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Tenet Healthcare Corp.$12.92($.15)(1.15%)

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 Tenet Reports Results for the Third Quarter Ended September 30, 2016
   Monday, October 31, 2016 4:19:03 PM ET

--Adjusted EBITDA was $570 million and Adjusted diluted earnings per share from continuing operations was $0.16.

--Same-hospital patient revenue grew 5.3% in the third quarter, driven by 1.4% growth in adjusted admissions and 3.9% growth in revenue per adjusted admission. Hospital segment Adjusted EBITDA totaled $334 million.

--Ambulatory Care segment revenue increased 9.7% on a same-facility system-wide basis in the third quarter, with cases increasing 4.0% and revenue per case increasing 5.5%. Adjusted EBITDA for the ambulatory segment was $157 million, a 28.7% increase, and representing a margin of 35.0%.

--Revenue from Conifer Health Solutions increased 14.7% in the third quarter with revenue from third parties increasing 29.9%. Conifer generated $79 million of Adjusted EBITDA in the third quarter, a 29.5% increase, and representing a margin of 19.8%.



--Net cash provided by operating activities during the first nine months of 2016 was $851 million, a $16 million improvement when compared to $835 million of cash provided by operating activities in the first nine months of 2015. Adjusted Free Cash Flow was $368 million in the first nine months of 2016, a $76 million decline when compared to $444 million in the first nine months of 2015.

--Updated 2016 Outlook, which includes net income from continuing operations of $9 million to $14 million and Adjusted EBITDA of $600 million to $650 million in the fourth quarter.

Tenet Healthcare Corporation (THC ) reported a net loss from continuing operations of $9 million in the third quarter of 2016, a $19 million improvement when compared to a $28 million net loss from continuing operations in the third quarter of 2015. Adjusted EBITDA was $570 million in the third quarter of 2016, an increase of $4 million, or 0.7 percent, compared to $566 million in the third quarter of 2015.

"Our focus on high-acuity service lines continues to drive growth in our hospitals and contributed to the 5.3% increase in same-hospital patient revenues this quarter. Adjusted EBITDA in our hospital segment increased by a similar amount after adjusting for acquisitions, divestitures and electronic health record incentives," said Trevor Fetter, chairman and chief executive officer. "Conifer and USPI delivered another outstanding quarter, and our three business segments continue to work together to enhance our long-term growth."

Hospital Operations and Other Segment

Net operating revenue in the Hospital Operations and other segment was $4.162 billion, down 0.4 percent from $4.179 billion in the third quarter of 2015 due to hospitals that have been divested since that time. On a same-hospital basis, patient revenue increased to $3.768 billion, up 5.3 percent from $3.577 billion in the third quarter of 2015. The increase was driven by a 1.4 percent increase in adjusted patient admissions and a 3.9 percent increase in net patient revenue per adjusted admission.

Adjusted EBITDA in Tenet’s hospital segment was $334 million, representing a decline of 12.8 percent as compared to $383 million in the third quarter of 2015. The decline was primarily driven by divestitures in 2015 and 2016 and an expected decrease in electronic health record incentives, and was partially offset by acquisitions in 2015. In addition, Tenet’s health plan business lowered EBITDA in the segment by approximately $5 million.

Total hospital segment selected operating expenses, defined as the sum of salaries, wages and benefits, supplies and other operating expenses, increased 3.1 percent on a per adjusted admission basis in the quarter. Approximately one-third of the increase was attributable to an increase in expense at Tenet’s health plans, which was substantially offset by an increase in health plan revenues as a result of additional covered lives in 2016.

Exchanges

Tenet’s same-hospital exchange admissions were 5,465 in the third quarter of 2016, up 16.9 percent from the third quarter of 2015. Same-hospital exchange outpatient visits were 51,015, up 32.0 percent from the third quarter of 2015.

Uncompensated Care

Tenet’s provision for doubtful accounts was $367 million in the third quarter of 2016, representing a ratio of 7.0 percent of revenues before bad debt, as compared to $371 million in the third quarter of 2015, or 7.3 percent of revenues before bad debt. Tenet’s uncompensated care costs, defined as the sum of the provision for doubtful accounts, charity care write-offs and uninsured discounts, was $1.318 billion and $1.303 billion in the third quarters of 2016 and 2015, respectively, including $951 million and $932 million, respectively, of charity care write-offs and uninsured discounts that were offered through Tenet’s Compact with Uninsured Patients. Uncompensated care represented 21.4 percent of revenue before bad debts, uninsured discounts and charity care write-offs in the third quarter of 2016, down from 21.7 percent in the third quarter of 2015. Nearly all of Tenet’s uncompensated care is associated with the Hospital Operations and other segment.

Uninsured plus charity admissions increased by 985 admissions, or 10.5 percent on a same-hospital basis in the third quarter of 2016 compared to the third quarter of 2015. Uninsured plus charity outpatient visits decreased by 3,733 visits, or 2.8 percent, on a same-hospital basis.

Ambulatory Care Segment

During the third quarter of 2016, the Ambulatory segment produced net operating revenue of $448 million, representing an increase of 36.2 percent as compared to $329 million in the third quarter of 2015. In addition, the Ambulatory segment generated Adjusted EBITDA of $157 million, up 28.7 percent from $122 million in the third quarter of 2015

The results of many of the facilities in which the Ambulatory segment has an investment are not consolidated by Tenet. 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 segment increased 9.7 percent, with cases increasing 4.0 percent and revenue per case increasing 5.5 percent.

Conifer Segment

During the third quarter of 2016, Conifer’s revenue increased 14.7 percent to $398 million, up from $347 million in the third quarter of 2015, and Conifer’s revenue from third party customers increased by 29.9 percent to $239 million. Conifer generated $79 million of Adjusted EBITDA in the third quarter of 2016, up 29.5 percent from $61 million in the third quarter of 2015. Conifer’s results for the third quarter of 2016 included $9 million of annual customer incentives. These incentives may be achieved again in future years, but will not recur at these levels in the fourth quarter of 2016.

Net Income and Earnings Per Share

Tenet reported a net loss from continuing operations of $9 million, or $0.09 per share, in the third quarter of 2016 compared to a net loss of $28 million, or $0.28 per share, in the third quarter of 2015.

After adjusting for certain items which are listed on Table #2, Tenet generated Adjusted net income from continuing operations of $16 million, or $0.16 per diluted share, during the third quarter of 2016, as compared to Adjusted net income from continuing operations of $30 million, or $0.29 per diluted share, in the third quarter of 2015.

A reconciliation of GAAP net income available (loss attributable) to Tenet Healthcare Corporation common shareholders to Adjusted net income from continuing operations and Adjusted diluted earnings per share from continuing operations is contained in Table #2 at the end of this release.

Cash Flow and Liquidity

Cash and cash equivalents were $649 million at September 30, 2016 compared to $656 million at June 30, 2016. The Company had no outstanding borrowings on its $1 billion credit line as of September 30, 2016. Accounts receivable days outstanding were 52.9 at September 30, 2016 compared to 51.1 at June 30, 2016 and 49.5 at December 31, 2015.

Net cash provided by operating activities in the nine months ended September 30, 2016 was $851 million, representing a $16 million improvement compared to $835 million in the comparable period in 2015. After subtracting $614 million and $566 million of capital expenditures in the nine months ended September 30, 2016 and September 30, 2015, respectively, Free Cash Flow was $237 million in the nine months ended September 30, 2016, representing a $32 million decline compared to $269 million in the comparable period in 2015. Adjusted Free Cash Flow was $368 million in the nine months ended September 30, 2016, representing a $76 million decline from $444 million in the comparable period in 2015.

Net cash used in investing activities was $150 million in the nine months ended September 30, 2016 compared to $1.272 billion of net cash used in investing activities in the comparable period in 2015. Net cash used in financing activities was $408 million in the nine months ended September 30, 2016 compared to $694 million of net cash provided by financing activities in the comparable period in 2015.

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 2016 includes:

-- Revenue of $19.650 billion to $19.800 billion,

-- Net loss from continuing operations ranging from a loss of $99 million to a loss of $94 million,

-- Adjusted EBITDA of $2.400 billion to $2.450 billion,

-- Net cash provided by operating activities of $1.2 billion to $1.3 billion,

-- Adjusted Free Cash Flow of $400 million to $600 million,

-- Loss per share from continuing operations ranging from a loss of $1.00 to a loss of $0.95 per basic share, and

-- Adjusted diluted earnings per share from continuing operations of $1.16 to $1.21.

The Outlook for calendar year 2016 assumes equity in earnings of unconsolidated affiliates of $120 million to $130 million, electronic health record incentives of $30 million to $35 million, net income attributable to noncontrolling interests of $340 million to $360 million (excluding an additional $19 million of noncontrolling interests recorded by USPI in the first nine months of 2016 related to gains on consolidation) and an average diluted share count of 101 million.

The Company’s Outlook for the fourth quarter of 2016 includes:

-- Revenue of $4.9 billion to $5.0 billion,

-- Net income from continuing operations of $9 million to $14 million,

-- Adjusted EBITDA of $600 million to $650 million,

-- Earnings per diluted share from continuing operations of $0.09 to $0.14, and

-- Adjusted diluted earnings per share from continuing operations of $0.17 to $0.22.

The Outlook for the fourth quarter assumes equity in earnings of unconsolidated affiliates of approximately $40 million, electronic health record incentives of approximately $10 million, net income attributable to noncontrolling interests of $94 million to $114 million and an average diluted share count of 102 million.

Additional details on Tenet’s Outlook for both the fourth quarter and calendar year 2016 are available in Tables 4 and 5 at the end of this press release and in an accompanying slide presentation that is accessible through the Company’s website at www.tenethealth.com/investors.

Management’s Webcast Discussion of Third Quarter Results

Tenet management will discuss the Company’s third quarter 2016 results on a webcast scheduled for 10:00 a.m. EDT (9:00 a.m. CDT) on November 1, 2016. Investors can access the webcast through Tenet’s website at www.tenethealth.com/investors. A set of slides, which will be referred to on the conference call, is available on the Quarterly Results section of the Company’s website.

Additional information regarding Tenet’s quarterly results of operations is contained in its Form 10-Q report for the three months ended September 30, 2016, which will be filed with the Securities and Exchange Commission and posted on the Tenet website before the webcast. This press release includes certain non-GAAP measures, such as Adjusted EBITDA, Adjusted net income from continuing operations, Adjusted diluted earnings per share from continuing operations, Free Cash Flow and Adjusted Free Cash Flow. Reconciliations of these measures to the most comparable GAAP measure are contained in the tables at the end of this release.

Tenet Healthcare Corporation is a diversified healthcare services company with 130,000 employees united around a common mission: to help people live happier, healthier lives. Through its subsidiaries, partnerships and joint ventures, including United Surgical Partners International, the Company operates 79 general acute care hospitals, 20 short-stay surgical hospitals and approximately 470 outpatient centers in the United States, as well as nine facilities in the United Kingdom. Tenet’s Conifer Health Solutions subsidiary provides technology-enabled performance improvement and health management solutions to hospitals, health systems, integrated delivery networks, physician groups, self-insured organizations and health plans. For more information, please visit www.tenethealth.com.

The terms "THC", "Tenet Healthcare Corporation", "the Company", "we", "us" or "our" refer to Tenet Healthcare Corporation or one or more of its subsidiaries or affiliates as applicable.

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," "assume," "anticipate," "intend," "plan," "believe," "seek," "see," 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, 2015, Form 10-Q for the quarterly period ended September 30, 2016 and other filings with the Securities and Exchange Commission. Among other things, these factors include adverse regulatory developments, government investigations or litigation.

Tenet uses its Company website to provide important information to investors about the Company including the posting of important announcements regarding financial performance and corporate developments.

                                                                                                                                                                                                                                   
                                                                                                                                                                 TENET HEALTHCARE CORPORATION
                                                                                                                                                             CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                          (Unaudited)
                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                          
(Dollars in millions except per share amounts)                                                                                                                                                                Three Months Ended September 30,
                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     2016                                                     %                                                        2015                                                         %                                        Change
                                                                                               -------------------------------------------------                     -------------------                     ---------------------------------------------------------                     -------------------                     ---------------------------
Net operating revenues:
      Net operating revenues before provision for doubtful accounts                                               $  5,216                                                                                                      $          5,063                                                                                     3.0 %
      Less: Provision for doubtful accounts                                                         367                                                                             371                                                                 (1.1 )%
                                                                                               -------------------- ------ --------------------                                                              -------------------- -------------- --------------------
Net operating revenues                                                                                               4,849                                                    100.0 %                                                      4,692                                                    100.0 %                          3.3 %
Equity in earnings of unconsolidated affiliates                                                                         31                                                      0.6 %                                                         28                                                      0.6 %                         10.7 %
Operating expenses:
      Salaries, wages and benefits                                                                                   2,314                                                     47.7 %                                                      2,258                                                     48.2 %                          2.5 %
      Supplies                                                                                                         767                                                     15.8 %                                                        752                                                     16.0 %                          2.0 %
      Other operating expenses, net                                                                                  1,231                                                     25.4 %                                                      1,151                                                     24.5 %                          7.0 %
      Electronic health record incentives                                                                               (2 )                                         -- %                                                         (7 )                                                   (0.1 )%                       (71.4 )%
      Depreciation and amortization                                                                                    205                                                      4.2 %                                                        185                                                      3.9 %
      Impairment and restructuring charges, and acquisition-related costs                                               31                                                      0.6 %                                                         44                                                      0.9 %
      Litigation and investigation costs                                                                                 4                                                      0.1 %                                                         50                                                      1.1 %
   Gains on sales, consolidation and deconsolidation of facilities                                   (3 )                                                   (0.1 )%                         --                        -- %
                                                                                               -------------------- ------ --------------------                                                              -------------------- -------------- --------------------
Operating income                                                                                                       333                                                      6.9 %                                                        287                                                      6.1 %
Interest expense                                                                                                      (243 )                                                                                                                (248 )
Investment earnings (losses)                                                                         (1 )                                                                                                1  
                                                                                               -------------------- ------ --------------------                                                              -------------------- -------------- --------------------
Net income from continuing operations, before income taxes                                                              89                                                                                                                    40
Income tax expense                                                                                  (10 )                                                                                              (11 )
                                                                                               -------------------- ------ --------------------                                                              -------------------- -------------- --------------------
Net income from continuing operations, before discontinued                                                              79                                                                                                                    29
operations
Discontinued operations:
   Income (loss) from operations                                                                                         2                                                                                                                    (1 )
   Income tax expense                                                                                (1 )                                                                                   --  
                                                                                               -------------------- ------ --------------------                                                              -------------------- -------------- --------------------
Net income (loss) from discontinued operations                                                        1                                                                              (1 )
                                                                                               -------------------- ------ --------------------                                                              -------------------- -------------- --------------------
Net income                                                                                                              80                                                                                                                    28
   Less: Net income attributable to noncontrolling interests                                         88                                                                              57  
                                                                                               -------------------- ------ --------------------                                                              -------------------- -------------- --------------------
Net loss attributable to Tenet Healthcare Corporation common                                                      $     (8 )                                                                                                    $            (29 )
shareholders
                                                                                               ==================== ====== ====================                                                              ==================== ============== ====================
Amounts available (attributable) to Tenet Healthcare Corporation
common shareholders
      Net loss from continuing operations, net of tax                                                             $     (9 )                                                                                                    $            (28 )
      Net income (loss) from discontinued operations, net of tax                                      1                                                                              (1 )
                                                                                               -------------------- ------ --------------------                                                              -------------------- -------------- --------------------
      Net loss attributable to Tenet Healthcare Corporation common                                                $     (8 )                                                                                                    $            (29 )
      shareholders
                                                                                               ==================== ====== ====================                                                              ==================== ============== ====================
Earnings (loss) per share available (attributable) to Tenet
Healthcare Corporation common shareholders:
   Basic
      Continuing operations                                                                                       $  (0.09 )                                                                                                    $          (0.28 )
      Discontinued operations                                                                      0.01                                                                           (0.01 )
                                                                                               -------------------- ------ --------------------                                                              -------------------- -------------- --------------------
                                                                                                                  $  (0.08 )                                                                                                    $          (0.29 )
                                                                                               ==================== ====== ====================                                                              ==================== ============== ====================
   Diluted
      Continuing operations                                                                                       $  (0.09 )                                                                                                    $          (0.28 )
      Discontinued operations                                                                      0.01                                                                           (0.01 )
                                                                                               -------------------- ------ --------------------                                                              -------------------- -------------- --------------------
                                                                                                                  $  (0.08 )                                                                                                    $          (0.29 )
                                                                                               ==================== ====== ====================                                                              ==================== ============== ====================
   Weighted average shares and dilutive securities outstanding (in
   thousands):
      Basic                                                                                                         99,523                                                                                                                99,537
      Diluted*                                                                                                      99,523                                                                                                                99,537
                                                                                                                                                                                                                                                                                                                                          
*Had we generated income from continuing operations in the three
months ended September 30, 2016 and 2015, the effect of employee
stock options, restricted stock units and deferred compensation
units on the diluted shares calculation would have been an
increase of 1,455 shares and 2,500 shares, respectively.
                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                               
                                                                                                                                                               TENET HEALTHCARE CORPORATION
                                                                                                                                                           CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                        (Unaudited)
                                                                                                                                                                                                                                                                                                                                      
(Dollars in millions except per share amounts)                                                                                                                                                              Nine Months Ended September 30,
                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      2016                                                     %                                                   2015                                                         %                                        Change
                                                                                            ---------------------------------------------------------                     ----------                     ---------------------------------------------------------                     -------------------                     ---------------------------
Net operating revenues:
   Net operating revenues before provision for doubtful accounts                                               $         15,856                                                                                             $         14,694                                                                                     7.9 %
   Less: Provision for doubtful accounts                                                               1,095                                                                  1,086                                                                  0.8 %
                                                                                            -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net operating revenues                                                                                                   14,761                                           100.0 %                                                     13,608                                                    100.0 %                          8.5 %
Equity in earnings of unconsolidated affiliates                                                                              85                                             0.6 %                                                         48                                                      0.4 %                         77.1 %
Operating expenses:
   Salaries, wages and benefits                                                                                           7,032                                            47.6 %                                                      6,568                                                     48.3 %                          7.1 %
   Supplies                                                                                                               2,351                                            15.9 %                                                      2,146                                                     15.8 %                          9.6 %
   Other operating expenses, net                                                                                          3,686                                            25.0 %                                                      3,325                                                     24.4 %                         10.9 %
   Electronic health record incentives                                                                                      (23 )                                          (0.2 )%                                                       (46 )                                                   (0.3 )%                       (50.0 )%
   Depreciation and amortization                                                                                            632                                             4.3 %                                                        589                                                      4.3 %
   Impairment and restructuring charges, and acquisition-related costs                                                       81                                             0.6 %                                                        266                                                      2.0 %
   Litigation and investigation costs                                                                                       291                                             2.0 %                                                         67                                                      0.5 %
Gains on sales, consolidation and deconsolidation of facilities                                         (151 )                                          (1.0 )%                         --                        -- %
                                                                                            -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Operating income                                                                                                            947                                             6.4 %                                                        741                                                      5.4 %
Interest expense                                                                                                           (730 )                                                                                                       (664 )
Investment earnings (losses)                                                                               2                                                         --  
                                                                                            -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net income from continuing operations, before income taxes                                                                  219                                                                                                           77
Income tax expense                                                                                       (61 )                                                                          --  
                                                                                            -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net income from continuing operations, before discontinued                                                                  158                                                                                                           77
operations
Discontinued operations:
   Loss from operations                                                                                                      (5 )                                                                                                         (1 )
   Income tax expense                                                                         --                                                         --  
                                                                                            -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net loss from discontinued operations                                                                     (5 )                                                                                      (1 )
                                                                                            -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net income                                                                                                                  153                                                                                                           76
   Less: Net income attributable to noncontrolling interests                                             266                                                                    119  
                                                                                            -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
Net loss attributable to Tenet Healthcare Corporation common                                                   $           (113 )                                                                                           $            (43 )
shareholders
                                                                                            ==================== ============== ====================                                                     ==================== ============== ====================
Amounts attributable to Tenet Healthcare Corporation common
shareholders
      Net loss from continuing operations, net of tax                                                          $           (108 )                                                                                           $            (42 )
      Net loss from discontinued operations, net of tax                                                   (5 )                                                                                      (1 )
                                                                                            -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
      Net loss attributable to Tenet Healthcare Corporation common                                             $           (113 )                                                                                           $            (43 )
      shareholders
                                                                                            ==================== ============== ====================                                                     ==================== ============== ====================
Net loss per share attributable to Tenet Healthcare Corporation
common shareholders:
   Basic
      Continuing operations                                                                                    $          (1.09 )                                                                                           $          (0.42 )
      Discontinued operations                                                                          (0.05 )                                                                                   (0.01 )
                                                                                            -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
                                                                                                               $          (1.14 )                                                                                           $          (0.43 )
                                                                                            ==================== ============== ====================                                                     ==================== ============== ====================
   Diluted
      Continuing operations                                                                                    $          (1.09 )                                                                                           $          (0.42 )
      Discontinued operations                                                                          (0.05 )                                                                                   (0.01 )
                                                                                            -------------------- -------------- --------------------                                                     -------------------- -------------- --------------------
                                                                                                               $          (1.14 )                                                                                           $          (0.43 )
                                                                                            ==================== ============== ====================                                                     ==================== ============== ====================
   Weighted average shares and dilutive securities outstanding (in
   thousands):
      Basic                                                                                                              99,210                                                                                                       99,160
      Diluted*                                                                                                           99,210                                                                                                       99,160
                                                                                                                                                                                                                                                                                                                                      
*Had we generated income from continuing operations in the nine
months ended September 30, 2016 and 2015, the effect of employee
stock options, restricted stock units and deferred compensation
units on the diluted shares calculation would have been an
increase of 1,470 shares and 2,449 shares, respectively.
                                                                                                                                                                                                                                                                                                                                      
                                                                                                                       
                                                                                         TENET HEALTHCARE CORPORATION
                                                                                          CONSOLIDATED BALANCE SHEETS
                                                                                                  (Unaudited)
                                                                                                                                                                                           
                                                                                                          September 30,                                                         December 31,
(Dollars in millions)                                                                                         2016                                                                  2015
                                                                                        -------------------------------------------------                     -------------------------------------------------
                              ASSETS
Current assets:
   Cash and cash equivalents                                                                               $    649                                                              $    356
   Accounts receivable, less allowance for doubtful accounts                                                  2,786                                                                 2,704
   Inventories of supplies, at cost                                                                             322                                                                   309
   Income tax receivable                                                                                         11                                                                     7
   Assets held for sale                                                                                          17                                                                   550
   Other current assets                                                                    1,331                           1,245  
                                                                                        -------------------- ------ --------------------                      -------------------- ------ --------------------
      Total current assets                                                                                    5,116                                                                 5,171
Investments and other assets                                                                                  1,324                                                                 1,175
Deferred income taxes                                                                                           840                                                                   776
Property and equipment, at cost, less accumulated depreciation and                                            7,965                                                                 7,915
amortization
Goodwill                                                                                                      7,376                                                                 6,970
Other intangible assets, at cost, less accumulated amortization                            1,853                           1,675  
                                                                                        -------------------- ------ --------------------                      -------------------- ------ --------------------
Total assets                                                                                               $ 24,474                                           $ 23,682  
                                                                                        ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                           
                      LIABILITIES AND EQUITY
Current liabilities:
      Current portion of long-term debt                                                                    $    184                                                              $    127
      Accounts payable                                                                                        1,228                                                                 1,380
      Accrued compensation and benefits                                                                         809                                                                   880
      Professional and general liability reserves                                                               185                                                                   177
      Accrued interest payable                                                                                  308                                                                   205
      Liabilities held for sale                                                                                  13                                                                   101
      Accrued legal settlement costs                                                                            527                                                                   294
      Other current liabilities                                                            1,293                           1,144  
                                                                                        -------------------- ------ --------------------                      -------------------- ------ --------------------
         Total current liabilities                                                                            4,547                                                                 4,308
Long-term debt, net of current portion                                                                       14,323                                                                14,383
Professional and general liability reserves                                                                     620                                                                   578
Defined benefit plan obligations                                                                                586                                                                   595
Deferred income taxes                                                                                           320                                                                    37
Other long-term liabilities                                                                  606                             557  
                                                                                        -------------------- ------ --------------------                      -------------------- ------ --------------------
         Total liabilities                                                                                   21,002                                                                20,458
Commitments and contingencies
Redeemable noncontrolling interests in equity of consolidated                                                 2,307                                                                 2,266
subsidiaries
Equity:
   Shareholders’ equity:
      Common stock                                                                                                7                                                                     7
      Additional paid-in capital                                                                              4,801                                                                 4,815
      Accumulated other comprehensive loss                                                                     (200 )                                                                (164 )
      Accumulated deficit                                                                                    (1,663 )                                                              (1,550 )
      Common stock in treasury, at cost                                                   (2,417 )                                           (2,417 )
                                                                                        -------------------- ------ --------------------                      -------------------- ------ --------------------
         Total shareholders’ equity                                                  528                                                                   691
   Noncontrolling interests                                                                  637                             267  
                                                                                        -------------------- ------ --------------------                      -------------------- ------ --------------------
         Total equity                                                                      1,165                             958  
                                                                                        -------------------- ------ --------------------                      -------------------- ------ --------------------
Total liabilities and equity                                                                               $ 24,474                                           $ 23,682  
                                                                                        ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                           
                                                                                                                                
                                                                                                  TENET HEALTHCARE CORPORATION
                                                                                              CONSOLIDATED STATEMENTS OF CASH FLOW
                                                                                                           (Unaudited)
                                                                                                                                                                                                            
                                                                                                                                                        Nine Months Ended
(Dollars in millions)                                                                                                                                     September 30,
                                                                                                 -------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       2016                                                                      2015
                                                                                                 -------------------------------------------------                     ---------------------------------------------------------
Net Income                                                                                                          $    153                                                              $             76
Adjustments to reconcile net income to net cash provided by
operating activities:
   Depreciation and amortization                                                                                         632                                                                           589
   Provision for doubtful accounts                                                                                     1,095                                                                         1,086
   Deferred income tax expense (benefit)                                                                                  32                                                                           (10 )
   Stock-based compensation expense                                                                                       51                                                                            50
   Impairment and restructuring charges, and acquisition-related costs                                                    81                                                                           266
   Litigation and investigation costs                                                                                    291                                                                            67
   Gains on sales, consolidation and deconsolidation of facilities                                                      (151 )                                                              --
   Equity in earnings of unconsolidated affiliates, net of                                                                 2                                                                           (48 )
   distributions received
   Amortization of debt discount and debt issuance costs                                                                  33                                                                            32
   Pre-tax loss from discontinued operations                                                                               5                                                                             1
   Other items, net                                                                                                       (3 )                                                                          22
Changes in cash from operating assets and liabilities:
   Accounts receivable                                                                                                (1,156 )                                                                      (1,124 )
   Inventories and other current assets                                                                                  (95 )                                                                         (62 )
   Income taxes                                                                                                           (1 )                                                                          (5 )
   Accounts payable, accrued expenses and other current liabilities                                                      (35 )                                                                          39
   Other long-term liabilities                                                                                            48                                                                            31
Payments for restructuring charges, acquisition-related costs,                                                          (132 )                                                                        (157 )
and litigation costs and settlements
Net cash provided by (used in) operating activities from                                                1                                     (18 )
discontinued operations, excluding income taxes
                                                                                                 -------------------- ------ --------------------                      -------------------- -------------- --------------------
      Net cash provided by operating activities                                                                          851                                                                           835
Cash flows from investing activities:
   Purchases of property and equipment -- continuing operations                                             (614 )                                                                        (566 )
   Purchases of businesses or joint venture interests, net of cash                                                       (96 )                                                                        (720 )
   acquired
   Proceeds from sales of facilities and other assets                                                                    573                                                                            28
   Proceeds from sales of marketable securities, long-term investments                                                    36                                                                            18
   and other assets
   Purchases of equity investments                                                                                       (37 )                                                                         (18 )
   Other long-term assets                                                                                                (15 )                                                                          (6 )
   Other items, net                                                                                     3                                      (8 )
                                                                                                 -------------------- ------ --------------------                      -------------------- -------------- --------------------
      Net cash used in investing activities                                                                             (150 )                                                                      (1,272 )
Cash flows from financing activities:
   Repayments of borrowings under credit facility                                                                     (1,195 )                                                                      (1,880 )
   Proceeds from borrowings under credit facility                                                                      1,195                                                                         1,770
   Repayments of other borrowings                                                                                       (112 )                                                                      (2,011 )
   Proceeds from other borrowings                                                                                          4                                                                         3,208
   Debt issuance costs                                                                                                    (1 )                                                                         (76 )
   Distributions paid to noncontrolling interests                                                                       (151 )                                                                         (65 )
   Proceeds from sale of noncontrolling interests                                                                         19                                                                             4
   Purchase of noncontrolling interests                                                                                 (180 )                                                                        (254 )
   Proceeds from exercise of stock options                                                                                 4                                                                            15
   Other items, net                                                                                     9                                     (17 )
                                                                                                 -------------------- ------ --------------------                      -------------------- -------------- --------------------
      Net cash provided by (used in) financing activities                                            (408 )                                                      694  
                                                                                                 -------------------- ------ --------------------                      -------------------- -------------- --------------------
Net increase in cash and cash equivalents                                                                                293                                                                           257
Cash and cash equivalents at beginning of period                                                      356                                     193  
                                                                                                 -------------------- ------ --------------------                      -------------------- -------------- --------------------
Cash and cash equivalents at end of period                                                                          $    649                                           $            450  
                                                                                                 ==================== ====== ====================                      ==================== ============== ====================
Supplemental disclosures:
   Interest paid, net of capitalized interest                                                                       $   (596 )                                                            $           (519 )
   Income tax payments, net                                                                                         $    (33 )                                                            $             (6 )
                                                                                                                                                                                                            
                                                                                                                                                                                  
                                                                                                                                                        TENET HEALTHCARE CORPORATION
                                                                                                                                      SELECTED STATISTICS - CONTINUING TOTAL HOSPITALS (1)
                                                                                                                                                                 (Unaudited)
                                                                                                                                                                                                                                                                                                                         
(Dollars in millions except per patient day, per admission, per
adjusted admission and per visit amounts)
                                                                                                            Three Months Ended September 30,                                                                                                    Nine Months Ended September 30,
                                                                                             ------------------------------------------------------------------------------------------                                -----------------------------------------------------------------------------------------------------------
                                                                                 2016                                   2015                                    Change                                     2016                                   2015                                             Change
                                                                                             ---------------                        ---------------                        --------------------                        ---------------                        ---------------                        -------------------------------------
Admissions, Patient Days and Surgeries
   Number of hospitals (at end of period)                                                               75                                     83                                      (8 )     *                                 75                                     83                                      (8 )             *
   Total admissions                                                                                194,342                                201,870                                    (3.7 )%                                 600,039                                612,111                                    (2.0 )%
   Adjusted patient admissions                                                                     345,207                                352,352                                    (2.0 )%                               1,050,839                              1,050,594                          -- %
   Paying admissions (excludes charity and uninsured)                                              183,042                                190,548                                    (3.9 )%                                 568,017                                579,304                                    (1.9 )%
   Charity and uninsured admissions                                                                 11,300                                 11,322                                    (0.2 )%                                  32,022                                 32,807                                    (2.4 )%
   Admissions through emergency department                                                         120,447                                126,050                                    (4.4 )%                                 378,786                                388,164                                    (2.4 )%
   Paying admissions as a percentage of total admissions                                              94.2 %                                 94.4 %                                  (0.2 )%    *                               94.7 %                                 94.6 %                                   0.1 %             *
   Charity and uninsured admissions as a percentage of total admissions                                5.8 %                                  5.6 %                                   0.2 %     *                                5.3 %                                  5.4 %                                  (0.1 )%            *
   Emergency department admissions as a percentage of total admissions                                62.0 %                                 62.4 %                                  (0.4 )%    *                               63.1 %                                 63.4 %                                  (0.3 )%            *
   Surgeries -- inpatient                                                               54,701                                 55,977                                    (2.3 )%                                 164,835                                164,969                                    (0.1 )%
   Surgeries -- outpatient                                                              72,646                                 73,960                                    (1.8 )%                                 225,296                                213,894                                     5.3 %
      Total surgeries                                                                              127,346                                129,937                                    (2.0 )%                                 390,131                                378,863                                     3.0 %
   Patient days -- total                                                               894,323                                927,964                                    (3.6 )%                               2,802,150                              2,833,716                                    (1.1 )%
   Adjusted patient days                                                                         1,567,894                              1,601,494                                    (2.1 )%                               4,851,535                              4,809,669                                     0.9 %
   Average length of stay (days)                                                                      4.60                                   4.60                          -- %                                     4.67                                   4.63                                     0.9 %
   Licensed beds (at end of period)                                                                 20,340                                 21,527                                    (5.5 )%                                  20,340                                 21,527                                    (5.5 )%
   Average licensed beds                                                                            20,367                                 21,122                                    (3.6 )%                                  20,757                                 20,924                                    (0.8 )%
   Utilization of licensed beds                                                                       47.7 %                                 47.8 %                                  (0.1 )%    *                               49.3 %                                 49.6 %                                  (0.3 )%            *
Outpatient Visits
   Total visits                                                                                  2,009,019                              2,076,524                                    (3.3 )%                               6,193,924                              6,134,134                                     1.0 %
   Paying visits (excludes charity and uninsured)                                                1,862,046                              1,904,467                                    (2.2 )%                               5,742,955                              5,645,246                                     1.7 %
   Charity and uninsured visits                                                                    146,973                                172,057                                   (14.6 )%                                 450,969                                488,888                                    (7.8 )%
   Emergency department visits                                                                     707,713                                747,993                                    (5.4 )%                               2,213,321                              2,232,477                                    (0.9 )%
   Paying visits as a percentage of total visits                                                      92.7 %                                 91.7 %                                   1.0 %     *                               92.7 %                                 92.0 %                                   0.7 %             *
   Charity and uninsured visits as a percentage of total visits                                        7.3 %                                  8.3 %                                  (1.0 )%    *                                7.3 %                                  8.0 %                                  (0.7 )%            *
Revenues
  Net inpatient revenues                                                                       $     2,644                            $     2,603                                     1.6 %                              $     8,013                            $     7,917                                     1.2 %
  Net outpatient revenues                                                                      $     1,417                            $     1,515                                    (6.5 )%                             $     4,391                            $     4,411                                    (0.5 )%
Revenues on a Per Admission, Per Patient Day and Per Visit Basis
   Net inpatient revenue per admission                                                         $    13,605                            $    12,894                                     5.5 %                              $    13,354                            $    12,934                                     3.2 %
   Net inpatient revenue per patient day                                                       $     2,956                            $     2,805                                     5.4 %                              $     2,860                            $     2,794                                     2.4 %
   Net outpatient revenue per visit                                                            $       705                            $       730                                    (3.4 )%                             $       709                            $       719                                    (1.4 )%
   Net patient revenue per adjusted patient admission                                          $    11,764                            $    11,688                                     0.7 %                              $    11,804                            $    11,734                                     0.6 %
   Net patient revenue per adjusted patient day                                                $     2,590                            $     2,571                                     0.7 %                              $     2,557                            $     2,563                                    (0.2 )%
Total selected operating expenses (salaries, wages and benefits,                               $    10,666                            $    10,348                                     3.1 %                              $    10,621                            $    10,315                                     3.0 %
supplies and other operating expenses) per adjusted patient admission
                                                                                                                                                                                                                                                                                                                         
Net Patient Revenues from:
   Medicare                                                                                           19.9 %                                 19.8 %                                   0.1 %     *                               20.5 %                                 20.8 %                                  (0.3 )%  *
   Medicaid                                                                                            8.4 %                                  8.8 %                                  (0.4 )%    *                                8.2 %                                  8.9 %                                  (0.7 )%  *
   Managed care                                                                                       64.0 %                                 61.1 %                                   2.9 %     *                               61.5 %                                 60.2 %                                   1.3 %   *
   Indemnity, self-pay and other                                                                       7.7 %                                 10.3 %                                  (2.6 )%    *                                9.8 %                                 10.1 %                                  (0.3 )%  *
                                                                                                                                                                                                                                                                                                                         
(1) Represents the consolidated results of Tenet’s Hospital
Operations and other segment.
* This change is the difference between the 2016 and 2015 amounts
shown
                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                        
                                                                                                                                                   TENET HEALTHCARE CORPORATION
                                                                                                                                 SELECTED STATISTICS - CONTINUING SAME HOSPITALS (1)
                                                                                                                                                            (Unaudited)
                                                                                                                                                                                                                                                                                                              
(Dollars in millions except per patient day, per admission, per
adjusted admission and per visit amounts)
                                                                                                         Three Months Ended September 30,                                                                                              Nine Months Ended September 30,
                                                                                             ------------------------------------------------------------------------------------                                ------------------------------------------------------------------------------------------------------
                                                                                2016                                 2015                                  Change                                   2016                                 2015                                           Change
                                                                                             -------------                        -------------                        ------------------                        -------------                        -------------                        ------------------------------------
Admissions, Patient Days and Surgeries
   Number of hospitals (at end of period)                                                              67                                   67                         --     *                                67                                   67                         --              *
   Total admissions                                                                               177,626                              176,885                                    0.4 %                               539,830                              541,167                                   (0.2 )%
   Adjusted patient admissions                                                                    310,253                              305,916                                    1.4 %                               935,412                              922,603                                    1.4 %
   Paying admissions (excludes charity and uninsured)                                             167,219                              167,463                                   (0.1 )%                              511,222                              513,875                                   (0.5 )%
   Charity and uninsured admissions                                                                10,407                                9,422                                   10.5 %                                28,608                               27,292                                    4.8 %
   Admissions through emergency department                                                        110,539                              110,235                                    0.3 %                               341,111                              342,302                                   (0.3 )%
   Paying admissions as a percentage of total admissions                                             94.1 %                               94.7 %                                 (0.6 )%  *                              94.7 %                               95.0 %                                 (0.3 )%           *
   Charity and uninsured admissions as a percentage of total admissions                               5.9 %                                5.3 %                                  0.6 %   *                               5.3 %                                5.0 %                                  0.3 %            *
   Emergency department admissions as a percentage of total admissions                               62.2 %                               62.3 %                                 (0.1 )%  *                              63.2 %                               63.3 %                                 (0.1 )%           *
   Surgeries -- inpatient                                                              49,608                               49,527                                    0.2 %                               147,377                              147,113                                    0.2 %
   Surgeries -- outpatient                                                             62,571                               64,985                                   (3.7 )%                              192,248                              189,886                                    1.2 %
      Total surgeries                                                                             112,179                              114,512                                   (2.0 )%                              339,625                              336,999                                    0.8 %
   Patient days -- total                                                              803,553                              804,181                                   (0.1 )%                            2,471,353                            2,482,989                                   (0.5 )%
   Adjusted patient days                                                                        1,390,214                            1,374,619                                    1.1 %                             4,241,280                            4,187,429                                    1.3 %
   Average length of stay (days)                                                                     4.52                                 4.55                                   (0.7 )%                                 4.58                                 4.59                                   (0.2 )%
   Licensed beds (at end of period)                                                                18,104                               18,201                                   (0.5 )%                               18,104                               18,201                                   (0.5 )%
   Average licensed beds                                                                           18,131                               18,233                                   (0.6 )%                               18,138                               18,240                                   (0.6 )%
   Utilization of licensed beds                                                                      48.2 %                               47.9 %                                  0.3 %   *                              49.9 %                               49.9 %                       -- %            *
Outpatient Visits
   Total visits                                                                                 1,805,800                            1,792,264                                    0.8 %                             5,491,057                            5,370,525                                    2.2 %
   Paying visits (excludes charity and uninsured)                                               1,676,686                            1,659,417                                    1.0 %                             5,112,745                            4,990,102                                    2.5 %
   Charity and uninsured visits                                                                   129,114                              132,847                                   (2.8 )%                              378,312                              380,423                                   (0.6 )%
   Emergency department visits                                                                    628,234                              624,871                                    0.5 %                             1,939,686                            1,894,201                                    2.4 %
   Paying visits as a percentage of total visits                                                     92.9 %                               92.6 %                                  0.3 %   *                              93.1 %                               92.9 %                                  0.2 %            *
   Charity and uninsured visits as a percentage of total visits                                       7.1 %                                7.4 %                                 (0.3 )%  *                               6.9 %                                7.1 %                                 (0.2 )%           *
Revenues
   Net inpatient revenues                                                                     $     2,435                          $     2,289                                    6.4 %                           $     7,334                          $     6,976                                    5.1 %
   Net outpatient revenues                                                                    $     1,333                          $     1,288                                    3.5 %                           $     4,007                          $     3,795                                    5.6 %
Revenues on a Per Admission, Per Patient Day and Per Visit Basis
   Net inpatient revenue per admission                                                        $    13,709                          $    12,941                                    5.9 %                           $    13,586                          $    12,891                                    5.4 %
   Net inpatient revenue per patient day                                                      $     3,030                          $     2,846                                    6.5 %                           $     2,968                          $     2,810                                    5.6 %
   Net outpatient revenue per visit                                                           $       738                          $       719                                    2.6 %                           $       730                          $       707                                    3.3 %
   Net patient revenue per adjusted patient admission                                         $    12,145                          $    11,693                                    3.9 %                           $    12,124                          $    11,675                                    3.8 %
   Net patient revenue per adjusted patient day                                               $     2,710                          $     2,602                                    4.2 %                           $     2,674                          $     2,572                                    4.0 %
                                                                                                                                                                                                                                                                                                              
Net Patient Revenues from:
   Medicare                                                                                          19.7 %                               20.2 %                                 (0.5 )%  *                              20.2 %                               21.0 %                                 (0.8 )%           *
   Medicaid                                                                                           8.5 %                                8.8 %                                 (0.3 )%  *                               8.3 %                                8.8 %                                 (0.5 )%           *
   Managed care                                                                                      62.1 %                               61.6 %                                  0.5 %   *                              61.8 %                               60.8 %                                  1.0 %            *
   Indemnity, self-pay and other                                                                     10.1 %                                9.3 %                                  0.8 %   *                               9.7 %                                9.4 %                                  0.3 %            *
                                                                                                                                                                                                                                                                                                              
(1) Information for our Hospital Operations and other segment is
presented on a same-hospital basis, which includes the results of
our same 67 hospitals operated throughout the nine months ended
September 30, 2016 and 2015, associated outpatient facilities and
excludes the results of eight hospitals that Tenet acquired, as
well as hospitals that Tenet divested, since January 1, 2015.
* This change is the difference between the 2016 and 2015 amounts
shown
                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                 
                                                                                                                                                                             TENET HEALTHCARE CORPORATION
                                                                                                                                                                         CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                                      (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                   
(Dollars in millions except per share amounts)                                                                                                                                           Three Months Ended                                                                                                                                       Nine Months Ended
                                                                                            -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------
                                                                                                                    3/31/2016                                                                     6/30/2016                                                                 9/30/2016                                                                 9/30/2016
                                                                                            ---------------------------------------------------------                     ---------------------------------------------------------                     -------------------------------------------------                     ---------------------------------------------------------
Net operating revenues:
   Net operating revenues before provision for doubtful accounts                                               $          5,420                                                              $          5,220                                                              $  5,216                                                              $         15,856
   Less: Provision for doubtful accounts                                                                 376                                     352                             367                                   1,095  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
Net operating revenues                                                                                                    5,044                                                                         4,868                                                                 4,849                                                                        14,761
Equity in earnings of unconsolidated affiliates                                                                              24                                                                            30                                                                    31                                                                            85
Operating expenses:
   Salaries, wages and benefits                                                                                           2,402                                                                         2,316                                                                 2,314                                                                         7,032
   Supplies                                                                                                                 811                                                                           773                                                                   767                                                                         2,351
   Other operating expenses, net                                                                                          1,242                                                                         1,213                                                                 1,231                                                                         3,686
   Electronic health record incentives                                                                           --                                                                           (21 )                                                                  (2 )                                                                         (23 )
   Depreciation and amortization                                                                                            212                                                                           215                                                                   205                                                                           632
   Impairment and restructuring charges, and acquisition-related costs                                                       28                                                                            22                                                                    31                                                                            81
   Litigation and investigation costs                                                                                       173                                                                           114                                                                     4                                                                           291
Gains on sales, consolidation and deconsolidation of facilities                                         (147 )                                                       (1 )                                               (3 )                                                     (151 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
Operating income                                                                                                            347                                                                           267                                                                   333                                                                           947
Interest expense                                                                                                           (243 )                                                                        (244 )                                                                (243 )                                                                        (730 )
Investment earnings (losses)                                                                               1                                       2                              (1 )                                                        2  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
Net income from continuing operations, before income taxes                                                                  105                                                                            25                                                                    89                                                                           219
Income tax benefit (expense)                                                                             (67 )                                                       16                             (10 )                                                      (61 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
Net income from continuing operations, before discontinued                                                                   38                                                                            41                                                                    79                                                                           158
operations
Discontinued operations:
   Income (loss) from operations                                                                                             (5 )                                                                          (2 )                                                                   2                                                                            (5 )
   Income tax benefit (expense)                                                                            1                          --                              (1 )                                           --  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
Net Income (loss) from discontinued operations                                                            (4 )                                                       (2 )                                                1                                      (5 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
Net income                                                                                                                   34                                                                            39                                                                    80                                                                           153
   Less: Net income attributable to noncontrolling interests                                              93                                      85                              88                                     266  
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
Net loss attributable to Tenet Healthcare Corporation common                                                   $            (59 )                                                            $            (46 )                                                            $     (8 )                                                            $           (113 )
shareholders
                                                                                            ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
Amounts available (attributable) to Tenet Healthcare Corporation
common shareholders
   Net loss from continuing operations, net of tax                                                             $            (55 )                                                            $            (44 )                                                            $     (9 )                                                            $           (108 )
   Net income (loss) from discontinued operations, net of tax                                             (4 )                                                       (2 )                                                1                                      (5 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
      Net loss attributable to Tenet Healthcare Corporation common                                             $            (59 )                                                            $            (46 )                                                            $     (8 )                                                            $           (113 )
      shareholders
                                                                                            ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
Earnings (loss) per share available (attributable) to Tenet
Healthcare Corporation common shareholders:
   Basic
      Continuing operations                                                                                    $          (0.56 )                                                            $          (0.44 )                                                            $  (0.09 )                                                            $          (1.09 )
      Discontinued operations                                                                          (0.04 )                                                    (0.02 )                                             0.01                                   (0.05 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                                                               $          (0.60 )                                                            $          (0.46 )                                                            $  (0.08 )                                                            $          (1.14 )
                                                                                            ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
   Diluted
      Continuing operations                                                                                    $          (0.56 )                                                            $          (0.44 )                                                            $  (0.09 )                                                            $          (1.09 )
      Discontinued operations                                                                          (0.04 )                                                    (0.02 )                                             0.01                                   (0.05 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                                                               $          (0.60 )                                                            $          (0.46 )                                                            $  (0.08 )                                                            $          (1.14 )
                                                                                            ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
   Weighted average shares and dilutive securities outstanding (in
   thousands):
      Basic                                                                                                              98,768                                                                        99,341                                                                99,523                                                                        99,210
      Diluted                                                                                                            98,768                                                                        99,341                                                                99,523                                                                        99,210
                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                     
                                                                                                             TENET HEALTHCARE CORPORATION
                                                                                           SELECTED STATISTICS - CONTINUING TOTAL HOSPITALS (1)
                                                                                                                      (Unaudited)
                                                                                                                                                                                                                                   
(Dollars in millions except per patient day, per admission, per
adjusted admission and per visit amounts)
                                                                                                                 Three Months Ended                                                                      Nine Months Ended
                                                                                             -------------------------------------------------------------------------------------                                ----------------------------------
                                                                               3/31/2016                              6/30/2016                              9/30/2016                                       9/30/2016
                                                                                             ---------------                        ---------------                        ---------------                        ----------------------------------
Admissions, Patient Days and Surgeries
   Number of hospitals (at end of period)                                                                 80                                     75                                     75                                     75
   Total admissions                                                                                  211,799                                193,898                                194,342                                600,039
   Adjusted patient admissions                                                                       362,819                                342,813                                345,207                              1,050,839
   Paying admissions (excludes charity and uninsured)                                                201,436                                183,539                                183,042                                568,017
   Charity and uninsured admissions                                                                   10,363                                 10,359                                 11,300                                 32,022
   Admissions through emergency department                                                           136,056                                122,283                                120,447                                378,786
   Paying admissions as a percentage of total admissions                                                95.1 %                                 94.7 %                                 94.2 %                                 94.7 %
   Charity and uninsured admissions as a percentage of total admissions                                  4.9 %                                  5.3 %                                  5.8 %                                  5.3 %
   Emergency department admissions as a percentage of total admissions                                  64.2 %                                 63.1 %                                 62.0 %                                 63.1 %
   Surgeries -- inpatient                                                                 55,755                                 54,379                                 54,701                                164,835
   Surgeries -- outpatient                                                                76,829                                 75,821                                 72,646                                225,296
   Total surgeries                                                                                   132,584                                130,201                                127,346                                390,131
   Patient days -- total                                                               1,010,514                                897,313                                894,323                              2,802,150
   Adjusted patient days                                                                           1,714,369                              1,569,272                              1,567,894                              4,851,535
   Average length of stay (days)                                                                        4.77                                   4.63                                   4.60                                   4.67
   Licensed beds (at end of period)                                                                   21,529                                 20,380                                 20,340                                 20,340
   Average licensed beds                                                                              21,524                                 20,380                                 20,367                                 20,757
   Utilization of licensed beds                                                                         51.6 %                                 48.4 %                                 47.7 %                                 49.3 %
Outpatient Visits
   Total visits                                                                                    2,146,618                              2,038,287                              2,009,019                              6,193,924
   Paying visits (excludes charity and uninsured)                                                  1,984,515                              1,896,394                              1,862,046                              5,742,955
   Charity and uninsured visits                                                                      162,103                                141,893                                146,973                                450,969
   Emergency department visits                                                                       789,916                                715,692                                707,713                              2,213,321
   Paying visits as a percentage of total visits                                                        92.4 %                                 93.0 %                                 92.7 %                                 92.7 %
   Charity and uninsured visits as a percentage of total visits                                          7.6 %                                  7.0 %                                  7.3 %                                  7.3 %
Revenues
   Net inpatient revenues                                                                        $     2,781                            $     2,588                            $     2,644                            $     8,013
   Net outpatient revenues                                                                       $     1,514                            $     1,460                            $     1,417                            $     4,391
Revenues on a Per Admission, Per Patient Day and Per Visit Basis
   Net inpatient revenue per admission                                                           $    13,130                            $    13,347                            $    13,605                            $    13,354
   Net inpatient revenue per patient day                                                         $     2,752                            $     2,884                            $     2,956                            $     2,860
   Net outpatient revenue per visit                                                              $       705                            $       716                            $       705                            $       709
   Net patient revenue per adjusted patient admission                                            $    11,838                            $    11,808                            $    11,764                            $    11,804
   Net patient revenue per adjusted patient day                                                  $     2,505                            $     2,580                            $     2,590                            $     2,557
Total selected operating expenses (salaries, wages and benefits,                                 $    10,537                            $    10,668                            $    10,666                            $    10,621
supplies and other operating expenses) per adjusted patient admission
                                                                                                                                                                                                                                   
Net Patient Revenues from:
   Medicare                                                                                             20.0 %                                 21.7 %                                 19.9 %                                 20.5 %
   Medicaid                                                                                              8.7 %                                  7.4 %                                  8.4 %                                  8.2 %
   Managed care                                                                                         61.1 %                                 59.4 %                                 64.0 %                                 61.5 %
   Indemnity, self-pay and other                                                                        10.2 %                                 11.5 %                                  7.7 %                                  9.8 %
                                                                                                                                                                                                                                   
(1) Represents the consolidated results of Tenet’s Hospital
Operations and other segment.
                                                                                                                                                                                                                                   
                                                                                                                                     
                                                                                                             TENET HEALTHCARE CORPORATION
                                                                                           SELECTED STATISTICS - CONTINUING SAME HOSPITALS (1)
                                                                                                                      (Unaudited)
                                                                                                                                                                                                                                   
(Dollars in millions except per patient day, per admission, per
adjusted admission and per visit amounts)
                                                                                                                 Three Months Ended                                                                      Nine Months Ended
                                                                                             -------------------------------------------------------------------------------------                                ----------------------------------
                                                                               3/31/2016                              6/30/2016                              9/30/2016                                       9/30/2016
                                                                                             ---------------                        ---------------                        ---------------                        ----------------------------------
Admissions, Patient Days and Surgeries
   Number of hospitals (at end of period)                                                                 67                                     67                                     67                                     67
   Total admissions                                                                                  185,053                                177,151                                177,626                                539,830
   Adjusted patient admissions                                                                       315,787                                309,372                                310,253                                935,412
   Paying admissions (excludes charity and uninsured)                                                176,286                                167,717                                167,219                                511,222
   Charity and uninsured admissions                                                                    8,767                                  9,434                                 10,407                                 28,608
   Admissions through emergency department                                                           118,578                                111,994                                110,539                                341,111
   Paying admissions as a percentage of total admissions                                                95.3 %                                 94.7 %                                 94.1 %                                 94.7 %
   Charity and uninsured admissions as a percentage of total admissions                                  4.7 %                                  5.3 %                                  5.9 %                                  5.3 %
   Emergency department admissions as a percentage of total admissions                                  64.1 %                                 63.2 %                                 62.2 %                                 63.2 %
   Surgeries -- inpatient                                                                 48,547                                 49,222                                 49,608                                147,377
   Surgeries -- outpatient                                                                63,999                                 65,678                                 62,571                                192,248
   Total surgeries                                                                                   112,546                                114,900                                112,179                                339,625
   Patient days -- total                                                                 862,138                                805,662                                803,553                              2,471,353
   Adjusted patient days                                                                           1,456,580                              1,394,486                              1,390,214                              4,241,280
   Average length of stay (days)                                                                        4.66                                   4.55                                   4.52                                   4.58
   Licensed beds (at end of period)                                                                   18,144                                 18,144                                 18,104                                 18,104
   Average licensed beds                                                                              18,139                                 18,144                                 18,131                                 18,138
   Utilization of licensed beds                                                                         52.8 %                                 48.8 %                                 48.2 %                                 49.9 %
Outpatient Visits
   Total visits                                                                                    1,854,735                              1,830,522                              1,805,800                              5,491,057
   Paying visits (excludes charity and uninsured)                                                  1,728,684                              1,707,375                              1,676,686                              5,112,745
   Charity and uninsured visits                                                                      126,051                                123,147                                129,114                                378,312
   Emergency department visits                                                                       670,678                                640,774                                628,234                              1,939,686
   Paying visits as a percentage of total visits                                                        93.2 %                                 93.3 %                                 92.9 %                                 93.1 %
   Charity and uninsured visits as a percentage of total visits                                          6.8 %                                  6.7 %                                  7.1 %                                  6.9 %
Revenues
   Net inpatient revenues                                                                        $     2,499                            $     2,400                            $     2,435                            $     7,334
   Net outpatient revenues                                                                       $     1,331                            $     1,343                            $     1,333                            $     4,007
Revenues on a Per Admission, Per Patient Day and Per Visit Basis
   Net inpatient revenue per admission                                                           $    13,504                            $    13,548                            $    13,709                            $    13,586
   Net inpatient revenue per patient day                                                         $     2,899                            $     2,979                            $     3,030                            $     2,968
   Net outpatient revenue per visit                                                              $       718                            $       734                            $       738                            $       730
   Net patient revenue per adjusted patient admission                                            $    12,128                            $    12,099                            $    12,145                            $    12,124
   Net patient revenue per adjusted patient day                                                  $     2,629                            $     2,684                            $     2,710                            $     2,674
                                                                                                                                                                                                                                   
Net Patient Revenues from:
   Medicare                                                                                             20.6 %                                 20.1 %                                 19.7 %                                 20.2 %
   Medicaid                                                                                              8.5 %                                  7.8 %                                  8.5 %                                  8.3 %
   Managed care                                                                                         61.5 %                                 62.1 %                                 61.7 %                                 61.8 %
   Indemnity, self-pay and other                                                                         9.4 %                                 10.0 %                                 10.1 %                                  9.7 %
                                                                                                                                                                                                                                   
(1) Information for our Hospital Operations and other segment is
presented on a same-hospital basis, which includes the results of
our same 67 hospitals operated throughout the nine months ended
September 30, 2016 and 2015, associated outpatient facilities and
excludes the results of eight hospitals that Tenet acquired, as
well as hospitals that Tenet divested, since January 1, 2015.
                                                                                                                                                                                                                                   
                                                                                                                                                                 
                                                                                                                                    TENET HEALTHCARE CORPORATION
                                                                                                                  SELECTED STATISTICS - CONTINUING SAME HOSPITALS (1)
                                                                                                                                             (Unaudited)
                                                                                                                                                                                                                                                                                 
(Dollars in millions except per patient day, per admission, per
adjusted admission and per visit amounts)
                                                                                                                                        Three Months Ended                                                                                                 Year Ended
                                                                                             --------------------------------------------------------------------------------------------------------------------------------                                    ---------------------------------
                                                                                03/31/15                                 06/30/15                                 9/30/2015                               12/31/2015                                       12/31/2015
                                                                                             -----------------                        -----------------                        -----------------                        -----------------                        ---------------------------------
Admissions, Patient Days and Surgeries
   Number of hospitals (at end of period)                                                                67                                       67                                       67                                       67                                       67
   Total admissions                                                                                 185,147                                  179,135                                  176,885                                  176,051                                  717,218
   Adjusted patient admissions                                                                      308,729                                  307,958                                  305,916                                  305,436                                1,228,039
   Paying admissions (excludes charity and uninsured)                                               176,023                                  170,389                                  167,463                                  166,962                                  680,837
   Charity and uninsured admissions                                                                   9,124                                    8,746                                    9,422                                    9,089                                   36,381
   Admissions through emergency department                                                          118,326                                  113,741                                  110,235                                  110,291                                  452,593
   Paying admissions as a percentage of total admissions                                               95.1 %                                   95.1 %                                   94.7 %                                   94.8 %                                   94.9 %
   Charity and uninsured admissions as a percentage of total admissions                                 4.9 %                                    4.9 %                                    5.3 %                                    5.2 %                                    5.1 %
   Emergency department admissions as a percentage of total admissions                                 63.9 %                                   63.5 %                                   62.3 %                                   62.6 %                                   63.1 %
   Surgeries -- inpatient                                                                48,295                                   49,291                                   49,527                                   49,239                                  196,352
   Surgeries -- outpatient                                                               60,494                                   64,407                                   64,985                                   65,046                                  254,932
      Total surgeries                                                                               108,789                                  113,698                                  114,512                                  114,285                                  451,284
   Patient days -- total                                                                860,927                                  817,881                                  804,181                                  803,037                                3,286,026
   Adjusted patient days                                                                          1,421,505                                1,391,305                                1,374,619                                1,379,612                                5,567,041
   Average length of stay (days)                                                                       4.65                                     4.57                                     4.55                                     4.56                                     4.58
   Licensed beds (at end of period)                                                                  18,244                                   18,244                                   18,201                                   18,130                                   18,130
   Average licensed beds                                                                             18,241                                   18,244                                   18,233                                   18,154                                   18,217
   Utilization of licensed beds                                                                        52.4 %                                   49.3 %                                   47.9 %                                   48.1 %                                   49.4 %
Outpatient Visits
   Total visits                                                                                   1,762,868                                1,815,393                                1,792,264                                1,806,125                                7,176,650
   Paying visits (excludes charity and uninsured)                                                 1,639,131                                1,691,554                                1,659,417                                1,680,609                                6,670,711
   Charity and uninsured visits                                                                     123,737                                  123,839                                  132,847                                  125,516                                  505,939
   Emergency department visits                                                                      636,860                                  632,470                                  624,871                                  626,280                                2,520,481
   Paying visits as a percentage of total visits                                                       93.0 %                                   93.2 %                                   92.6 %                                   93.1 %                                   93.0 %
   Charity and uninsured visits as a percentage of total visits                                         7.0 %                                    6.8 %                                    7.4 %                                    6.9 %                                    7.0 %
Revenues
   Net inpatient revenues                                                                       $     2,382                              $     2,305                              $     2,289                              $     2,358                              $     9,334
   Net outpatient revenues                                                                      $     1,226                              $     1,281                              $     1,288                              $     1,308                              $     5,103
Revenues on a Per Admission, Per Patient Day and Per Visit Basis
   Net inpatient revenue per admission                                                          $    12,865                              $    12,867                              $    12,941                              $    13,394                              $    13,014
   Net inpatient revenue per patient day                                                        $     2,767                              $     2,818                              $     2,846                              $     2,936                              $     2,841
   Net outpatient revenue per visit                                                             $       695                              $       706                              $       719                              $       724                              $       711
   Net patient revenue per adjusted patient admission                                           $    11,687                              $    11,644                              $    11,693                              $    12,003                              $    11,756
   Net patient revenue per adjusted patient day                                                 $     2,538                              $     2,577                              $     2,602                              $     2,657                              $     2,593
                                                                                                                                                                                                                                                                                 
Net Patient Revenues from:
   Medicare                                                                                            21.9 %                                   20.7 %                                   20.2 %                                   19.9 %                                   20.7 %
   Medicaid                                                                                             9.4 %                                    8.3 %                                    8.8 %                                    8.3 %                                    8.7 %
   Managed care                                                                                        59.1 %                                   61.6 %                                   61.7 %                                   61.8 %                                   61.1 %
   Indemnity, self-pay and other                                                                        9.6 %                                    9.4 %                                    9.3 %                                   10.0 %                                    9.5 %
                                                                                                                                                                                                                                                                                 
(1) Information for our Hospital Operations and other segment is
presented on a same-hospital basis, which includes the results of
our same 67 hospitals operated throughout the nine months ended
September 30, 2016 and 2015, associated outpatient facilities and
excludes the results of eight hospitals that Tenet acquired, as
well as hospitals that Tenet divested, since January 1, 2015.
                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                         
                                                                                                                                                     TENET HEALTHCARE CORPORATION
                                                                                                                                                           SEGMENT REPORTING
                                                                                                                                                              (Unaudited)
                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                  September 30,                                                         December 31,
                                                                                                                                                                                                                                      2016                                                                  2015
                                                                                                                                                                                                                -------------------------------------------------                     -------------------------------------------------
Assets
   Hospital Operations and other                                                                                                                                                                                                   $ 17,627                                                              $ 17,353
   Ambulatory Care                                                                                                                                                                                                                    5,729                                                                 5,159
   Conifer                                                                                                                                                                                                         1,118                           1,170  
                                                                                                                                                                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
   Total                                                                                                                                                                                                                           $ 24,474                                           $ 23,682  
                                                                                                                                                                                                                ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                   
                                                                                                                       Three Months Ended                                                                                                                          Nine Months Ended
                                                                                                                          September 30,                                                                                                                              September 30,
                                                                      ---------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
                                                                                            2016                                                                 2015                                                                 2016                                                                  2015
                                                                      ------------------------------------------------                     ------------------------------------------------                     -------------------------------------------------                     -------------------------------------------------
Capital expenditures:
   Hospital Operations and other                                                         $   182                                                              $   194                                                              $    557                                                              $    536
   Ambulatory Care                                                                            14                                                                    7                                                                    42                                                                    14
   Conifer                                                                  5                              6                              15                              16  
                                                                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
   Total                                                                                 $   201                                           $   207                                           $    614                                           $    566  
                                                                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                   
Net operating revenues:
   Hospital Operations and other                                                         $ 4,162                                                              $ 4,179                                                              $ 12,761                                                              $ 12,505
   Ambulatory Care                                                                           448                                                                  329                                                                 1,319                                                                   562
   Conifer
      Tenet                                                                                  159                                                                  163                                                                   488                                                                   488
      Other customers                                                     239                            184                             681                             541  
                                                                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
      Total Conifer revenues                                              398                            347                           1,169                           1,029  
                                                                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
   Intercompany eliminations                                             (159 )                                            (163 )                                             (488 )                                             (488 )
                                                                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
   Total                                                                                 $ 4,849                                           $ 4,692                                           $ 14,761                                           $ 13,608  
                                                                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                   
Equity in earnings of unconsolidated affiliates:
   Hospital Operations and other                                                         $     3                                                              $    (2 )                                                            $      6                                                              $     12
   Ambulatory Care                                                         28                             30                              79                              36  
                                                                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
   Total                                                                                 $    31                                           $    28                                           $     85                                           $     48  
                                                                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                   
Adjusted EBITDA:
   Hospital Operations and other                                                         $   334                                                              $   383                                                              $  1,163                                                              $  1,259
   Ambulatory Care                                                                           157                                                                  122                                                                   432                                                                   200
   Conifer                                                                 79                             61                             205                             204  
                                                                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
   Total                                                                                 $   570                                           $   566                                           $  1,800                                           $  1,663  
                                                                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                   
Depreciation and amortization:
   Hospital Operations and other                                                         $   170                                                              $   156                                                              $    525                                                              $    525
   Ambulatory Care                                                                            22                                                                   17                                                                    69                                                                    28
   Conifer                                                                 13                             12                              38                              36  
                                                                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
   Total                                                                                 $   205                                           $   185                                           $    632                                           $    589  
                                                                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                         
                                                                                                                                                                                 TENET HEALTHCARE CORPORATION
                                                                                                                                                                STATEMENT OF OPERATIONS - AMBULATORY CARE SEGMENT
                                                                                                                                                                                          (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                           
(Dollars in millions)                                                                                                                                                                                                        Three Months Ended September 30,
                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                             2016                                                                                                                                                        2015
                                                                                            ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Ambulatory Care as Reported Under GAAP                                               Unconsolidated Affiliates                                              Ambulatory Care as Reported Under GAAP                                               Unconsolidated Affiliates
                                                                                            ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Net operating revenues:
   Net operating revenues before provision for doubtful accounts                                               $            457                                                              $            507                                                              $            335                                                              $            556
   Less: Provision for doubtful accounts                                                                  (9 )                                                      (13 )                                                       (6 )                                                      (14 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net operating revenues(1)                                                                                                   448                                                                           494                                                                           329                                                                           542
Equity in earnings of unconsolidated affiliates(2)                                                                           28                                                                --                                                                            30                                                                --
Operating expenses:
   Salaries, wages and benefits                                                                                             144                                                                           119                                                                           106                                                                           132
   Supplies                                                                                                                  89                                                                           124                                                                            64                                                                           138
   Other operating expenses, net                                                                                             86                                                                            99                                                                            67                                                                           117
   Depreciation and amortization                                                                                             22                                                                            16                                                                            17                                                                            20
   Impairment and restructuring charges, and acquisition-related costs                                                        5                                                                --                                                                             2                                                                --
   (Gains) loss on sales, consolidation and deconsolidation of                                            (3 )                                                        3                          --                          --  
   facilities
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Operating income                                                                                                            133                                                                           133                                                                           103                                                                           135
Interest expense                                                                                                            (35 )                                                                          (6 )                                                                         (34 )                                                                          (7 )
Other                                                                                         --                                       5                          --                                      (2 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income from continuing operations, before income taxes                                                                   98                                                                           132                                                                            69                                                                           126
Income tax expense                                                                                       (18 )                                                       (2 )                                                      (14 )                                                       (2 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income                                                                                                     $             80                                                              $            130                                           $             55                                                              $            124  
                                                                                                                                                                          ==================== ============== ====================                                                                                                    ==================== ============== ====================
                                                                                                          69                                                                                                                    51  
   Less: Net income attributable to noncontrolling interests(3)
                                                                                            -------------------- -------------- --------------------                                                                                                    -------------------- -------------- --------------------
Net income attributable to Tenet Healthcare Corporation common                                                 $             11                                                                                                                         $              4  
shareholders
                                                                                            ==================== ============== ====================                                                                                                    ==================== ============== ====================
Equity in earnings of unconsolidated affiliates                                                                                                                                              $             28                                                                                                                                            $             30
                                                                                                                                                                                                                                                                                                                                                                           
(1) On a same-facility system-wide basis, net revenue in Tenet’s
Ambulatory Care segment increased 9.7% during the three months
ended September 30, 2016, with cases increasing 4.0% and revenue
per case increasing 5.5%.
(2) At September 30, 2016, 114 of the 330 facilities in the
Company’s newly formed 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 212 facilities and account for these investments as
consolidated subsidiaries.
(3) During the three months ended September 30, 2016, the Company
recorded $1 million of noncontrolling interests expense related to
a $3 million gain on the consolidation of facilities (the gain is
not included in Adjusted EBITDA).
                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                         
                                                                                                                                                                                 TENET HEALTHCARE CORPORATION
                                                                                                                                                                STATEMENT OF OPERATIONS - AMBULATORY CARE SEGMENT
                                                                                                                                                                      INCLUDING PRO FORMA USPI AND ASPEN FOR ALL PERIODS
                                                                                                                                                                                          (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                              Nine Months Ended September 30,
                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                             2016                                                                                                                                                        2015
                                                                                            ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Ambulatory Care as Reported Under GAAP                                               Unconsolidated Affiliates                                              Ambulatory Care as Reported Under GAAP                                               Unconsolidated Affiliates
                                                                                            ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Net operating revenues:
   Net operating revenues before provision for doubtful accounts                                               $          1,346                                                              $          1,491                                                              $            962                                                              $          1,576
   Less: Provision for doubtful accounts                                                                 (27 )                                                      (41 )                                                      (16 )                                                      (40 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net operating revenues(1)                                                                                                 1,319                                                                         1,450                                                                           946                                                                         1,536
Equity in earnings of unconsolidated affiliates(2)                                                                           79                                                                --                                                                            79                                                                --
Operating expenses:
   Salaries, wages and benefits                                                                                             437                                                                           353                                                                           308                                                                           379
   Supplies                                                                                                                 266                                                                           375                                                                           174                                                                           394
   Other operating expenses, net                                                                                            263                                                                           303                                                                           212                                                                           337
   Depreciation and amortization                                                                                             69                                                                            51                                                                            46                                                                            60
   Impairment and restructuring charges, and acquisition-related costs                                                        9                                                                             1                                                                             2                                                                             3
   (Gains) loss on sales, consolidation and deconsolidation of                                           (33 )                                                        3                          --                          --  
   facilities
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Operating income                                                                                                            387                                                                           364                                                                           283                                                                           363
Interest expense                                                                                                           (105 )                                                                         (18 )                                                                        (102 )                                                                         (21 )
Other                                                                                         --                                       6                          --                                      (2 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income from continuing operations, before income taxes                                                                  282                                                                           352                                                                           181                                                                           340
Income tax expense                                                                                       (37 )                                                       (5 )                                                      (36 )                                                       (5 )
                                                                                            -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net Income                                                                                                     $            245                                                              $            347                                           $            145                                                              $            335  
                                                                                                                                                                          ==================== ============== ====================                                                                                                    ==================== ============== ====================
   Less: Net income attributable to noncontrolling interests(3)                                          204                                                                                                                   126  
                                                                                            -------------------- -------------- --------------------                                                                                                    -------------------- -------------- --------------------
Net income attributable to Tenet Healthcare Corporation common                                                 $             41                                                                                                                         $             19  
shareholders
                                                                                            ==================== ============== ====================                                                                                                    ==================== ============== ====================
Equity in earnings of unconsolidated affiliates                                                                                                                                              $             79                                                                                                                                            $             79
                                                                                                                                                                                                                                                                                                                                                                           
(1) On a same-facility system-wide basis, net revenue in Tenet’s
Ambulatory Care segment increased 10.9% during the nine months
ended September 30, 2016, with cases increasing 6.0% and revenue
per case increasing 4.6%.
(2) At September 30, 2016, 114 of the 330 facilities in the
Company’s newly formed 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 212 facilities and account for these investments as
consolidated subsidiaries.
(3) During the nine months ended September 30, 2016, the Company
recorded $19 million of noncontrolling interests expense related
to a $33 million gain on the consolidation of facilities (the gain
is not included in Adjusted EBITDA) and an associated $7 million
income tax benefit.
                                                                                                                                                                                                                                                                                                                                                                           

Non-GAAP Financial Measures

Adjusted EBITDA, a non-GAAP measure, is defined by the Company as net income (loss) attributable to Tenet Healthcare Corporation common shareholders before (1) the cumulative effect of changes in accounting principle, (2) net loss (income) attributable to noncontrolling interests, (3) income (loss) from discontinued operations, (4) income tax benefit (expense), (5) investment earnings (losses), (6) gain (loss) from early extinguishment of debt, (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, and (11) depreciation and amortization. Litigation and investigation costs do not include ordinary course of business malpractice and other litigation and related expense.

Adjusted net income from continuing operations, a non-GAAP measure, is defined by the Company as net income (loss) attributable to Tenet Healthcare Corporation common shareholders before (1) impairment and restructuring charges, and acquisition-related costs, (2) litigation and investigation costs, (3) gains on sales, consolidation and deconsolidation of facilities, (4) the associated impact of these three items on taxes and noncontrolling interests, and (5) net income (loss) from discontinued operations. Adjusted diluted earnings per share from continuing operations, a non-GAAP term, is defined by the Company as Adjusted net income from continuing operations divided by the weighted average 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 account for 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 Adjusted EBITDA to net income (loss) attributable to Tenet Healthcare Corporation common shareholders, the most comparable GAAP measure, is set forth in Table #1 below for the three and nine months ended September 30, 2016 and 2015. A reconciliation of Adjusted net income from continuing operations to net income (loss) attributable to Tenet Healthcare Corporation common shareholders, the most comparable GAAP measure, is set forth in Table #2 below for the three and nine months ended September 30, 2016 and 2015. A reconciliation of Free Cash Flow and Adjusted Free Cash Flow to net cash provided by (used in) operating activities, the most comparable GAAP measure, is set forth in Table #3 below for the three and nine months ended September 30, 2016 and 2015.

                                                                                                                                                                                                                                        
                                                                                                                                                                         TENET HEALTHCARE CORPORATION
                                                                                                                                                                 Additional Supplemental Non-GAAP disclosures
                                                                                                                                                    Table #1 - Reconciliation of Adjusted EBITDA to Net Income
                                                                                                                                                                                   Available
                                                                                                                                                          (Loss Attributable) to Tenet Healthcare Corporation Common
                                                                                                                                                                                 Shareholders
                                                                                                                                                                                  (Unaudited)
                                                                                                                                                                                                                                                                                                                                                          
(Dollars in millions)                                                                                                                             Three Months Ended                                                                                                                                  Nine Months Ended
                                                                                                                                                     September 30,                                                                                                                                      September 30,
                                                                                            ------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  2016                                                                     2015                                                                      2016                                                                      2015
                                                                                            ------------------------------------------------                     ---------------------------------------------------------                     -------------------------------------------------                     ---------------------------------------------------------
Net loss attributable to Tenet Healthcare Corporation common                                                   $    (8 )                                                            $            (29 )                                                            $   (113 )                                                            $            (43 )
shareholders
Less: Net income attributable to noncontrolling interests                                                          (88 )                                                                         (57 )                                                                (266 )                                                                        (119 )
      Net income (loss) from discontinued operations, net of tax                                  1                                      (1 )                                               (5 )                                                       (1 )
                                                                                            -------------------- ----- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
      Net income (loss) from continuing operations                                                                  79                                                                            29                                                                   158                                                                            77
   Income tax benefit (expense)                                                                                    (10 )                                                                         (11 )                                                                 (61 )                                                              --
   Investment earnings (losses)                                                                                     (1 )                                                                           1                                                                     2                                                                --
   Interest expense                                                                            (243 )                                                     (248 )                                             (730 )                                                     (664 )
                                                                                            -------------------- ----- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
      Operating income                                                                                             333                                                                           287                                                                   947                                                                           741
   Litigation and investigation costs                                                                               (4 )                                                                         (50 )                                                                (291 )                                                                         (67 )
   Gains on sales, consolidation and deconsolidation of facilities                                                   3                                                                --                                                                   151                                                                --
   Impairment and restructuring charges, and acquisition-related costs                                             (31 )                                                                         (44 )                                                                 (81 )                                                                        (266 )
   Depreciation and amortization                                                               (205 )                                                     (185 )                                             (632 )                                                     (589 )
                                                                                            -------------------- ----- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
Adjusted EBITDA                                                                                                $   570                                           $            566                                           $  1,800                                           $          1,663  
                                                                                            ==================== ===== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                          
Net operating revenues                                                                                         $ 4,849                                           $          4,692                                           $ 14,761                                           $         13,608  
                                                                                            ==================== ===== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                          
Net loss from continuing operations as a % of operating revenues                                                  (0.2 )%                                                                       (0.6 )%                                                               (0.7 )%                                                                       (0.3 )%
                                                                                                                                                                                                                                                                                                                                                          
Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA                                                   11.8 %                                                                        12.1 %                                                                12.2 %                                                                        12.2 %
margin)
                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                        
                                                                                                                                                                         TENET HEALTHCARE CORPORATION
                                                                                                                                                                 Additional Supplemental Non-GAAP disclosures
                                                                                                                                                  Table #2 - Pre-Tax, After-Tax and Earnings Per Share Impact of
                                                                                                                                                                    Certain Items on Continuing Operations
                                                                                                                                                                                  (Unaudited)
                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                Three Months Ended                                                                                                                                    Nine Months Ended
(Dollars in millions except per share amounts)                                                                                                     September 30,                                                                                                                                        September 30,
                                                                                         --------------------------------------------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------------------------------------
                                                                                                                2016                                                                      2015                                                                       2016                                                                      2015
                                                                                         --------------------------------------------------                     ---------------------------------------------------------                     --------------------------------------------------                     ---------------------------------------------------------
Adjustments to calculate Adjusted Diluted EPS                                                                                                                                                                              (Expense) Income
Impairment and restructuring charges, and acquisition-related costs                                         $     (31 )                                                            $            (44 )                                                            $     (81 )                                                            $           (266 )
Litigation and investigation costs                                                                                 (4 )                                                                         (50 )                                                                 (291 )                                                                         (67 )
Gain on sales, consolidation and deconsolidation of facilities                                   3                          --                              151                          --  
                                                                                         -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
Pre-tax impact                                                                                              $     (32 )                                                            $            (94 )                                                            $    (221 )                                                            $           (333 )
                                                                                         -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
Tax impact of above items                                                                                   $       8                                           $             36                                           $      33                                           $            118  
                                                                                         -------------------- ------- --------------------                      -------------------- -------------- --------------------                                           ------- --------------------                      -------------------- -------------- --------------------
Total after-tax impact                                                                                      $     (24 )                                                            $            (58 )                                                            $    (188 )                                                            $           (215 )
Noncontrolling interests impact                                                                 (1 )                                           --                                                 (19 )                                                              --  
                                                                                         -------------------- ------- --------------------                      -------------------- -------------- --------------------                                           ------- --------------------                                           -------------- --------------------
Total income (loss) from items above                                                                        $     (25 )                                                            $            (58 )                                                            $    (207 )                                                            $           (215 )
                                                                                         ==================== ======= ====================                      ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                          
Net income available (loss attributable) to common shareholders                                             $      (8 )                                                            $            (29 )                                                            $    (113 )                                                            $            (43 )
Less net income (loss) discontinued operations, net of tax                                       1                                      (1 )                                                (5 )                                                       (1 )
                                                                                         -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
Net income (loss) from continuing operations, net of tax                                                    $      (9 )                                                            $            (28 )                                                            $    (108 )                                                            $            (42 )
Net loss (income) from adjustments above                                                        25                                      58                              207                                     215  
                                                                                         -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
Adjusted net income (loss) from continuing operations                                                       $      16                                           $             30                                           $      99                                           $            173  
                                                                                         ==================== ======= ====================                      ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                          
Weighted average dilutive shares outstanding (in thousands)                                                   100,978                                                                       102,037                                                                100,680                                                                       101,609
Diluted earnings per share from continuing operations                                                       $   (0.09 )                                                            $          (0.28 )                                                            $   (1.09 )                                                            $          (0.42 )
Adjusted diluted EPS from continuing operations                                                             $    0.16                                                              $           0.29                                                              $    0.98                                                              $           1.70
                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                 
                                                                                                                                                                 TENET HEALTHCARE CORPORATION
                                                                                                                                                         Additional Supplemental Non-GAAP disclosures
                                                                                                                                          Table #3 - Reconciliations of Free Cash Flow and Adjusted Free
                                                                                                                                                                           Cash Flow
                                                                                                                                                                          (Unaudited)
                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                  Three Months Ended                                                                                                                        Nine Months Ended
(Dollars in millions)                                                                                                                                September 30,                                                                                                                            September 30,
                                                                                                  -------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------
                                                                                                                       2016                                                                2015                                                                2016                                                                 2015
                                                                                                  -----------------------------------------------                     -----------------------------------------------                     -----------------------------------------------                     -------------------------------------------------
Net cash provided by (used in) operating activities                                                                  $  269                                                              $  482                                                              $  851                                                              $    835
   Purchases of property and equipment                                                              (201 )                                           (207 )                                           (614 )                                             (566 )
                                                                                                  -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ------ --------------------
Free cash flow                                                                                                       $   68                                           $  275                                           $  237                                           $    269  
                                                                                                  ==================== ==== ====================                      ==================== ==== ====================                      ==================== ==== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                           
Net cash provided by (used in) investing activities                                                                  $ (204 )                                                            $ (287 )                                                            $ (150 )                                                            $ (1,272 )
Net cash provided by (used in) financing activities                                                                  $  (72 )                                                            $  (44 )                                                            $ (408 )                                                            $    694
                                                                                                                                                                                                                                                                                                                                           
Net cash provided by (used in) operating activities                                                                  $  269                                                              $  482                                                              $  851                                                              $    835
Less:
   Payments for restructuring charges, acquisition-related costs, and                                                   (33 )                                                               (71 )                                                              (132 )                                                                (157 )
   litigation costs and settlements
   Net cash provided by (used in) operating activities from                                            1                           (10 )                                              1                             (18 )
   discontinued operations
                                                                                                  -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ------ --------------------
Adjusted net cash provided by operating activities - continuing                                            301                                                                 563                                                                 982                                                                 1,010
operations
   Purchases of property and equipment - continuing operations                         (201 )                                           (207 )                                           (614 )                                             (566 )
                                                                                                  -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ------ --------------------
Adjusted free cash flow - continuing operations                                                         $  100                                           $  356                                           $  368                                           $    444  
                                                                                                  ==================== ==== ====================                      ==================== ==== ====================                      ==================== ==== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                          
                                                                                                                                                                                             TENET HEALTHCARE CORPORATION
                                                                                                                                                                                     Additional Supplemental Non-GAAP disclosures
                                                                                                                                                                     Table #4 - Reconciliation of Outlook Adjusted EBITDA to Outlook
                                                                                                                                                                            Net Income Attributable to Tenet Healthcare Corporation Common
                                                                                                                                                                                                     Shareholders
                                                                                                                                                                                                      (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                  
(Dollars in millions)                                                                                                                                            Q4 2016                                                                                                                                                                  2016
                                                                                           ---------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         Low                                                                                High                                                                                 Low                                                                                High
                                                                                           ---------------------------------------------------------------                     ---------------------------------------------------------------                     ---------------------------------------------------------------                     ---------------------------------------------------------------
Net income (loss) attributable to Tenet Healthcare Corporation                                                $                    4                                                              $                   14                                                              $                 (109 )                                                            $                  (99 )
common shareholders
   Less: Net (income) loss attributable to noncontrolling interests                                                              (94 )                                                                              (114 )                                                                              (360 )                                                                              (380 )
      Net loss from discontinued operations, net of tax                                                        (5 )                                                              -                                           (10 )                                                             (5 )
                                                                                           -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
      Income from continuing operations                                                                                          103                                                                                 128                                                                                 261                                                                                 286
   Income tax expense                                                                                         (49 )                                                            (54 )                                                           (110 )                                                           (115 )
                                                                                           -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
      Income from continuing operations, before income taxes                                                                     152                                                                                 182                                                                                 371                                                                                 401
      Investment earnings                                                                                                          -                                                                                   -                                                                                   2                                                                                   2
   Interest expense                                                                                          (240 )                                                           (250 )                                                           (970 )                                                           (980 )
                                                                                           -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
      Operating income                                                                                                           392                                                                                 432                                                                               1,339                                                                               1,379
   Gains on sales, consolidation and deconsolidation of facilities(a)                                                              -                                                                                   -                                                                                 151                                                                                 151
                                                                                                                                   -                                                                                   -                                                                                (372 )                                                                              (372 )
   Impairment and restructuring charges, acquisition-related costs
   and litigation costs and settlements(a)
   Depreciation and amortization                                                                             (208 )                                                           (218 )                                                           (840 )                                                           (850 )
                                                                                           -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Adjusted EBITDA                                                                                               $                  600                                           $                  650                                           $                2,400                                           $                2,450  
                                                                                           ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                  
Adjusted EBITDA as % of net operating revenues (Adjusted EBITDA                                                                 12.3 %                                                                              12.9 %                                                                              12.2 %                                                                              12.4 %
margin)
                                                                                                                                                                                                                                                                                                                                                                                                  
Net income (loss) from continuing operations                                                                  $                    9                                                              $                   14                                                              $                  (99 )                                                            $                  (94 )
                                                                                                                                                                                                                                                                                                                                                                                                  
Net income (loss) from continuing operations as a % of operating                                                                 0.2 %                                                                               0.3 %                                                                              (0.5 )%                                                                             (0.5 )%
revenues
                                                                                                                                                                                 
                                                                                           -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Net operating revenues                                                                                        $                4,889                                           $                5,039                                           $               19,650                                           $               19,800  
                                                                                           ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                  
Adjusted EBITDA                                                                                               $                  600                                                              $                  650                                                              $                2,400                                                              $                2,450
   Depreciation and amortization                                                                                                (208 )                                                                              (218 )                                                                              (840 )                                                                              (850 )
   Investment Earnings                                                                                                             -                                                              -                    -                                                                                   2                                                                                   2
   Interest expense                                                                                          (240 )                                                           (250 )                                                           (970 )                                                           (980 )
                                                                                           -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
      Adjusted income from continuing operations before income taxes                                                             152                                                                                 182                                                                                 592                                                                                 622
   Income tax expense                                                                                         (41 )                                                            (46 )                                                           (135 )                                                           (140 )
                                                                                           -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
      Adjusted income from continuing operations                                                                                 111                                                                                 136                                                                                 457                                                                                 482
   Net income attributable to noncontrolling interests                                                        (94 )                                                           (114 )                                                           (340 )                                                           (360 )
                                                                                           -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Adjusted net income attributable to common shareholders                                                       $                   17                                                              $                   22                                                              $                  117                                                              $                  122  
                                                                                           ==================== ====================                                           ==================== ====================                                           ==================== ====================                                           ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                  
   Basic weighted average shares outstanding                                                                                     100                                                                                 100                                                                                  99                                                                                  99
                                                                                                                                                                                                                                                                                                                                                                                                  
   Fully diluted weighted average shares outstanding (in millions)                                                               102                                                                                 102                                                                                 101                                                                                 101
                                                                                                                                                                                                                                                                                                                                                                                                  
   Diluted earnings per share from continuing operations                                                      $                 0.09                                                              $                 0.14                                                              $                (1.00 )                                                            $                (0.95 )
                                                                                                                                                                                                                                                                                                                                                                                                  
   Adjusted diluted earnings per share from continuing operations                                             $                 0.17                                                              $                 0.22                                                              $                 1.16                                                              $                 1.21
                                                                                                                                                                                                                                                                                                                                                                                                  
(a) Company does not forecast impairment and
restructuring charges, acquisition-related costs and litigation
costs and settlements and gains 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.
                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                   
                                                                                                TENET HEALTHCARE CORPORATION
                                                                                        Additional Supplemental Non-GAAP disclosures
                                                                          Table #5 - Reconciliation of Outlook Adjusted Free Cash Flow
                                                                                            for the Year Ending December 31, 2016
                                                                                                                                                                                                         
(Dollars in millions)                                                                                                                                        2016
                                                                                                  ---------------------------------------------------------------------------------------------------------------------------
                                                                                                                          Low                                                                    High
                                                                                                  ---------------------------------------------------                     ---------------------------------------------------
Net cash provided by operating activities                                                                            $    1,163                                                              $    1,323
Less:
   Payments for restructuring charges, acquisition-related costs and                                                       (132 )                                                                  (132 )
   litigation costs and settlements(a)
   Net cash provided by (used in) operating activities from                                               (5 )                                                  5  
   discontinued operations, excluding income taxes
                                                                                                  -------------------- -------- --------------------                      -------------------- -------- --------------------
Adjusted net cash provided by operating activities - continuing                                         $    1,300                                                              $    1,450
operations
   Purchases of property and equipment - continuing operations                             (900 )                                               (850 )
                                                                                                  -------------------- -------- --------------------                      -------------------- -------- --------------------
Adjusted free cash flow - continuing operations                                                         $      400                                           $      600  
                                                                                                  ==================== ======== ====================                      ==================== ======== ====================
                                                                                                                                                                                                         
(a) Company does not forecast restructuring charges,
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.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20161031006187r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20161031006187/en/

SOURCE: Tenet Healthcare Corporation

Tenet Healthcare Corporation 
Corporate Communications 
Charles Nicolas, 469-893-2640 
mediarelations@tenethealth.com 
or 
Investor Relations 
Brendan Strong, 469-893-6992 
investorrelations@tenethealth.com


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