TenetQ106PreparedRemarks

Tenet Healthcare reported financial results for the first quarter of 2006 with net income of $15 million. While pricing increases helped offset revenue declines from falling volumes, particularly in commercial managed care, weak volumes continued to be a major challenge affecting profits. The company reported improvements in quality metrics and cost controls but significant cash outflows in the quarter due to unusual payments for litigation, restructuring, and 401k matching contributions. Tenet aims to boost volumes through quality initiatives to gain designations as Centers of Excellence from major health plans and consumer incentives for policyholders.