (used in) operating activities prior to (1) payments for restructuring charges, acquisition-related costs and litigation costs and settlements, and (2) net cash provided by (used in) operating activities from discontinued operations.

The Company believes the foregoing non-GAAP measures are useful to investors and analysts because they present additional information on the Company’s financial performance. Investors, analysts, Company management and the Company’s Board of Directors utilize these non-GAAP measures, in addition to GAAP measures, to track the Company’s financial and operating performance and compare the Company’s performance to its peer companies, which utilize similar non-GAAP measures in their presentations. The Human Resources Committee of the Company’s Board of Directors also uses certain of these measures to evaluate management’s performance for the purpose of determining incentive compensation. Additional information regarding the purpose and utility of specific non-GAAP measures used in this release is set forth below.

The Company believes that Adjusted EBITDA is a useful measure, in part, because certain investors and analysts use both historical and projected Adjusted EBITDA, in addition to other GAAP and non-GAAP measures, as factors in determining the estimated fair value of shares of the Company’s common stock. Company management also regularly reviews the Adjusted EBITDA performance for each operating segment. The Company does not use Adjusted EBITDA to measure liquidity, but instead to measure operating performance.

We use, and we believe investors and analysts use, Free Cash Flow and Adjusted Free Cash Flow as supplemental measures to analyze cash flows generated from our operations because we believe it is useful to investors in evaluating our ability to fund distributions paid to noncontrolling interests, acquisitions, purchasing equity interests in joint ventures or repaying debt.

These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Because these measures exclude many items that are included in our financial statements, they do not provide a complete measure of our operating performance. For example, the Company’s definitions of Free Cash Flow and Adjusted Free Cash Flow do not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows From Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, (ii) distributions paid to noncontrolling interests, or (iii) payments under the Put/Call Agreement for USPI redeemable noncontrolling interest, which are recorded on the Statement of Cash Flows as the purchase of noncontrolling interest. Accordingly, investors are encouraged to use GAAP measures when evaluating the Company’s financial performance.

A reconciliation of net income available (loss attributable) to Tenet Healthcare Corporation common shareholders, the most comparable GAAP measure, to Adjusted EBITDA is set forth in Table #1 below for each quarter in 2018 and 2019. A reconciliation of net income available (loss attributable) to Tenet Healthcare Corporation common shareholders, the most comparable GAAP measure, to Adjusted net income available (loss attributable) from continuing operations to Tenet Healthcare Corporation common shareholders is set forth in Table #2 below for each quarter in 2018 and 2019. A reconciliation of net cash provided by operating activities, the most comparable GAAP measure, to Free Cash Flow and Adjusted Free Cash Flow is set forth in Table #3 below for each quarter in 2018 and 2019.

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #1 – Reconciliation of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA for 2019 (Unaudited)
(Dollars in millions)		2019
		1st Qtr				2nd Qtr				YTD
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	(19	)		$	17			$	(2	)
Less: Net income available to noncontrolling interests		(84		)		(95		)		(179		)
Income from discontinued operations, net of tax		8				2				10
Income from continuing operations		57				110				167
Income tax expense		(17		)		(30		)		(47		)
Loss from early extinguishment of debt		(47		)		—				(47		)
Other non-operating income (expense), net		1				(1		)		—
Interest expense		(251		)		(247		)		(498		)
Operating income		371				388				759
Litigation and investigation costs		(13		)		(18		)		(31		)
Net losses on sales, consolidation and deconsolidation of facilities		(1		)		(1		)		(2		)
Impairment and restructuring charges, and acquisition-related costs		(19		)		(36		)		(55		)
Depreciation and amortization		(208		)		(214		)		(422		)
Income (loss) from divested and closed businesses		(1		)		—				(1		)
Adjusted EBITDA		$	613			$	657			$	1,270
Net operating revenues		$	4,545			$	4,560			$	9,105
Less: Net operating revenues from health plans		—				1				1
Adjusted net operating revenues		$	4,545			$	4,559			$	9,104
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders as a % of net operating revenues		(0.4		)%		0.4		%		—		%
Adjusted EBITDA as a % of adjusted net operating revenues (Adjusted EBITDA margin)		13.5		%		14.4		%		13.9		%

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #1 – Reconciliation of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted EBITDA for 2018 (Unaudited)
(Dollars in millions)		2018
		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Total
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	99			$	26			$	(9	)		$	(5	)		$	111
Less: Net income available to noncontrolling interests		(92		)		(82		)		(74		)		(107		)		(355		)
Income from discontinued operations, net of tax		1				2				—				—				3
Income from continuing operations		190				106				65				102				463
Income tax expense		(70		)		(44		)		(6		)		(56		)		(176		)
Gain (loss) from early extinguishment of debt		(1		)		(1		)		—				3				1
Other non-operating expense, net		(1		)		(1		)		—				(3		)		(5		)
Interest expense		(255		)		(254		)		(249		)		(246		)		(1,004		)
Operating income		517				406				320				404				1,647
Litigation and investigation costs		(6		)		(13		)		(9		)		(10		)		(38		)
Net gains (losses) on sales, consolidation and deconsolidation of facilities		110				8				(7		)		16				127
Impairment and restructuring charges, and acquisition-related costs		(47		)		(30		)		(46		)		(86		)		(209		)
Depreciation and amortization		(204		)		(194		)		(204		)		(200		)		(802		)
Income (loss) from divested and closed businesses		(1		)		1				9				—				9
Adjusted EBITDA		$	665			$	634			$	577			$	684			$	2,560
Net operating revenues		$	4,699			$	4,506			$	4,489			$	4,619			$	18,313
Less: Net operating revenues from health plans		6				—				8				—				14
Adjusted net operating revenues		$	4,693			$	4,506			$	4,481			$	4,619			$	18,299
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders as a % of net operating revenues		2.1		%		0.6		%		(0.2		)%		(0.1		)%		0.6		%
Adjusted EBITDA as a % of adjusted net operating revenues (Adjusted EBITDA margin)		14.2		%		14.1		%		12.9		%		14.8		%		14.0		%

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #2 – Reconciliations of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available from Continuing Operations to Common Shareholders for 2019 (Unaudited)
(Dollars in millions except per share amounts)		2019
		1st Qtr				2nd Qtr				YTD
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	(19	)		$	17			$	(2	)
Net income from discontinued operations		8				$	2			10
Net income (loss) from continuing operations		(27		)		15				(12		)
Less: Impairment and restructuring charges, and acquisition-related costs		(19		)		(36		)		(55		)
Litigation and investigation costs		(13		)		(18		)		(31		)
Net losses on sales, consolidation and deconsolidation of facilities		(1		)		(1		)		(2		)
Loss from early extinguishment of debt		(47		)		—				(47		)
Income (loss) from divested and closed businesses		(1		)		—				(1		)
Tax impact of above items		(2		)		11				9
Adjusted net income available from continuing operations to common shareholders		$	56			$	59			$	115
Diluted earnings (loss) per share from continuing operations		$	(0.26	)		$	0.14			$	(0.12	)
Less: Impairment and restructuring charges, and acquisition-related costs		(0.18		)		(0.35		)		(0.53		)
Litigation and investigation costs		(0.12		)		(0.17		)		(0.30		)
Net losses on sales, consolidation and deconsolidation of facilities		(0.01		)		(0.01		)		(0.02		)
Loss from early extinguishment of debt		(0.45		)		—				(0.45		)
Income (loss) from divested and closed businesses		(0.01		)		—				(0.01		)
Tax impact of above items		(0.02		)		0.11				0.09
Adjusted diluted earnings per share from continuing operations		$	0.54			$	0.56			$	1.10
Weighted average basic shares outstanding (in thousands)		102,788				103,198				102,993
Weighted average dilutive shares outstanding (in thousands)		104,541				104,629				104,585

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #2 – Reconciliations of Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Adjusted Net Income Available from Continuing Operations to Common Shareholders for 2018 (Unaudited)
(Dollars in millions except per share amounts)		2018
		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Total
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	99			$	26			$	(9	)		$	(5	)		$	111
Net income from discontinued operations		1				$	2			—				—				3
Net income (loss) from continuing operations		98				24				(9		)		(5		)		108
Less: Impairment and restructuring charges, and acquisition-related costs		(47		)		(30		)		(46		)		(86		)		(209		)
Litigation and investigation costs		(6		)		(13		)		(9		)		(10		)		(38		)
Net gains (losses) on sales, consolidation and deconsolidation of facilities		110				8				(7		)		16				127
Gain (loss) from early extinguishment of debt		(1		)		(1		)		—				3				1
Income (loss) from divested and closed businesses		(1		)		1				9				—				9
Tax impact of above items		(16		)		8				14				19				25
Adjusted net income available from continuing operations to common shareholders		$	59			$	51			$	30			$	53			$	193
Diluted earnings (loss) per share from continuing operations		$	0.95			$	0.23			$	(0.09	)		$	(0.05	)		$	1.04
Less: Impairment and restructuring charges, and acquisition-related costs		(0.46		)		(0.29		)		(0.44		)		(0.83		)		(2.01		)
Litigation and investigation costs		(0.06		)		(0.12		)		(0.09		)		(0.10		)		(0.37		)
Net gains (losses) on sales, consolidation and deconsolidation of facilities		1.08				0.07				(0.07		)		0.15				1.22
Gain (loss) from early extinguishment of debt		(0.01		)		(0.01		)		—				0.03				0.01
Income (loss) from divested and closed businesses		(0.01		)		0.01				0.09				—				0.09
Tax impact of above items		(0.16		)		0.08				0.13				0.18				0.24
Adjusted diluted earnings per share from continuing operations		$	0.57			$	0.49			$	0.29			$	0.51			$	1.86
Weighted average basic shares outstanding (in thousands)		101,392				102,147				102,402				102,501				102,110
Weighted average dilutive shares outstanding (in thousands)		102,656				104,177				104,575				104,118				103,881

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #3 – Reconciliations of Net Cash Provided By Operating Activities to Free Cash Flow and Adjusted Free Cash Flow from Continuing Operations (Unaudited)
(Dollars in millions)		2019
		1st Qtr				2nd Qtr				YTD
Net cash provided by operating activities		$	10			$	284			$	294
Purchases of property and equipment		(192		)		(144		)		(336		)
Free cash flow		$	(182	)		$	140			$	(42	)
Net cash used in investing activities		$	(139	)		$	(164	)		$	(303	)
Net cash used in financing activities		$	(30	)		$	(123	)		$	(153	)
Net cash provided by operating activities		$	10			$	284			$	294
Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements		(32		)		(48		)		(80		)
Net cash used in operating activities from discontinued operations		(2		)		(3		)		(5		)
Adjusted net cash provided by operating activities from continuing operations		44				335				379
Purchases of property and equipment		(192		)		(144		)		(336		)
Adjusted free cash flow – continuing operations		$	(148	)		$	191			$	43

(Dollars in millions)		2018
		1st Qtr				2nd Qtr				3rd Qtr				4th Qtr				Total
Net cash provided by operating activities		$	113			$	348			$	338			$	250			$	1,049
Purchases of property and equipment		(143		)		(125		)		(136		)		(213		)		(617		)
Free cash flow		$	(30	)		$	223			$	202			$	37			$	432
Net cash provided by (used in) investing activities		$	373			$	(148	)		$	(105	)		$	(235	)		$	(115	)
Net cash used in financing activities		$	(123	)		$	(771	)		$	(136	)		$	(104	)		$	(1,134	)
Net cash provided by operating activities		$	113			$	348			$	338			$	250			$	1,049
Less: Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements		(33		)		(30		)		(50		)		(50		)		(163		)
Net cash used in operating activities from discontinued operations		(1		)		(2		)		(1		)		(1		)		(5		)
Adjusted net cash provided by operating activities from continuing operations		147				380				389				301				1,217
Purchases of property and equipment		(143		)		(125		)		(136		)		(213		)		(617		)
Adjusted free cash flow – continuing operations		$	4			$	255			$	253			$	88			$	600

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #4 – Reconciliation of Outlook Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted EBITDA (Unaudited)
(Dollars in millions)		Q3 2019								2019
		Low				High				Low				High
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	(21	)		$	21			$	16			$	121
Less: Net income available to noncontrolling interests		(95		)		(105		)		(410		)		(430		)
Net income (loss) from discontinued operations, net of tax		(5		)		—				—				5
Income tax expense		(21		)		(34		)		(165		)		(185		)
Interest expense		(250		)		(240		)		(995		)		(985		)
Loss from early extinguishment of debt(1)		—				—				(47		)		(47		)
Other non-operating expense, net		—				(5		)		(10		)		(15		)
Net losses on sales, consolidation and deconsolidation of facilities(1)		—				—				(2		)		(2		)
Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements(2)		(45		)		(35		)		(175		)		(125		)
Depreciation and amortization		(200		)		(210		)		(820		)		(840		)
Loss from divested and closed businesses		(5		)		—				(10		)		(5		)
Adjusted EBITDA		$	600			$	650			$	2,650			$	2,750
Income (loss) from continuing operations		$	(16	)		$	21			$	16			$	116
Net operating revenues		$	4,300			$	4,600			$	18,000			$	18,400
Income (loss) from continuing operations as a % of operating revenues		(0.4		)%		0.5		%		0.1		%		0.6		%
Adjusted EBITDA as a % of net operating revenues (Adjusted EBITDA margin)		14.0		%		14.1		%		14.7		%		14.9		%

(1)

The Company does not generally forecast losses from the early extinguishment of debt or net gains (losses) on sales, consolidation and deconsolidation of facilities because the Company does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook. The figures shown represent the Company’s actual year-to-date results for these items.

(2)

The Company has provided an estimate of restructuring charges and related payments that it anticipates in 2019. The figures shown represent the Company’s estimate for restructuring charges plus the actual year-to-date results for impairment charges, acquisition-related costs, and litigation costs and settlements. The Company does not generally forecast impairment charges, acquisition-related costs, litigation costs and settlements because the Company does not believe that it can forecast these items with sufficient accuracy since some of these items are indeterminable at the time the Company provides its financial Outlook.

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #5 – Reconciliations of Outlook Net Income Available (Loss Attributable) to Tenet Healthcare Corporation Common Shareholders to Outlook Adjusted Net Income Available from Continuing Operations to Common Shareholders (Unaudited)
(Dollars in millions except per share amounts)		Q3 2019								2019
		Low				High				Low				High
Net income available (loss attributable) to Tenet Healthcare Corporation common shareholders		$	(21	)		$	21			$	16			$	121
Net income (loss) from discontinued operations, net of tax		(5		)		—				—				5
Net income (loss) from continuing operations		(16		)		21				16				116
Less: Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements		(45		)		(35		)		(175		)		(125		)
Net losses on sales, consolidation and deconsolidation of facilities		—				—				(2		)		(2		)
Loss from early extinguishment of debt		—				—				(47		)		(47		)
Loss from divested and closed businesses		(5		)		—				(10		)		(5		)
Tax impact of above items		10				5				30				20
Adjusted net income available from continuing operations to common shareholders		$	24			$	51			$	220			$	275
Diluted earnings (loss) per share from continuing operations		$	(0.15	)		$	0.20			$	0.15			$	1.09
Less: Impairment and restructuring charges, acquisition-related costs, and litigation costs and settlements		(0.42		)		(0.33		)		(1.65		)		(1.18		)
Net losses on sales, consolidation and deconsolidation of facilities		—				—				(0.02		)		(0.02		)
Loss from early extinguishment of debt		—				—				(0.44		)		(0.44		)
Loss from divested and closed businesses		(0.05		)		—				(0.09		)		(0.05		)
Tax impact of above items		0.09				0.05				0.27				0.19
Adjusted diluted earnings per share from continuing operations		$	0.23			$	0.48			$	2.08			$	2.59
Weighted average basic shares outstanding (in thousands)		104,000				104,000				104,000				104,000
Weighted average dilutive shares outstanding (in thousands)		106,000				106,000				106,000				106,000

TENET HEALTHCARE CORPORATION Additional Supplemental Non-GAAP disclosures Table #6 – Reconciliation of Outlook Net Cash Provided by Operating Activities to Outlook Adjusted Free Cash Flow from Continuing Operations
(Dollars in millions)								2019
								Low				High
Net cash provided by operating activities								$	1,070			$	1,375
Less: Payments for restructuring charges, acquisition-related costs and litigation costs and settlements(1)								(175		)		(125		)
Net cash used in operating activities from discontinued operations								(5		)		—
Adjusted net cash provided by operating activities – continuing operations								1,250				1,500
Purchases of property and equipment – continuing operations								(650		)		(700		)
Adjusted free cash flow – continuing operations(2)								$	600			$	800

(1)

The Company has provided an estimate of payments that it anticipates in 2019 related to restructuring charges. The Company does not generally forecast payments related to acquisition-related costs and litigation costs and settlements because the Company does not believe that it can forecast these items with sufficient accuracy since some of these items may be indeterminable at the time the Company provides its financial Outlook.

(2)

The Company’s definition of Adjusted Free Cash Flow does not include other important uses of cash including (1) cash used to purchase businesses or joint venture interests, or (2) any items that are classified as Cash Flows From Financing Activities on the Company’s Consolidated Statement of Cash Flows, including items such as (i) cash used to repay borrowings, (ii) distributions paid to noncontrolling interests, or (iii) payments under the Put/Call Agreement for USPI redeemable noncontrolling interests, which are recorded on the Statement of Cash Flows as the purchase of noncontrolling interests.

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Source: Tenet Healthcare Corporation