TenetSettlementPreparedRemarks

Tenet Healthcare announced a $725 million settlement with the Department of Justice concluding investigations into Medicare billing practices. This settlement allows Tenet to focus on its long-term strategy of improving quality, growing service lines, and increasing capital expenditures on facilities. Tenet also plans to sell 11 hospitals to raise $250-275 million, which will help fund the settlement. While the industry faces challenges like weak volumes and high bad debt, Tenet believes it can achieve an EBITDA margin of 11-13% within 2-3 years through volume growth, cost efficiencies, and pricing improvements across its portfolio of 55 hospitals.