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Tenet Healthcare Corp.$21.20($1.66)(7.26%)

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 Tenet Reports Results for the Fourth Quarter Ended December 31, 2017
   Monday, February 26, 2018 4:15:00 PM ET

--Ambulatory Care same-facility system-wide cases increased 4.6% and revenue per case increased 2.2%, resulting in revenue growth of 6.9%.

--Conifer’s revenues decreased 2.0% with revenue from third parties flat year-over-year.

--As a result of the Tax Cuts and Jobs Act, Tenet recorded a $252 million non-cash partial write-down of the Company’s deferred tax assets and a $22 million increase in noncontrolling interest expense, which lowered net income by $274 million in the fourth quarter. In addition, the Company recorded a $99 million after-tax charge, primarily related to the write-down of assets held for sale in Chicago and employee severance. As a result, Tenet reported a net loss from continuing operations attributable to Tenet shareholders of $230 million or $2.28 per diluted share in the fourth quarter. After adjusting for these items, which totaled $373 million or $3.68 per share, Tenet reported Adjusted diluted earnings per share from continuing operations of $1.40.



--Adjusted EBITDA was $840 million in the fourth quarter, consisting of $538 million in the Hospital segment, $223 million in the Ambulatory segment and $79 million in the Conifer segment.

--Net cash provided by operating activities in 2017 was $1.200 billion, a $642 million increase when compared to $558 million in 2016. Free Cash Flow was $493 million in 2017, an $810 million increase when compared to an outflow of $317 million in 2016. Adjusted Free Cash Flow was $623 million in 2017, a $243 million increase when compared to $380 million in 2016.

--2018 Outlook has been increased to reflect net income from continuing operations attributable to Tenet common shareholders of $95 million to $105 million, Adjusted EBITDA of $2.500 billion to $2.600 billion, diluted earnings per share from continuing operations of $0.92 to $1.02 and Adjusted diluted earnings per share from continuing operations of $0.73 to $1.07.

Tenet Healthcare Corporation (THC ) reported a net loss from continuing operations attributable to Tenet shareholders of $230 million in the fourth quarter of 2017 due to the items mentioned above, compared to a $79 million net loss from continuing operations in the fourth quarter of 2016. Adjusted EBITDA was $840 million in the fourth quarter of 2017 compared to $650 million in the fourth quarter of 2016.

"Our results for the fourth quarter were strong in each of our business segments," said Ronald A. Rittenmeyer, executive chairman and CEO. "Volume growth returned in our hospital and Ambulatory segments, cost controls were tight, and our financial results at USPI and Conifer were very strong. Our cost control program is off to a great start and, when combined with improved financial performance in the fourth quarter, we are raising our Outlook for Adjusted EBITDA and Adjusted EPS for 2018."

Hospital Operations and Other Segment

Net operating revenues in the Hospital Operations and other segment was $4.184 billion, up 3.4 percent from $4.046 billion in the fourth quarter of 2016; in order to improve comparability, these revenue figures exclude revenue generated by the Company’s health plans in both periods since the Company is exiting this business.

On a same-hospital basis, patient revenue was $4.126 billion, up 6.1 percent from $3.889 billion in the fourth quarter of 2016, with adjusted admissions up 1.3 percent and revenue per adjusted admission up 4.8 percent. The growth in revenue per adjusted admission was due to a $202 million increase in revenue from the California Provider Fee Program since the 2017 program was not approved until December 2017.

Adjusted EBITDA in Tenet’s hospital segment was $538 million, representing an increase of $143 million or 36.2 percent as compared to $395 million in the fourth quarter of 2016. The $143 million increase in Adjusted EBITDA in the hospital segment was primarily driven by: (i) $202 million increase in California Provider Fee revenue, with $267 million of revenue being under the program in the fourth quarter of 2017 compared to $65 million in the fourth quarter of 2016; (ii) $17 million unfavorable comparison due to the sale of the Company’s hospitals and related assets in Houston, effective August 1, 2017; (iii) $17 million of previously disclosed executive severance in the fourth quarter of 2017; and, (iv) an $8 million decline in electronic health record incentives.

Tenet’s health plan business was breakeven in the fourth quarter of 2017 versus a loss of $29 million on the EBITDA line in the fourth quarter of 2016. The revenue and expenses associated with the Company’s health plan operations are included in Tenet’s consolidated statements of operations; however, the results are excluded from Adjusted EBITDA in both periods.

Selected operating expenses in the segment, defined as the sum of salaries, wages and benefits, supplies and other operating expenses, increased 2.2 percent on a per adjusted admission basis in the fourth quarter of 2017.

Exchanges

Tenet’s same-hospital exchange admissions were 4,857 in the fourth quarter of 2017, up 0.2 percent from the fourth quarter of 2016. Same-hospital exchange outpatient visits were 51,451 in the fourth quarter of 2017, up 15.2 percent from the fourth quarter of 2016.

Uncompensated Care

Tenet’s provision for doubtful accounts was $325 million in the fourth quarter of 2017, representing a ratio of 6.1 percent of revenues before bad debt, as compared to $354 million in the fourth quarter of 2016, or 6.9 percent of revenues before bad debt (excluding health plan revenues from both periods). The decrease in the bad debt ratio was primarily attributable to a $15 million decrease in same-hospital self-pay revenues, revenue growth in our Ambulatory segment, the sale of our Houston hospitals in 2017, and a full year of the California Provider Fee revenue being recorded in the fourth quarter of 2017.

Tenet’s uncompensated care costs, defined as the sum of the provision for doubtful accounts, charity care write-offs and uninsured discounts, were $1.361 billion and $1.332 billion in the fourth quarters of 2017 and 2016, respectively, including $1.036 billion and $978 million, respectively, of charity care write-offs and uninsured discounts that were offered through Tenet’s Compact with Uninsured Patients. Uncompensated care in the fourth quarter of 2017 represented 21.5 percent of revenue before bad debts, uninsured discounts and charity care write-offs, flat versus the fourth quarter of 2016. Nearly all of Tenet’s uncompensated care is associated with the Hospital Operations and other segment.

Uninsured plus charity admissions increased by 317 admissions, or 3.3 percent on a same-hospital basis in the fourth quarter of 2017 compared to the fourth quarter of 2016. Uninsured plus charity outpatient visits increased by 6,237 visits, or 5.6 percent, on a same-hospital basis.

Ambulatory Care Segment

During the fourth quarter of 2017, the Ambulatory segment produced net operating revenues of $545 million, representing an increase of 14.0 percent as compared to $478 million in the fourth quarter of 2016. In addition, the Ambulatory segment generated Adjusted EBITDA of $223 million, up 21.9 percent from $183 million in the fourth quarter of 2016 and Adjusted EBITDA less facility-level noncontrolling interest was $145 million, up 26.1 percent from $115 million in the fourth quarter of 2016.

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 6.9 percent, with cases increasing 4.6 percent and revenue per case increasing 2.2 percent. The number of surgical days was the same in both periods and did not impact the year-over-year growth rates this quarter.

Conifer Segment

During the fourth quarter of 2017, Conifer’s revenue decreased 2.0 percent to $394 million, down from $402 million in the fourth quarter of 2016. Revenue from third party customers was flat at $239 million. Conifer generated $79 million of Adjusted EBITDA in the fourth quarter of 2017, up 9.7 percent from $72 million in the fourth quarter of 2016.

Net Income and Earnings Per Share

Tenet reported a net loss from continuing operations attributable to Tenet shareholders of $230 million, or a loss of $2.28 per diluted share, in the fourth quarter of 2017 compared to a net loss of $79 million, or a loss of $0.79 per diluted share, in the fourth quarter of 2016.

As shown on Table #2, the net loss from continuing operations attributable to Tenet shareholders of approximately $230 million included: (i) a $252 million non-cash partial write-down of the Company’s deferred tax assets due to the reduction in the corporate federal income tax rate from 35 percent to 21 percent; (ii) a $138 million pre-tax impairment and restructuring charge consisting of $73 million from the write-down of assets held for sale in the Chicago-area to their estimated fair value, $42 million of restructuring charges primarily related to employee severance associated with the Company’s cost reduction initiatives, and $23 million of other impairment and restructuring charges; and, (iii) $9 million of other items. These items collectively lowered pre-tax income by approximately $147 million and lowered after-tax income by approximately $350 million. In addition, there was a noncontrolling interest impact of $23 million substantially due to a non-cash reduction in the deferred tax liabilities of the Company’s Ambulatory segment. Collectively, these items lowered diluted earnings per share by approximately $3.68.

After adjusting for the items listed on Table #2, Tenet recorded Adjusted net income from continuing operations attributable to Tenet shareholders of $143 million, or $1.40 per diluted share, during the fourth quarter of 2017, as compared to Adjusted net income from continuing operations attributable to Tenet shareholders of $23 million, or $0.23 per diluted share, in the fourth quarter of 2016.

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

Cash Flow and Liquidity

Cash and cash equivalents were $611 million at December 31, 2017 compared to $429 million at September 30, 2017. The Company had no outstanding borrowings on its $1 billion credit line as of December 31, 2017. Accounts receivable days outstanding from continuing operations were 55.2 at December 31, 2017 compared to 55.6 at September 30, 2017 and 56.5 at December 31, 2016. The calculation of accounts receivable days outstanding from continuing operations: (i) includes the accounts receivable of the Company’s two hospitals in Philadelphia, the Company’s four hospitals in the Chicago-area, Des Peres Hospital in St. Louis, and the Aspen facilities in the United Kingdom, which have been classified in assets held for sale on the Condensed Consolidated Balance Sheet at December 31, 2017; (ii) excludes revenue from our former hospitals and related assets in Houston, which were divested on August 1, 2017, from the 2016 and 2017 periods; (iii) excludes health plan revenues from the 2016 and 2017 periods; and (iv) excludes California Provider Fee revenues from both 2016 and 2017.

Net cash provided by operating activities in 2017 was $1.200 billion, representing a $642 million increase compared to $558 million in 2016. After subtracting $707 million and $875 million of capital expenditures in 2017 and 2016, respectively, Free Cash Flow was $493 million in 2017, an $810 million improvement compared to an outflow of $317 million in 2016. Adjusted Free Cash Flow was $623 million in 2017, representing a $243 million increase from $380 million in 2016.

Net cash provided by investing activities was $21 million in 2017 compared to $430 million of net cash used in investing activities in 2016. The 2017 period included $827 million of proceeds from the sales of facilities and other assets, primarily from the sale of the Company’s Houston-area hospitals effective August 1, 2017 for net pre-tax proceeds of approximately $750 million; the 2016 period included $573 million of proceeds from the sale of the Company’s hospitals and related outpatient facilities in Georgia.

Net cash used in financing activities was $1.326 billion in 2017 compared to $232 million of net cash provided by financing activities in 2016. The 2017 period included: (i) $729 million related to purchases of noncontrolling interests, primarily the Company’s purchase of an additional 23.7 percent of USPI, which increased Tenet’s ownership interest in the USPI joint venture to 80.0 percent; (ii) the refinancing activities that were completed in the second and third quarters of 2017; and (iii) the redemption of $250 million aggregate principal amount of Tenet’s 8.0 percent senior unsecured notes due 2020 on September 11, 2017.

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 revised Outlook for 2018 includes:

-- Revenue of $17.9 billion to $18.3 billion,

-- Net income from continuing operations attributable to Tenet common shareholders of $95 million to $105 million,

-- Adjusted EBITDA of $2.500 billion to $2.600 billion,

-- Net cash provided by operating activities of $1.245 billion to $1.450 billion,

-- Adjusted Free Cash Flow of $675 million to $875 million,

-- Diluted earnings per share from continuing operations attributable to Tenet shareholders ranging from $0.92 to $1.02, and

-- Adjusted diluted earnings per share from continuing operations attributable to Tenet shareholders of $0.73 to $1.07.

The Company raised the midpoint of its previous 2018 Adjusted EBITDA Outlook range $25 million to reflect: (i) higher expectations for Conifer; (ii) additional Medicaid DSH reimbursement since Medicaid DSH reimbursement cuts have been delayed in both federal fiscal years 2018 and 2019; (iii) greater than previously expected revenue from the California Provider Fee program in 2018; and (iv) a net reduction in estimated EBITDA from to-be-divested facilities in 2018.

The Outlook for 2018 assumes equity in earnings of unconsolidated affiliates of $160 million to $170 million, net income attributable to noncontrolling interests of $415 million to $435 million and an average diluted share count of 103 million.

The Company’s Outlook for the first quarter of 2018 includes:

-- Revenue of $4.45 billion to $4.65 billion,

-- Net income from continuing operations attributable to Tenet shareholders of $50 million to $70 million,

-- Adjusted EBITDA of $580 million to $630 million,

-- Earnings per diluted share from continuing operations attributable to Tenet shareholders of $0.49 to $0.69, and

-- Adjusted earnings per diluted share from continuing operations attributable to Tenet shareholders ranging from a loss of $0.10 to earnings of $0.05.

The Outlook for the first quarter assumes equity in earnings of unconsolidated affiliates of approximately $30 million to $35 million, net income attributable to noncontrolling interests of $90 million to $100 million, and an average diluted share count of 102 million.

Additional details on Tenet’s Outlook for both the first quarter and calendar year 2018 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 Fourth Quarter Results

Tenet management will discuss the Company’s fourth quarter 2017 results on a webcast scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on February 27, 2018. Investors can access the webcast through the Company’s website at www.tenethealth.com/investors. A set of slides, which will be referred to on the conference call, 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-K report for the twelve months ended December 31, 2017, which will be filed with the Securities and Exchange Commission and posted on the Company’s website before the webcast.

This press release includes certain non-GAAP measures, such as Adjusted EBITDA, Adjusted net income (loss) from continuing operations attributable to Tenet shareholders, Adjusted diluted earnings (loss) per share from continuing operations attributable to Tenet shareholders, 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 120,000 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 general acute care and specialty hospitals, ambulatory surgery centers, urgent care centers and other outpatient facilities in the United States and 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," "estimate," "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, 2017, and subsequent Form 10-Q filings and other filings with the Securities and Exchange Commission.

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 December 31,
                                                                                           -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           2017                                               %                                             2016                                               %                                    Change
                                                                                           -------------------------------------                     ------------------                     -------------------------------------                     ------------------                     ---------------------
Net operating revenues:
  Net operating revenues before provision for doubtful accounts                                  $   5,303                                                                                        $   5,214                                                                                         1.7 %
  Less: Provision for doubtful accounts                                                                325                                                                           354                                                                     (8.2 )%
                                                                                           ------------------------------------                                                             ------------------------------------
Net operating revenues                                                                               4,978                                                    100.0 %                                 4,860                                                    100.0 %                              2.4 %
Equity in earnings of unconsolidated affiliates                                                         49                                                      1.0 %                                    46                                                      0.9 %                              6.5 %
Operating expenses:
  Salaries, wages and benefits                                                                       2,284                                                     45.9 %                                 2,316                                                     47.7 %                             (1.4 )%
  Supplies                                                                                             800                                                     16.0 %                                   773                                                     15.9 %                              3.5 %
  Other operating expenses, net                                                                      1,104                                                     22.2 %                                 1,205                                                     24.7 %                             (8.4 )%
  Electronic health record incentives                                                                   (1 )                                         -- %                                    (9 )                                                   (0.2 )%                           (88.9 )%
  Depreciation and amortization                                                                        208                                                      4.2 %                                   218                                                      4.5 %
  Impairment and restructuring charges, and acquisition-related costs                                  138                                                      2.8 %                                   121                                                      2.5 %
  Litigation and investigation costs                                                                    11                                                      0.2 %                                     2                                           -- %
Gains on sales, consolidation and deconsolidation of facilities                                         (2 )                                         -- %                                     0                        -- %
                                                                                           ------------------------------------                                                             ------------------------------------
Operating income                                                                                       485                                                      9.7 %                                   280                                                      5.8 %
Interest expense                                                                                      (253 )                                                                                           (249 )
Other non-operating expense, net                                                                        (8 )                                                                                             (2 )
Loss from early extinguishment of debt                                                      --                                                                --  
                                                                                           ------------------------------------                                                             ------------------------------------
Income from continuing operations, before income taxes                                                 224                                                                                               29
Income tax expense                                                                                    (324 )                                                                                             (6 )
                                                                                           ------------------------------------                                                             ------------------------------------
Income (loss) from continuing operations, before discontinued                                         (100 )                                                                                             23
operations
Discontinued operations:
  Income (loss) from operations                                                                          1                                                                                               (1 )
  Income tax benefit                                                                        --                                                                             1  
                                                                                           ------------------------------------                                                             ------------------------------------
Income (loss) from discontinued operations                                                               1                                                                --  
                                                                                           ------------------------------------                                                             ------------------------------------
Net income (loss)                                                                                      (99 )                                                                                             23
  Less: Net income attributable to noncontrolling interests                                            130                                                                           102  
                                                                                           ------------------------------------                                                             ------------------------------------
Net loss attributable to Tenet Healthcare Corporation common                                     $    (229 )                                                                                      $     (79 )
shareholders
                                                                                           ======= ======= ====================                                                             ======= ======= ====================
Amounts attributable to Tenet Healthcare Corporation common
shareholders
   Loss from continuing operations, net of tax                                                   $    (230 )                                                                                      $     (79 )
   Income (loss) from discontinued operations, net of tax                                                1                                                                --  
                                                                                           ------------------------------------                                                             ------------------------------------
   Net loss attributable to Tenet Healthcare Corporation common                                  $    (229 )                                                                                      $     (79 )
   shareholders
                                                                                           ======= ======= ====================                                                             ======= ======= ====================
Earnings (loss) per share attributable to Tenet Healthcare
Corporation common shareholders:
  Basic
   Continuing operations                                                                         $   (2.28 )                                                                                      $   (0.79 )
   Discontinued operations                                                                            0.01                                                                          0.00  
                                                                                           ------------------------------------                                                             ------------------------------------
                                                                                                 $   (2.27 )                                                                                      $   (0.79 )
                                                                                           ======= ======= ====================                                                             ======= ======= ====================
  Diluted
   Continuing operations                                                                         $   (2.28 )                                                                                      $   (0.79 )
   Discontinued operations                                                                            0.01                                                                          0.00  
                                                                                           ------------------------------------                                                             ------------------------------------
                                                                                                 $   (2.27 )                                                                                      $   (0.79 )
                                                                                           ======= ======= ====================                                                             ======= ======= ====================
  Weighted average shares and dilutive securities outstanding (in
  thousands):
   Basic                                                                                           100,945                                                                                                                99,651
   Diluted*                                                                                        100,945                                                                                                                99,651
                                                                                                                                                                                                                                                                                              
* Had we generated income from continuing operations in the three
  months ended December 31, 2017 and 2016 the effect of employee stock
  options, restricted stock units and deferred compensation units on
  the diluted shares calculation would have been an increase of 908
  thousand and 1,277 thousand shares, respectively.
   
                                                                                                                                                                           
                                                                                                                                  TENET HEALTHCARE CORPORATION
                                                                                                                              CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                           (Unaudited)
                                                                                                                                                                                                                                                                            
(Dollars in millions except per share amounts)                                                                                                                                   Years Ended December 31,
                                                                                           -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           2017                                          %                                         2016                                          %                                Change
                                                                                           -------------------------------------                     ---------                     -------------------------------------                     ---------                     ---------------------
Net operating revenues:
  Net operating revenues before provision for doubtful accounts                                  $  20,613                                                                               $  21,070                                                                               (2.2 )%
  Less: Provision for doubtful accounts                                                              1,434                                                                1,449                                                            (1.0 )%
                                                                                           ------------------------------------                                                    ------------------------------------
Net operating revenues                                                                              19,179                                           100.0 %                                19,621                                           100.0 %                             (2.3 )%
Equity in earnings of unconsolidated affiliates                                                        144                                             0.8 %                                   131                                             0.7 %                              9.9 %
Operating expenses:
  Salaries, wages and benefits                                                                       9,274                                            48.4 %                                 9,328                                            47.5 %                             (0.6 )%
  Supplies                                                                                           3,085                                            16.1 %                                 3,124                                            15.9 %                             (1.2 )%
  Other operating expenses, net                                                                      4,570                                            23.8 %                                 4,891                                            25.0 %                             (6.6 )%
  Electronic health record incentives                                                                   (9 )                                           0.0 %                                   (32 )                                          (0.2 )%                           (71.9 )%
  Depreciation and amortization                                                                        870                                             4.5 %                                   850                                             4.3 %
  Impairment and restructuring charges, and acquisition related costs                                  541                                             2.8 %                                   202                                             1.1 %
  Litigation and investigation costs                                                                    23                                             0.1 %                                   293                                             1.5 %
Gains on sales, consolidation and deconsolidation of facilities                                       (144 )                                          (0.7 )%                                 (151 )                                          (0.8 )%
                                                                                           ------------------------------------                                                    ------------------------------------
Operating income                                                                                     1,113                                             5.8 %                                 1,247                                             6.4 %
Interest expense                                                                                    (1,028 )                                                                                  (979 )
Other non-operating expense, net                                                                       (22 )                                                                                   (20 )
Loss from early extinguishment of debt                                                                (164 )                                                                        --  
                                                                                           ------------------------------------                                                    ------------------------------------
Income (loss) from continuing operations, before income taxes                                         (101 )                                                                                   248
Income tax expense                                                                                    (219 )                                                                                   (67 )
                                                                                           ------------------------------------                                                    ------------------------------------
Income (loss) from continuing operations, before discontinued                                         (320 )                                                                                   181
operations
Discontinued operations:
  Loss from operations                                                                      --                                                                                      (6 )
  Income tax benefit                                                                        --                                                                    1  
                                                                                           ------------------------------------                                                    ------------------------------------
Loss from discontinued operations                                                           --                                                                   (5 )
                                                                                           ------------------------------------                                                    ------------------------------------
Net income (loss)                                                                                     (320 )                                                                                   176
  Less: Net income attributable to noncontrolling interests                                            384                                                                  368  
                                                                                           ------------------------------------                                                    ------------------------------------
Net loss attributable to Tenet Healthcare Corporation common                                     $    (704 )                                                                             $    (192 )
shareholders
                                                                                           ======= ======= ====================                                                    ======= ======= ====================
Amounts attributable to Tenet Healthcare Corporation common
shareholders
   Loss from continuing operations, net of tax                                                   $    (704 )                                                                             $    (187 )
   Loss from discontinued operations, net of tax                                            --                                                                   (5 )
                                                                                           ------------------------------------                                                    ------------------------------------
   Net loss attributable to Tenet Healthcare Corporation common                                  $    (704 )                                                                             $    (192 )
   shareholders
                                                                                           ======= ======= ====================                                                    ======= ======= ====================
Earnings (loss) per share attributable to Tenet Healthcare
Corporation common shareholders:
  Basic
   Continuing operations                                                                         $   (7.00 )                                                                             $   (1.88 )
   Discontinued operations                                                                  --                                                                (0.05 )
                                                                                           ------------------------------------                                                    ------------------------------------
                                                                                                 $   (7.00 )                                                                             $   (1.93 )
                                                                                           ======= ======= ====================                                                    ======= ======= ====================
  Diluted
   Continuing operations                                                                         $   (7.00 )                                                                             $   (1.88 )
   Discontinued operations                                                                  --                                                                (0.05 )
                                                                                           ------------------------------------                                                    ------------------------------------
                                                                                                 $   (7.00 )                                                                             $   (1.93 )
                                                                                           ======= ======= ====================                                                    ======= ======= ====================
  Weighted average shares and dilutive securities outstanding (in
  thousands):
   Basic                                                                                           100,592                                                                                                       99,321
   Diluted*                                                                                        100,592                                                                                                       99,321
                                                                                                                                                                                                                                                                            
* Had we generated income from continuing operations in the twelve
  months ended December 31, 2017 and 2016, the effect of employee
  stock options, restricted stock units and deferred compensation
  units on the diluted shares calculation would have been an increase
  of 788 thousand and 1,421 thousand shares, respectively.
   
                                                                                                         
                                                                           TENET HEALTHCARE CORPORATION
                                                                            CONSOLIDATED BALANCE SHEETS
                                                                                    (Unaudited)
                                                                                                                                                 
                                                                                                    December 31,                                           December 31,
(Dollars in millions)                                                                                   2017                                                   2016
                                                                                          ---------------------------------                     -----------------------------------
                               ASSETS
Current assets:
   Cash and cash equivalents                                                                 $    611                                                $    716
   Accounts receivable, less allowance for doubtful accounts                                    2,616                                                   2,897
   Inventories of supplies, at cost                                                               289                                                     326
   Income tax receivable                                                                            5                                                       4
   Assets held for sale                                                                         1,017                                                      29
   Other current assets                                                                         1,035                                1,285  
                                                                                          --------------------------------                      ----------------------------------
     Total current assets                                                                       5,573                                                   5,257
Investments and other assets                                                                    1,543                                                   1,250
Deferred income taxes                                                                             455                                                     871
Property and equipment, at cost, less accumulated depreciation and                              7,030                                                   8,053
amortization
Goodwill                                                                                        7,018                                                   7,425
Other intangible assets, at cost, less accumulated amortization                                 1,766                                1,845  
                                                                                          --------------------------------                      ----------------------------------
Total assets                                                                                 $ 23,385                             $ 24,701  
                                                                                          ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                 
                       LIABILITIES AND EQUITY
Current liabilities:
   Current portion of long-term debt                                                         $    146                                                $    191
   Accounts payable                                                                             1,175                                                   1,329
   Accrued compensation and benefits                                                              848                                                     872
   Professional and general liability reserves                                                    200                                                     181
   Accrued interest payable                                                                       256                                                     210
   Liabilities held for sale                                                                      480                                                       9
   Other current liabilities                                                                    1,227                                1,242  
                                                                                          --------------------------------                      ----------------------------------
     Total current liabilities                                                                  4,332                                                   4,034
Long-term debt, net of current portion                                                         14,791                                                  15,064
Professional and general liability reserves                                                       654                                                     613
Defined benefit plan obligations                                                                  536                                                     626
Deferred income taxes                                                                              36                                                     279
Other long-term liabilities                                                                       631                                  610  
                                                                                          --------------------------------                      ----------------------------------
     Total liabilities                                                                         20,980                                                  21,226
Commitments and contingencies
Redeemable noncontrolling interests in equity of consolidated                                   1,866                                                   2,393
subsidiaries
Equity:
  Shareholders’ equity:
   Common stock                                                                                     7                                                       7
   Additional paid-in capital                                                                   4,859                                                   4,827
   Accumulated other comprehensive loss                                                          (204 )                                                  (258 )
   Accumulated deficit                                                                         (2,390 )                                                (1,742 )
   Common stock in treasury, at cost                                                           (2,419 )                                                (2,417 )
                                                                                          --------------------------------                      ----------------------------------
     Total shareholders’ equity (deficit)                             (147 )                                                   417
  Noncontrolling interests                                                                        686                                  665  
                                                                                          --------------------------------                      ----------------------------------
     Total equity                                                                                 539                                1,082  
                                                                                          --------------------------------                      ----------------------------------
Total liabilities and equity                                                                 $ 23,385                             $ 24,701  
                                                                                          ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                               
                                                                            
                                                                                 TENET HEALTHCARE CORPORATION
                                                                             CONSOLIDATED STATEMENTS OF CASH FLOW
                                                                                          (Unaudited)
                                                                                                 
                                                                                                                                          Years Ended
(Dollars in millions)                                                                                                                    December 31,
                                                                                                -----------------------------------------------------------------------------------------------
                                                                                                                2017                                   2016
                                                                                                -------------------------------------                     -------------------------------------
Net income (loss)                                                                                     $    (320 )                                               $     176
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
  Depreciation and amortization                                                                             870                                                       850
  Provision for doubtful accounts                                                                         1,434                                                     1,449
  Deferred income tax expense                                                                               200                                                        41
  Stock-based compensation expense                                                                           59                                                        68
  Impairment and restructuring charges, and acquisition-related costs                                       541                                                       202
  Litigation and investigation costs                                                                         23                                                       293
  Gains on sales, consolidation and deconsolidation of facilities                                          (144 )                                                    (151 )
  Loss from early extinguishment of debt                                                                    164                                            --
  Equity in earnings of unconsolidated affiliates, net of                                                   (18 )                                                     (13 )
  distributions received
  Amortization of debt discount and debt issuance costs                                                      44                                                        41
  Pre-tax loss from discontinued operations                                                      --                                                         6
  Other items, net                                                                                          (18 )                                                      (1 )
Changes in cash from operating assets and liabilities:
  Accounts receivable                                                                                    (1,448 )                                                  (1,604 )
  Inventories and other current assets                                                                      (35 )                                                     (83 )
  Income taxes                                                                                              (38 )                                                      (8 )
  Accounts payable, accrued expenses and other current liabilities                                          (10 )                                                     (51 )
  Other long-term liabilities                                                                                26                                                        40
Payments for restructuring charges, acquisition-related costs,                                             (125 )                                                    (691 )
and litigation costs and settlements
Net cash used in operating activities from discontinued                                                      (5 )                                                      (6 )
operations, excluding income taxes
                                                                                                --------------  --------------------                      --------------  --------------------
   Net cash provided by operating activities                                                              1,200                                                       558
Cash flows from investing activities:
  Purchases of property and equipment -- continuing operations                                 (707 )                                                    (875 )
  Purchases of businesses or joint venture interests, net of cash                                           (50 )                                                    (117 )
  acquired
  Proceeds from sales of facilities and other assets                                                        827                                                       573
  Proceeds from sales of marketable securities, long-term investments                                        36                                                        62
  and other assets
  Purchases of equity investments                                                                           (68 )                                                     (39 )
  Other long-term assets                                                                                    (10 )                                                     (31 )
  Other items, net                                                                                           (7 )                                                      (3 )
                                                                                                ------------------------------------                      ------------------------------------
   Net cash provided by (used in) investing activities                                                       21                                                      (430 )
Cash flows from financing activities:
  Repayments of borrowings under credit facility                                                           (970 )                                                  (1,895 )
  Proceeds from borrowings under credit facility                                                            970                                                     1,895
  Repayments of other borrowings                                                                         (4,139 )                                                    (154 )
  Proceeds from other borrowings                                                                          3,795                                                       760
  Debt issuance costs                                                                                       (62 )                                                     (12 )
  Distributions paid to noncontrolling interests                                                           (258 )                                                    (218 )
  Proceeds from sale of noncontrolling interests                                                             31                                                        22
  Purchases of noncontrolling interests                                                                    (729 )                                                    (186 )
  Proceeds from exercise of stock options and employee stock purchase                                         7                                                         4
  plan
  Other items, net                                                                                           29                                     16  
                                                                                                ------------------------------------                      ------------------------------------
   Net cash provided by (used in) financing activities                                                   (1,326 )                                                     232  
                                                                                                ------------------------------------                      ------------------------------------
Net increase (decrease) in cash and cash equivalents                                                       (105 )                                                     360
Cash and cash equivalents at beginning of period                                                            716                                    356  
                                                                                                ------------------------------------                      ------------------------------------
Cash and cash equivalents at end of period                                                            $     611                              $     716  
                                                                                                ======= ======= ====================                      ======= ======= ====================
Supplemental disclosures:
  Interest paid, net of capitalized interest                                                          $    (939 )                                               $    (932 )
  Income tax payments, net                                                                            $     (56 )                                               $     (33 )
                                                                                                                                                                           
                                                                                                                                                                  
                                                                                                                                         TENET HEALTHCARE CORPORATION
                                                                                                                       SELECTED STATISTICS - CONTINUING TOTAL HOSPITALS(1)
                                                                                                                                                  (Unaudited)
                                                                                                                                                                                                                                                                                           
(Dollars in millions except per patient day, per admission, per                                                         Three Months Ended December 31,                                                                              Years Ended December 31,
adjusted admission and per visit amounts)
                                                                                              -------------------------------------------------------------------------                                  -----------------------------------------------------------------------
                                                                                       2017                       2016         Change                       2017                      2016         Change
                                                                         ---------------------------------                     ----------------                     ---------       ---------------------------------                     ---------------                     ---------
                                                                                                                                                                                                                                                                                           
Admissions, Patient Days and Surgeries
 Number of hospitals (at end of period)                                                                72                                   75                            (3 )   *                                72                                  75                            (3 )  *
 Total admissions                                                                                 186,185                              192,104                          (3.1 )%                              758,875                             792,143                          (4.2 )%
 Adjusted patient admissions                                                                      332,642                              338,929                          (1.9 )%                            1,354,266                           1,389,768                          (2.6 )%
 Paying admissions (excludes charity and uninsured)                                               176,158                              181,617                          (3.0 )%                              717,498                             749,634                          (4.3 )%
 Charity and uninsured admissions                                                                  10,027                               10,487                          (4.4 )%                               41,377                              42,509                          (2.7 )%
 Admissions through emergency department                                                          123,887                              120,549                           2.8 %                               492,660                             499,335                          (1.3 )%
 Paying admissions as a percentage of total admissions                                               94.6                    %            94.5                    %      0.1 %   *                              94.5                    %           94.6                    %     (0.1 )% *
 Charity and uninsured admissions as a percentage of total admissions                                 5.4                    %             5.5                    %     (0.1 )%  *                               5.5                    %            5.4                    %      0.1 %  *
 Emergency department admissions as a percentage of total admissions                                 66.5                    %            62.8                    %      3.7 %   *                              64.9                    %           63.0                    %      1.9 %  *
 Surgeries -- inpatient                                                                50,292                               53,071                          (5.2 )%                              205,114                             217,906                          (5.9 )%
 Surgeries -- outpatient                                                               68,604                               73,678                          (6.9 )%                              276,895                             298,974                          (7.4 )%
  Total surgeries                                                                                 118,896                              126,749                          (6.2 )%                              482,009                             516,880                          (6.7 )%
 Patient days -- total                                                                857,728                              888,185                          (3.4 )%                            3,509,056                           3,690,335                          (4.9 )%
 Adjusted patient days                                                                          1,505,130                            1,543,490                          (2.5 )%                            6,163,961                           6,395,025                          (3.6 )%
 Average length of stay (days)                                                                       4.61                                 4.62                          (0.2 )%                                 4.62                                4.66                          (0.9 )%
 Licensed beds (at end of period)                                                                  19,141                               20,354                          (6.0 )%                               19,141                              20,354                          (6.0 )%
 Average licensed beds                                                                             19,320                               20,326                          (4.9 )%                               19,995                              20,651                          (3.2 )%
 Utilization of licensed beds                                                                        48.3                    %            47.5                    %      0.8 %   *                              48.1                    %           48.8                    %     (0.7 )% *
Outpatient Visits
 Total visits                                                                                   1,901,864                            1,950,549                          (2.5 )%                            7,791,125                           8,144,473                          (4.3 )%
 Paying visits (excludes charity and uninsured)                                                 1,777,790                            1,834,844                          (3.1 )%                            7,277,514                           7,577,799                          (4.0 )%
 Charity and uninsured visits                                                                     124,074                              115,705                           7.2 %                               513,611                             566,674                          (9.4 )%
 Emergency department visits                                                                      711,268                              701,100                           1.5 %                             2,854,200                           2,914,421                          (2.1 )%
 Paying visits as a percentage of total visits                                                       93.5                    %            94.1                    %     (0.6 )%  *                              93.4                    %           93.0                    %      0.4 %  *
 Charity and uninsured visits as a percentage of total visits                                         6.5                    %             5.9                    %      0.6 %   *                               6.6                    %            7.0                    %     (0.4 )% *
 Total emergency department admissions and visits                                                 835,155                              821,649                           1.6 %                             3,346,860                           3,413,756                          (2.0 )%
Revenues
 Net inpatient revenues                                                                          $  2,721                             $  2,606                           4.4 %                              $ 10,319                            $ 10,619                          (2.8 )%
 Net outpatient revenues                                                                         $  1,450                             $  1,457                          (0.5 )%                             $  5,869                            $  5,848                           0.4 %
  Total patient revenues                                                                         $  4,171                             $  4,063                           2.7 %                              $ 16,188                            $ 16,467                          (1.7 )%
Revenues on a Per Admission, Per Patient Day and Per Visit Basis
 Net inpatient revenue per admission                                                             $ 14,614                             $ 13,566                           7.7 %                              $ 13,598                            $ 13,405                           1.4 %
 Net inpatient revenue per patient day                                                           $  3,172                             $  2,934                           8.1 %                              $  2,941                            $  2,878                           2.2 %
 Net outpatient revenue per visit                                                                $    762                             $    747                           2.0 %                              $    753                            $    718                           4.9 %
 Net patient revenue per adjusted patient admission                                              $ 12,539                             $ 11,988                           4.6 %                              $ 11,953                            $ 11,849                           0.9 %
 Net patient revenue per adjusted patient day                                                    $  2,771                             $  2,632                           5.3 %                              $  2,626                            $  2,575                           2.0 %
Total selected operating expenses (salaries, wages and benefits,                                 $ 10,492                             $ 10,264                           2.2 %                              $ 10,384                            $ 10,176                           2.0 %
supplies and other operating expenses) per adjusted patient admission(2)
Net Patient Revenues from:
 Medicare                                                                                            18.9                    %            20.4                    %     (1.5 )%  *                              20.0                    %           20.5                    %     (0.5 )% *
 Medicaid                                                                                            11.9                    %             8.2                    %      3.7 %   *                               8.1                    %            8.2                    %     (0.1 )% *
 Managed care                                                                                        59.6                    %            61.4                    %     (1.8 )%  *                              61.7                    %           61.5                    %      0.2 %  *
 Indemnity, self-pay and other                                                                        9.6                    %            10.0                    %     (0.4 )%  *                              10.2                    %            9.8                    %      0.4 %  *
                                                                                                                                                                                                                                                                                           
(1)  Represents the consolidated results of Tenet’s acute care hospitals
     and related outpatient facilities included in the Hospital
     Operations and other segment.
(2)  Excludes operating expenses from Tenet’s health plans.
  *  This change is the difference between the 2017 and 2016 amounts
     shown.
     
                                                                                                                                                                         
                                                                                                                                                  TENET HEALTHCARE CORPORATION
                                                                                                                                 SELECTED STATISTICS - CONTINUING SAME HOSPITALS(1)
                                                                                                                                                           (Unaudited)
                                                                                                                                                                                                                                                                                                            
(Dollars in millions except per patient day, per admission, per                                                           Three Months Ended December 31,                                                                                        Years Ended December 31,
adjusted admission and per visit amounts)
                                                                                           -----------------------------------------------------------------------------------                                  ---------------------------------------------------------------------------------
                                                                                    2017                       2016              Change                            2017                      2016              Change
                                                                      ---------------------------------                     ----------------                     -------------------       ---------------------------------                     ---------------                     -------------------
                                                                                                                                                                                                                                                                                                            
Admissions, Patient Days and Surgeries
 Number of hospitals (at end of period)                                                             72                                   72                          --     *                                72                                  72                          --    *
 Total admissions                                                                              184,877                              184,561                                     0.2 %                               738,528                             753,673                                    (2.0 )%
 Adjusted patient admissions                                                                   324,495                              320,445                                     1.3 %                             1,294,913                           1,310,962                                    (1.2 )%
 Paying admissions (excludes charity and uninsured)                                            175,025                              175,026                          -- %                               699,613                             715,198                                    (2.2 )%
 Charity and uninsured admissions                                                                9,852                                9,535                                     3.3 %                                38,915                              38,475                                     1.1 %
 Admissions through emergency department                                                       123,102                              116,374                                     5.8 %                               480,180                             476,068                                     0.9 %
 Paying admissions as a percentage of total admissions                                            94.7                    %            94.8                    %               (0.1 )%  *                              94.7                    %           94.9                    %               (0.2 )% *
 Charity and uninsured admissions as a percentage of total admissions                              5.3                    %             5.2                    %                0.1 %   *                               5.3                    %            5.1                    %                0.2 %  *
 Emergency department admissions as a percentage of total admissions                              66.6                    %            63.1                    %                3.5 %   *                              65.0                    %           63.2                    %                1.8 %  *
 Surgeries -- inpatient                                                             50,070                               50,971                                    (1.8 )%                              199,871                             207,609                                    (3.7 )%
 Surgeries -- outpatient                                                            68,432                               71,129                                    (3.8 )%                              271,228                             286,761                                    (5.4 )%
  Total surgeries                                                                              118,502                              122,100                                    (2.9 )%                              471,099                             494,370                                    (4.7 )%
 Patient days -- total                                                             853,217                              857,118                                    (0.5 )%                            3,423,934                           3,515,087                                    (2.6 )%
 Adjusted patient days                                                                       1,485,209                            1,481,787                                     0.2 %                             5,964,002                           6,080,456                                    (1.9 )%
 Average length of stay (days)                                                                    4.62                                 4.64                                    (0.4 )%                                 4.64                                4.66                                    (0.4 )%
 Licensed beds (at end of period)                                                               19,035                               19,306                                    (1.4 )%                               19,035                              19,306                                    (1.4 )%
 Average licensed beds                                                                          19,214                               19,278                                    (0.3 )%                               19,277                              19,315                                    (0.2 )%
 Utilization of licensed beds                                                                     48.3                    %            48.3                    %     -- %   *                              48.7                    %           49.9                    %               (1.2 )% *
Outpatient Visits
 Total visits                                                                                1,865,781                            1,869,272                                    (0.2 )%                            7,495,754                           7,697,302                                    (2.6 )%
 Paying visits (excludes charity and uninsured)                                              1,747,285                            1,757,013                                    (0.6 )%                            7,028,688                           7,200,453                                    (2.4 )%
 Charity and uninsured visits                                                                  118,496                              112,259                                     5.6 %                               467,066                             496,849                                    (6.0 )%
 Emergency department visits                                                                   676,705                              650,573                                     4.0 %                             2,664,448                           2,689,519                                    (0.9 )%
 Paying visits as a percentage of total visits                                                    93.6                    %            94.0                    %               (0.4 )%  *                              93.8                    %           93.5                    %                0.3 %  *
 Charity and uninsured visits as a percentage of total visits                                      6.4                    %             6.0                    %                0.4 %   *                               6.2                    %            6.5                    %               (0.3 )% *
 Total emergency department admissions and visits                                              799,807                              766,947                                     4.3 %                             3,144,628                           3,165,587                                    (0.7 )%
Revenues
 Net inpatient revenues                                                                       $  2,695                             $  2,518                                     7.0 %                              $ 10,037                            $ 10,089                                    (0.5 )%
 Net outpatient revenues                                                                      $  1,431                             $  1,371                                     4.4 %                              $  5,626                            $  5,452                                     3.2 %
  Total patient revenues                                                                      $  4,126                             $  3,889                                     6.1 %                              $ 15,663                            $ 15,541                                     0.8 %
Revenues on a Per Admission, Per Patient Day and Per Visit Basis
 Net inpatient revenue per admission                                                          $ 14,577                             $ 13,643                                     6.8 %                              $ 13,591                            $ 13,386                                     1.5 %
 Net inpatient revenue per patient day                                                        $  3,159                             $  2,938                                     7.5 %                              $  2,931                            $  2,870                                     2.1 %
 Net outpatient revenue per visit                                                             $    767                             $    733                                     4.6 %                              $    751                            $    708                                     6.1 %
 Net patient revenue per adjusted patient admission                                           $ 12,715                             $ 12,136                                     4.8 %                              $ 12,096                            $ 11,855                                     2.0 %
 Net patient revenue per adjusted patient day                                                 $  2,778                             $  2,625                                     5.8 %                              $  2,626                            $  2,556                                     2.7 %
Net Patient Revenues from:
 Medicare                                                                                         18.9                    %            20.8                    %               (1.9 )%  *                              20.3                    %           21.0                    %               (0.7 )% *
 Medicaid                                                                                         12.1                    %             8.2                    %                3.9 %   *                               8.1                    %            8.2                    %               (0.1 )% *
 Managed care                                                                                     59.3                    %            61.2                    %               (1.9 )%  *                              61.6                    %           61.6                    %     -- %  *
 Indemnity, self-pay and other                                                                     9.7                    %             9.8                    %               (0.1 )%  *                              10.0                    %            9.2                    %                0.8 %  *
                                                                                                                                                                                                                                                                                                            
(1)  Information for our Hospital Operations and other segment is
     presented on a same-hospital basis, which includes the results of
     our same 72 hospitals operated throughout the twelve months ended
     December 31, 2017 and 2016, and associated outpatient facilities but
     excludes the results of hospitals that Tenet began operating, as
     well as hospitals Tenet divested, since January 1, 2016.
  *  This change is the difference between the 2017 and 2016 amounts
     shown.
     
                                                                                                                                                                                                                                                                                     
                                                                                                                                                                  TENET HEALTHCARE CORPORATION
                                                                                                                                                              CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                           (Unaudited)
                                                                                                                                                                                                                                                                                                                             
(Dollars in millions except per share amounts)                                                                                                                                         Three Months Ended                                                                                                                                Year Ended
                                                                                          -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------
                                                                                                        3/31/2017                           6/30/2017                           9/30/2017                             12/31/2017                                                12/31/2017
                                                                                          -------------------------------------                     -------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------
Net operating revenues:
 Net operating revenues before provision for doubtful accounts                                  $   5,196                                             $ 5,173                                                 $   4,941                                                 $   5,303                                                 $  20,613
 Less: Provision for doubtful accounts                                                                383                              371                                    355                                    325                                  1,434  
                                                                                          ------------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net operating revenues                                                                              4,813                                               4,802                                                     4,586                                                     4,978                                                    19,179
Equity in earnings of unconsolidated affiliates                                                        29                                                  28                                                        38                                                        49                                                       144
Operating expenses:
 Salaries, wages and benefits                                                                       2,380                                               2,346                                                     2,264                                                     2,284                                                     9,274
 Supplies                                                                                             765                                                 780                                                       740                                                       800                                                     3,085
 Other operating expenses, net                                                                      1,187                                               1,159                                                     1,120                                                     1,104                                                     4,570
 Electronic health record incentives                                                                   (1 )                                                (6 )                                                      (1 )                                                      (1 )                                                      (9 )
 Depreciation and amortization                                                                        221                                                 222                                                       219                                                       208                                                       870
 Impairment and restructuring charges, and acquisition-related costs                                   33                                                  41                                                       329                                                       138                                                       541
 Litigation and investigation costs                                                                     5                                                   1                                                         6                                                        11                                                        23
Gains on sales, consolidation and deconsolidation of facilities                                       (15 )                                               (23 )                                                    (104 )                                                      (2 )                                                    (144 )
                                                                                          ------------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Operating income                                                                                      267                                                 310                                                        51                                                       485                                                     1,113
Interest expense                                                                                     (258 )                                              (260 )                                                    (257 )                                                    (253 )                                                  (1,028 )
Other non-operating expense, net                                                                       (5 )                                                (5 )                                                      (4 )                                                      (8 )                                                     (22 )
Loss from early extinguishment of debt                                                     --                              (26 )                                                    (138 )                                          --                                   (164 )
                                                                                          ------------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Income (loss) from continuing operations, before income taxes                                           4                                                  19                                                      (348 )                                                     224                                                      (101 )
Income tax benefit (expense)                                                                           33                               12                                     60                                   (324 )                                                    (219 )
                                                                                          ------------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Income (loss) from continuing operations, before discontinued                                          37                                                  31                                                      (288 )                                                    (100 )                                                    (320 )
operations
Discontinued operations:
 Income (loss) from operations                                                                         (2 )                                                 2                                                        (1 )                                                       1                                            --
 Income tax benefit (expense)                                                                           1                               (1 )                                          --                         --                         --  
                                                                                          ------------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Income (loss) from discontinued operations                                                             (1 )                                                 1                                     (1 )                                                       1                         --  
                                                                                          ------------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net income (loss)                                                                                      36                                                  32                                                      (289 )                                                     (99 )                                                    (320 )
 Less: Net income attributable to noncontrolling interests                                             89                               87                                     78                                    130                                    384  
                                                                                          ------------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net loss attributable to Tenet Healthcare Corporation common                                    $     (53 )                                           $   (55 )                                               $    (367 )                                               $    (229 )                                               $    (704 )
shareholders
                                                                                          ======= ======= ====================                      === ===== ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
Amounts attributable to Tenet Healthcare Corporation common
shareholders
 Loss from continuing operations, net of tax                                                    $     (52 )                                           $   (56 )                                               $    (366 )                                               $    (230 )                                               $    (704 )
 Income (loss) from discontinued operations, net of tax                                                (1 )                                                 1                                     (1 )                                                       1                         --  
                                                                                          ------------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net loss attributable to Tenet Healthcare Corporation common                                    $     (53 )                                           $   (55 )                                               $    (367 )                                               $    (229 )                                               $    (704 )
shareholders
                                                                                          ======= ======= ====================                      === ===== ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
Earnings (loss) per share attributable to Tenet Healthcare
Corporation common shareholders:
  Basic
   Continuing operations                                                                        $   (0.52 )                                           $ (0.56 )                                               $   (3.63 )                                               $   (2.28 )                                               $   (7.00 )
   Discontinued operations                                                                          (0.01 )                                              0.01                                  (0.01 )                                                    0.01                         --  
                                                                                          ------------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                $   (0.53 )                                           $ (0.55 )                                               $   (3.64 )                                               $   (2.27 )                                               $   (7.00 )
                                                                                          ======= ======= ====================                      === ===== ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
  Diluted
   Continuing operations                                                                        $   (0.52 )                                           $ (0.56 )                                               $   (3.63 )                                               $   (2.28 )                                               $   (7.00 )
   Discontinued operations                                                                          (0.01 )                                              0.01                                  (0.01 )                                                    0.01                         --  
                                                                                          ------------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                $   (0.53 )                                           $ (0.55 )                                               $   (3.64 )                                               $   (2.27 )                                               $   (7.00 )
                                                                                          ======= ======= ====================                      === ===== ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
Weighted average shares and dilutive securities outstanding in
thousands):
   Basic                                                                                          100,000                                             100,612                                                   100,812                                                   100,945                                                   100,592
   Diluted                                                                                        100,000                                             100,612                                                   100,812                                                   100,945                                                   100,592
                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                           
                                                                                                                            TENET HEALTHCARE CORPORATION
                                                                                                          SELECTED STATISTICS - CONTINUING TOTAL HOSPITALS(1)
                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                   
(Dollars in millions except per patient day, per admission, per                                                                                     Three Months Ended                                                                                        Year Ended
adjusted admission and per visit amounts)
                                                                                              ----------------------------------------------------------------------------------------------------------------                                    --------------------------------
                                                                                     3/31/2017                  6/30/2017         9/30/2017        12/31/2017                   12/31/2017
                                                                         ---------------------------------                     ----------------                     ----------------                     ----------------    -----------------------------------
                                                                                                                                                                                                                                                   
Admissions, Patient Days and Surgeries
 Number of hospitals (at end of period)                                                                76                                   76                                   73                                   72                                     72
 Total admissions                                                                                 196,907                              190,394                              185,389                              186,185                                758,875
 Adjusted patient admissions                                                                      347,150                              342,439                              332,035                              332,642                              1,354,266
 Paying admissions (excludes charity and uninsured)                                               186,648                              179,889                              174,803                              176,158                                717,498
 Charity and uninsured admissions                                                                  10,259                               10,505                               10,586                               10,027                                 41,377
 Admissions through emergency department                                                          126,473                              121,807                              120,493                              123,887                                492,660
 Paying admissions as a percentage of total admissions                                               94.8                    %            94.5                    %            94.3                    %            94.6 %                                 94.5 %
 Charity and uninsured admissions as a percentage of total admissions                                 5.2                    %             5.5                    %             5.7                    %             5.4 %                                  5.5 %
 Emergency department admissions as a percentage of total admissions                                 64.2                    %            64.0                    %            65.0                    %            66.5 %                                 64.9 %
 Surgeries -- inpatient                                                                51,800                               52,083                               50,939                               50,292                                205,114
 Surgeries -- outpatient                                                               69,604                               71,366                               67,321                               68,604                                276,895
 Total surgeries                                                                                  121,404                              123,449                              118,260                              118,896                                482,009
 Patient days -- total                                                                923,339                              874,930                              853,059                              857,728                              3,509,056
 Adjusted patient days                                                                          1,603,698                            1,552,302                            1,502,831                            1,505,130                              6,163,961
 Average length of stay (days)                                                                       4.69                                 4.60                                 4.60                                 4.61                                   4.62
 Licensed beds (at end of period)                                                                  20,439                               20,435                               19,433                               19,141                                 19,141
 Average licensed beds                                                                             20,440                               20,435                               19,783                               19,320                                 19,995
 Utilization of licensed beds                                                                        50.2                    %            47.0                    %            46.9                    %            48.3 %                                 48.1 %
Outpatient Visits
 Total visits                                                                                   2,039,942                            1,981,848                            1,867,471                            1,901,864                              7,791,125
 Paying visits (excludes charity and uninsured)                                                 1,908,212                            1,849,697                            1,741,815                            1,777,790                              7,277,514
 Charity and uninsured visits                                                                     131,730                              132,151                              125,656                              124,074                                513,611
 Emergency department visits                                                                      733,051                              724,785                              685,096                              711,268                              2,854,200
 Paying visits as a percentage of total visits                                                       93.5                    %            93.3                    %            93.3                    %            93.5 %                                 93.4 %
 Charity and uninsured visits as a percentage of total visits                                         6.5                    %             6.7                    %             6.7                    %             6.5 %                                  6.6 %
 Total emergency department admissions and visits                                                 859,524                              846,592                              805,589                              835,155                              3,346,860
Revenues
 Net inpatient revenues                                                                          $  2,609                             $  2,555                             $  2,434                             $  2,721                               $ 10,319
 Net outpatient revenues                                                                         $  1,482                             $  1,511                             $  1,426                             $  1,450                               $  5,869
  Total patient revenues                                                                         $  4,091                             $  4,066                             $  3,860                             $  4,171                               $ 16,188
Revenues on a Per Admission, Per Patient Day and Per Visit Basis
 Net inpatient revenue per admission                                                             $ 13,250                             $ 13,420                             $ 13,129                             $ 14,614                               $ 13,598
 Net inpatient revenue per patient day                                                           $  2,826                             $  2,920                             $  2,853                             $  3,172                               $  2,941
 Net outpatient revenue per visit                                                                $    726                             $    762                             $    764                             $    762                               $    753
 Net patient revenue per adjusted patient admission                                              $ 11,785                             $ 11,874                             $ 11,625                             $ 12,539                               $ 11,953
 Net patient revenue per adjusted patient day                                                    $  2,551                             $  2,619                             $  2,568                             $  2,771                               $  2,626
Total selected operating expenses (salaries, wages and benefits,                                 $ 10,290                             $ 10,394                             $ 10,367                             $ 10,492                               $ 10,384
supplies and other operating expenses) per adjusted patient admission(2)
Net Patient Revenues from:
 Medicare                                                                                            21.0                    %            20.1                    %            20.0                    %            18.9 %                                 20.0 %
 Medicaid                                                                                             6.7                    %             6.9                    %             6.5                    %            11.9 %                                  8.1 %
 Managed care                                                                                        62.3                    %            62.5                    %            62.5                    %            59.6 %                                 61.7 %
 Indemnity, self-pay and other                                                                       10.0                    %            10.5                    %            11.0                    %             9.6 %                                 10.2 %
                                                                                                                                                                                                                                                                 
(1)  Represents the consolidated results of Tenet’s acute care hospitals
     and related outpatient facilities included in the Hospital
     Operations and other segment.
(2)  Excludes operating expenses from Tenet’s health plans.
     
                                                                                                                                                                                     
                                                                                                                           TENET HEALTHCARE CORPORATION
                                                                                                          SELECTED STATISTICS - CONTINUING SAME HOSPITALS(1)
                                                                                                                                    (Unaudited)
                                                                                                                                                                                                                                                
(Dollars in millions except per patient day, per admission, per                                                                                  Three Months Ended                                                                                        Year Ended
adjusted admission and per visit amounts)
                                                                                           ----------------------------------------------------------------------------------------------------------------                                    --------------------------------
                                                                                  3/31/2017                  6/30/2017         9/30/2017                  12/31/2017                            12/31/2017
                                                                      ---------------------------------                     ----------------                     ----------------    ---------------------------------    -----------------------------------
                                                                                                                                                                                                                                                
Admissions, Patient Days and Surgeries
 Number of hospitals (at end of period)                                                             72                                   72                                   72                                   72                                     72
 Total admissions                                                                              189,071                              182,610                              181,970                              184,877                                738,528
 Adjusted patient admissions                                                                   326,533                              323,064                              320,821                              324,495                              1,294,913
 Paying admissions (excludes charity and uninsured)                                            179,763                              173,034                              171,791                              175,025                                699,613
 Charity and uninsured admissions                                                                9,308                                9,576                               10,179                                9,852                                 38,915
 Admissions through emergency department                                                       121,749                              116,968                              118,361                              123,102                                480,180
 Paying admissions as a percentage of total admissions                                            95.1                    %            94.8                    %            94.4 %                               94.7 %                                 94.7 %
 Charity and uninsured admissions as a percentage of total admissions                              4.9                    %             5.2                    %             5.6 %                                5.3 %                                  5.3 %
 Emergency department admissions as a percentage of total admissions                              64.4                    %            64.1                    %            65.0 %                               66.6 %                                 65.0 %
 Surgeries -- inpatient                                                             49,735                               49,992                               50,074                               50,070                                199,871
 Surgeries -- outpatient                                                            67,375                               68,939                               66,482                               68,432                                271,228
 Total surgeries                                                                               117,110                              118,931                              116,556                              118,502                                471,099
 Patient days -- total                                                             889,667                              842,835                              838,215                              853,217                              3,423,934
 Adjusted patient days                                                                       1,527,316                            1,485,211                            1,466,266                            1,485,209                              5,964,002
 Average length of stay (days)                                                                    4.71                                 4.62                                 4.61                                 4.62                                   4.64
 Licensed beds (at end of period)                                                               19,285                               19,281                               19,327                               19,035                                 19,035
 Average licensed beds                                                                          19,286                               19,281                               19,328                               19,214                                 19,277
 Utilization of licensed beds                                                                     51.3                    %            48.0                    %            47.1 %                               48.3 %                                 48.7 %
Outpatient Visits
 Total visits                                                                                1,937,168                            1,879,210                            1,813,595                            1,865,781                              7,495,754
 Paying visits (excludes charity and uninsured)                                              1,821,837                            1,763,098                            1,696,468                            1,747,285                              7,028,688
 Charity and uninsured visits                                                                  115,331                              116,112                              117,127                              118,496                                467,066
 Emergency department visits                                                                   674,547                              666,865                              646,331                              676,705                              2,664,448
 Paying visits as a percentage of total visits                                                    94.0                    %            93.8                    %            93.5 %                               93.6 %                                 93.8 %
 Charity and uninsured visits as a percentage of total visits                                      6.0                    %             6.2                    %             6.5 %                                6.4 %                                  6.2 %
 Total emergency department admissions and visits                                              796,296                              783,833                              764,692                              799,807                              3,144,628
Revenues
 Net inpatient revenues                                                                       $  2,505                             $  2,446                             $  2,391                             $  2,695                               $ 10,037
 Net outpatient revenues                                                                      $  1,390                             $  1,419                             $  1,386                             $  1,431                               $  5,626
 Total patient revenues                                                                       $  3,895                             $  3,865                             $  3,777                             $  4,126                               $ 15,663
Revenues on a Per Admission, Per Patient Day and Per Visit Basis
 Net inpatient revenue per admission                                                          $ 13,249                             $ 13,395                             $ 13,140                             $ 14,577                               $ 13,591
 Net inpatient revenue per patient day                                                        $  2,816                             $  2,902                             $  2,852                             $  3,159                               $  2,931
 Net outpatient revenue per visit                                                             $    718                             $    755                             $    764                             $    767                               $    751
 Net patient revenue per adjusted patient admission                                           $ 11,928                             $ 11,964                             $ 11,773                             $ 12,715                               $ 12,096
 Net patient revenue per adjusted patient day                                                 $  2,550                             $  2,602                             $  2,576                             $  2,778                               $  2,626
Net Patient Revenues from:
 Medicare                                                                                         21.6                    %            20.6                    %            20.1 %                               18.9 %                                 20.3 %
 Medicaid                                                                                          6.8                    %             6.8                    %             6.6 %                               12.1 %                                  8.1 %
 Managed care                                                                                     62.2                    %            62.6                    %            62.3 %                               59.3 %                                 61.6 %
 Indemnity, self-pay and other                                                                     9.4                    %            10.0                    %            11.0 %                                9.7 %                                 10.0 %
                                                                                                                                                                                                                                                              
(1)  Information for our Hospital Operations and other segment is
     presented on a same-hospital basis, which includes the results of
     our same 72 hospitals operated throughout the twelve months ended
     December 31, 2017 and 2016, and associated outpatient facilities but
     excludes the results of hospitals that Tenet began operating, as
     well as hospitals Tenet divested, since January 1, 2016.
     
                                                                                                                                                                                                        
                                                                                                                           TENET HEALTHCARE CORPORATION
                                                                                                          SELECTED STATISTICS - CONTINUING SAME HOSPITALS(1)
                                                                                                                                    (Unaudited)
                                                                                                                                                                                                                                                
(Dollars in millions except per patient day, per admission, per                                                                                  Three Months Ended                                                                                        Year Ended
adjusted admission and per visit amounts)
                                                                                           ----------------------------------------------------------------------------------------------------------------                                    --------------------------------
                                                                                  3/31/2016                  6/30/2016         9/30/2016        12/31/2016                   12/31/2016
                                                                      ---------------------------------                     ----------------                     ----------------                     ----------------    -----------------------------------
                                                                                                                                                                                                                                                
Admissions, Patient Days and Surgeries
 Number of hospitals (at end of period)                                                             72                                   72                                   72                                   72                                     72
 Total admissions                                                                              195,679                              186,668                              186,765                              184,561                                753,673
 Adjusted patient admissions                                                                   335,006                              327,551                              327,960                              320,445                              1,310,962
 Paying admissions (excludes charity and uninsured)                                            186,706                              177,090                              176,376                              175,026                                715,198
 Charity and uninsured admissions                                                                8,973                                9,578                               10,389                                9,535                                 38,475
 Admissions through emergency department                                                       125,406                              118,054                              116,234                              116,374                                476,068
 Paying admissions as a percentage of total admissions                                            95.4                    %            94.9                    %            94.4                    %            94.8 %                                 94.9 %
 Charity and uninsured admissions as a percentage of total admissions                              4.6                    %             5.1                    %             5.6                    %             5.2 %                                  5.1 %
 Emergency department admissions as a percentage of total admissions                              64.1                    %            63.2                    %            62.2                    %            63.1 %                                 63.2 %
 Surgeries - inpatient                                                                          51,719                               52,363                               52,556                               50,971                                207,609
 Surgeries - outpatient                                                                         72,054                               73,372                               70,206                               71,129                                286,761
 Total surgeries                                                                               123,773                              125,735                              122,762                              122,100                                494,370
 Patient days - total                                                                          929,061                              865,808                              863,100                              857,118                              3,515,087
 Adjusted patient days                                                                       1,579,483                            1,510,969                            1,508,217                            1,481,787                              6,080,456
 Average length of stay (days)                                                                    4.75                                 4.64                                 4.62                                 4.64                                   4.66
 Licensed beds (at end of period)                                                               19,332                               19,332                               19,292                               19,306                                 19,306
 Average licensed beds                                                                          19,327                               19,332                               19,319                               19,278                                 19,315
 Utilization of licensed beds                                                                     53.4                    %            49.2                    %            48.6                    %            48.3 %                                 49.9 %
Outpatient Visits
 Total visits                                                                                1,969,133                            1,945,124                            1,913,773                            1,869,272                              7,697,302
 Paying visits (excludes charity and uninsured)                                              1,841,053                            1,819,407                            1,782,980                            1,757,013                              7,200,453
 Charity and uninsured visits                                                                  128,080                              125,717                              130,793                              112,259                                496,849
 Emergency department visits                                                                   702,777                              673,544                              662,625                              650,573                              2,689,519
 Paying visits as a percentage of total visits                                                    93.5                    %            93.5                    %            93.2                    %            94.0 %                                 93.5 %
 Charity and uninsured visits as a percentage of total visits                                      6.5                    %             6.5                    %             6.8                    %             6.0 %                                  6.5 %
 Total emergency department admissions and visits                                              828,183                              791,598                              778,859                              766,947                              3,165,587
Revenues
 Net inpatient revenues                                                                       $  2,568                             $  2,470                             $  2,533                             $  2,518                               $ 10,089
 Net outpatient revenues                                                                      $  1,370                             $  1,377                             $  1,334                             $  1,371                               $  5,452
 Total patient revenues                                                                       $  3,938                             $  3,847                             $  3,867                             $  3,889                               $ 15,541
Revenues on a Per Admission, Per Patient Day and Per Visit Basis
 Net inpatient revenue per admission                                                          $ 13,124                             $ 13,232                             $ 13,562                             $ 13,643                               $ 13,386
 Net inpatient revenue per patient day                                                        $  2,764                             $  2,853                             $  2,935                             $  2,938                               $  2,870
 Net outpatient revenue per visit                                                             $    696                             $    708                             $    697                             $    733                               $    708
 Net patient revenue per adjusted patient admission                                           $ 11,755                             $ 11,745                             $ 11,791                             $ 12,136                               $ 11,855
 Net patient revenue per adjusted patient day                                                 $  2,493                             $  2,546                             $  2,564                             $  2,625                               $  2,556
Net Patient Revenues from:
 Medicare                                                                                         20.4                    %            22.3                    %            20.5                    %            20.8 %                                 21.0 %
 Medicaid                                                                                          8.7                    %             7.6                    %             8.4                    %             8.2 %                                  8.2 %
 Managed care                                                                                     61.7                    %            59.5                    %            64.3                    %            61.2 %                                 61.6 %
 Indemnity, self-pay and other                                                                     9.2                    %            10.6                    %             6.8                    %             9.8 %                                  9.2                    %
                                                                                                                                                                                                                                                              
(1)  Information for our Hospital Operations and other segment is
     presented on a same-hospital basis, which includes the results of
     our same 72 hospitals operated throughout the twelve months ended
     December 31, 2017 and 2016, and associated outpatient facilities but
     excludes the results of hospitals that Tenet began operating, as
     well as hospitals Tenet divested, since January 1, 2016.
     
                                                                                                                                                                           
                                                                                                                               TENET HEALTHCARE CORPORATION
                                                                                                                                     SEGMENT REPORTING
                                                                                                                                        (Unaudited)
                                                                                                                                                                                                                                                         
(Dollars in millions)                                                                                                                                                                                       December 31,                                           December 31,
                                                                                                                                                                                                                2017                                                   2016
                                                                                                                                                                                                  ---------------------------------                     -----------------------------------
Assets
   Hospital Operations and other                                                                                                                                                                     $ 16,466                                                $ 17,871
   Ambulatory Care                                                                                                                                                                                      5,822                                                   5,722
   Conifer                                                                                                                                                                                              1,097                                1,108  
                                                                                                                                                                                                  --------------------------------                      ----------------------------------
   Total                                                                                                                                                                                             $ 23,385                             $ 24,701  
                                                                                                                                                                                                  ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                         
                                                                                                                       Three Months Ended                                                                                                Years Ended
                                                                                                                          December 31,                                                                                                  December 31,
                                                                                   ------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------
                                                                                                    2017                                                    2016                                                2017                                                   2016
                                                                                   ---------------------------------------                     ------------------------------                     ---------------------------------                     -----------------------------------
Capital expenditures:
   Hospital Operations and other                                                    $            184                                            $   242                                              $    625                                                $    799
   Ambulatory Care                                                                                23                                                  9                                                    60                                                      51
   Conifer                                                                                         8                              10                                 22                                   25  
                                                                                   --------------------------------------                      -----------------------------                      --------------------------------                      ----------------------------------
   Total                                                                            $            215                         $   261                           $    707                             $    875  
                                                                                   == ============== ====================                      == ===== ====================                      ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                         
Net operating revenues:
   Hospital Operations and other total prior to inter-segment                       $          4,194                                            $ 4,143                                              $ 16,260                                                $ 16,904
   eliminations(1)
   Ambulatory Care                                                                               545                                                478                                                 1,940                                                   1,797
   Conifer
       Tenet                                                                                     155                                                163                                                   618                                                     651
       Other clients                                                                             239                             239                                979                                  920  
                                                                                   --------------------------------------                      -----------------------------                      --------------------------------                      ----------------------------------
       Total Conifer revenues                                                                    394                                                402                                                 1,597                                                   1,571
   Inter-segment eliminations                                                                   (155 )                                             (163 )                                                (618 )                                                  (651 )
                                                                                   --------------------------------------                      -----------------------------                      --------------------------------                      ----------------------------------
   Total                                                                            $          4,978                         $ 4,860                           $ 19,179                             $ 19,621  
                                                                                   == ============== ====================                      == ===== ====================                      ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                         
Equity in earnings of unconsolidated affiliates:
   Hospital Operations and other                                                    $ --                                            $     3                                              $      4                                                $      9
   Ambulatory Care                                                                                49                              43                                140                                  122  
                                                                                   --------------------------------------                      -----------------------------                      --------------------------------                      ----------------------------------
   Total                                                                            $             49                         $    46                           $    144                             $    131  
                                                                                   == ============== ====================                      == ===== ====================                      ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                         
Adjusted EBITDA:
   Hospital Operations and other(2)                                                 $            538                                            $   395                                              $  1,462                                                $  1,586
   Ambulatory Care                                                                               223                                                183                                                   699                                                     615
   Conifer                                                                                        79                              72                                283                                  277  
                                                                                   --------------------------------------                      -----------------------------                      --------------------------------                      ----------------------------------
   Total                                                                            $            840                         $   650                           $  2,444                             $  2,478  
                                                                                   == ============== ====================                      == ===== ====================                      ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                         
Depreciation and amortization:
   Hospital Operations and other                                                    $            176                                            $   184                                              $    736                                                $    709
   Ambulatory Care                                                                                18                                                 22                                                    84                                                      91
   Conifer                                                                                        14                              12                                 50                                   50  
                                                                                   --------------------------------------                      -----------------------------                      --------------------------------                      ----------------------------------
   Total                                                                            $            208                         $   218                           $    870                             $    850  
                                                                                   == ============== ====================                      == ===== ====================                      ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                                       
(1)  Hospital Operations and other revenues includes health plan revenues
     of $10 million and $110 million for the three and twelve months
     ended December 31, 2017, respectively and $97 million and $482
     million for the three and twelve months ended December 31, 2016,
     respectively.
(2)  Hospital Operations and other Adjusted EBITDA excludes health plan
     EBITDA of less than one million and $(41) million for the three and
     twelve months ended December 31, 2017, respectively and $(29)
     million and $(37) million for the three and twelve months ended
     December 31, 2016, respectively.
     
                                                                                                                                                                                            
                                                                                                                                         TENET HEALTHCARE CORPORATION
                                                                                                                        STATEMENT OF OPERATIONS - AMBULATORY CARE SEGMENT
                                                                                                                                                  (Unaudited)
                                                                                                                                                                                                                                                                          
(Dollars in millions)                                                                                                                                                                Three Months Ended December 31,
                                                                                           -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        2017                                                                                                                2016
                                                                                           -----------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                          
                                                                                                        Ambulatory                                              Unconsolidated                                              Ambulatory                                              Unconsolidated
                                                                                                          Care as                                                 Affiliates                                                  Care as                                                 Affiliates
                                                                                                         Reported                                                                                                            Reported
                                                                                                           Under                                                                                                               Under
                                                                                                           GAAP                                                                                                                GAAP
                                                                                           ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------
Net operating revenues:
  Net operating revenues before provision for doubtful accounts                                  $     556                                                 $     625                                                 $     487                                                 $     582
  Less: Provision for doubtful accounts                                                                (11 )                                                     (10 )                                                      (9 )                                                     (12 )
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net operating revenues(1)                                                                              545                                                       615                                                       478                                                       570
Equity in earnings of unconsolidated affiliates(2)                                                      49                                            --                                                        43                                            --
Operating expenses:
  Salaries, wages and benefits                                                                         165                                                       131                                                       157                                                       124
  Supplies                                                                                             113                                                       157                                                        99                                                       145
  Other operating expenses, net                                                                         93                                                       104                                                        83                                                       101
  Electronic health record incentives                                                       --                                            --                                                        (1 )                                          --
  Depreciation and amortization                                                                         18                                                        16                                                        22                                                        17
  Impairment and restructuring charges, and acquisition-related costs                                    4                                            --                                                        17                                            --
(Gains) losses on sales, consolidation and deconsolidation of                                           (2 )                                          --                         --                                      4  
facilities
                                                                                           --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
Operating income                                                                                       203                                                       207                                                       144                                                       179
Interest expense                                                                                       (36 )                                                      (5 )                                                     (35 )                                                      (6 )
Other non-operating income (expense), net                                                                1                                     (1 )                                                       2                         --  
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Income from continuing operations, before income taxes                                                 168                                                       201                                                       111                                                       173
Income tax benefit (expense)                                                                            73                                     (3 )                                                     (17 )                                                      (3 )
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net income                                                                                             241                                                 $     198                                     94                                                 $     170  
                                                                                                                                                     ======= ======= ====================                                                                                ======= ======= ====================
  Less: Net income attributable to noncontrolling interests(3)                                         111                                                                                               81  
                                                                                           ------------------------------------                                                                                ------------------------------------
Net income attributable to Tenet Healthcare Corporation common                                   $     130                                                                                        $      13  
shareholders
                                                                                           ======= ======= ====================                                                                                ======= ======= ====================
Equity in earnings of unconsolidated affiliates                                                                                                            $      49                                                                                                           $      43
                                                                                                                                                                                                                                                                                          
(1)  On a same-facility system-wide basis, net revenue in Tenet’s
     Ambulatory Care segment increased 6.9% during the three months ended
     December 31, 2017, with cases increasing 4.6% and revenue per case
     increasing 2.2%.
(2)  At December 31, 2017, 106 of the 333 facilities in the Company’s
     Ambulatory segment were not consolidated based on the nature of the
     segment’s joint venture relationships with physicians and prominent
     healthcare systems. Although revenues of the segment’s
     unconsolidated facilities are not recorded as revenues by the
     Company, equity in earnings of unconsolidated affiliates is
     nonetheless a significant portion of the Company’s overall earnings.
     To help analyze results of operations, management also uses
     system-wide operating measures such as system-wide revenue growth,
     which includes revenues of both consolidated and unconsolidated
     facilities. We control our remaining 227 facilities and account for
     these investments as consolidated subsidiaries
(3)  During the three months ended December 31, 2017, the Company
     recorded $22 million of noncontrolling interests expense on a tax
     benefit of $109 million, as a result of the reduction in the
     corporate income tax rate from 35% to 21%.
     
                                                                                                                                                                                      
                                                                                                                                      TENET HEALTHCARE CORPORATION
                                                                                                                     STATEMENT OF OPERATIONS - AMBULATORY CARE SEGMENT
                                                                                                                                               (Unaudited)
                                                                                                                                                                                                                                                                    
(Dollars in millions)                                                                                                                                                                Years Ended December 31,
                                                                                           -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        2017                                                                                                             2016
                                                                                           -----------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                    
                                                                                                        Ambulatory                                              Unconsolidated                                           Ambulatory                                           Unconsolidated
                                                                                                          Care as                                                 Affiliates                                               Care as                                              Affiliates
                                                                                                         Reported                                                                                                         Reported
                                                                                                           Under                                                                                                            Under
                                                                                                           GAAP                                                                                                             GAAP
                                                                                           ----------------------------------                        ----------------------------------                        ----------------------------                        ----------------------------------
Net operating revenues:
  Net operating revenues before provision for doubtful accounts                                  $   1,978                                                 $   2,117                                             $ 1,833                                                 $   2,073
  Less: Provision for doubtful accounts                                                                (38 )                                                     (41 )                                               (36 )                                                     (53 )
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------                      ------------------------------------
Net operating revenues(1)                                                                            1,940                                                     2,076                                               1,797                                                     2,020
Equity in earnings of unconsolidated affiliates(2)                                                     140                                            --                                                 122                                            --
Operating expenses:
  Salaries, wages and benefits                                                                         623                                                       483                                                 594                                                       477
  Supplies                                                                                             398                                                       540                                                 365                                                       520
  Other operating expenses, net                                                                        360                                                       394                                                 346                                                       404
  Electronic health record incentives                                                       --                                            --                                                  (1 )                                          --
  Depreciation and amortization                                                                         84                                                        65                                                  91                                                        68
  Impairment and restructuring charges, and acquisition-related costs                                   74                                                         1                                                  26                                                         1
(Gains) losses on sales, consolidation and deconsolidation of                                           (9 )                                          --                              (33 )                                                       7  
facilities
                                                                                           --------------  --------------------                      --------------  --------------------                      --------  --------------------                      --------------  --------------------
Operating income                                                                                       550                                                       593                                                 531                                                       543
Interest expense                                                                                      (145 )                                                     (22 )                                              (140 )                                                     (24 )
Other non-operating income (expense), net                                                                6                                     (1 )                                                 2                                      6  
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------                      ------------------------------------
Income from continuing operations, before income taxes                                                 411                                                       570                                                 393                                                       525
Income tax benefit (expense)                                                                            15                                     (9 )                                               (54 )                                                      (8 )
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------                      ------------------------------------
Net Income                                                                                             426                                                 $     561                              339                                                 $     517  
                                                                                                                                                     ======= ======= ====================                                                                          ======= ======= ====================
 Less: Net income attributable to noncontrolling interests(3)                                          304                                                                                        285  
                                                                                           ------------------------------------                                                                                ------------------------------
Net income attributable to Tenet Healthcare Corporation common                                   $     122                                                                                    $    54  
shareholders
                                                                                           ======= ======= ====================                                                                                === ===== ====================
Equity in earnings of unconsolidated affiliates                                                                                                            $     140                                                                                                     $     122
                                                                                                                                                                                                                                                                                    
(1)  On a same-facility system-wide basis, net revenue in Tenet’s
     Ambulatory Care segment increased 4.6% during the twelve months
     ended December 31, 2017, with cases increasing 0.6% and revenue per
     case increasing 3.9%.
(2)  At December 31, 2017, 106 of the 333 facilities in the Company’s
     Ambulatory segment were not consolidated based on the nature of the
     segment’s joint venture relationships with physicians and prominent
     healthcare systems. Although revenues of the segment’s
     unconsolidated facilities are not recorded as revenues by the
     Company, equity in earnings of unconsolidated affiliates is
     nonetheless a significant portion of the Company’s overall earnings.
     To help analyze results of operations, management also uses
     system-wide operating measures such as system-wide revenue growth,
     which includes revenues of both consolidated and unconsolidated
     facilities. We control our remaining 227 facilities and account for
     these investments as consolidated subsidiaries.
(3)  During the twelve months ended December 31, 2017, the Company
     recorded $22 million of noncontrolling interests expense on a tax
     benefit of $109 million, as a result of the reduction in the
     corporate income tax rate from 35% to 21%. During the twelve months
     ended December 31, 2016, the Company recorded $14 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,
     net of $26 million of impairment and restructuring charges, and
     acquisition-related costs not included in Adjusted EBITDA.
     

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) other non-operating income (expense), net, (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, (11) depreciation and amortization and (12) income (loss) from divested operations and closed businesses (i.e., the Company’s health plan businesses). Litigation and investigation costs do not include ordinary course of business malpractice and other litigation and related expense.

Adjusted net income (loss) from continuing operations attributable to Tenet Healthcare Corporation common shareholders, 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) gain (loss) from early extinguishment of debt, (5) income (loss) from divested operations and closed businesses, (6) the associated impact of these five items on taxes and noncontrolling interests, and (7) income (loss) from discontinued operations. Adjusted diluted earnings (loss) per share from continuing operations, a non-GAAP term, is defined by the Company as Adjusted net income (loss) from continuing operations attributable to Tenet Healthcare Corporation common shareholders divided by the weighted average primary or diluted shares outstanding in the reporting period.

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

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

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

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

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

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

A reconciliation of 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 twelve months ended December 31, 2017 and 2016. A reconciliation of Adjusted net income from continuing operations attributable to Tenet Healthcare Corporation common shareholders 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 twelve months ended December 31, 2017 and 2016. 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 twelve months ended December 31, 2017 and 2016.

                                                                                                                                                                                            
                                                                                                                                         TENET HEALTHCARE CORPORATION
                                                                                                                                 Additional Supplemental Non-GAAP disclosures
                                                                                                                     Table #1 - Reconciliation of Adjusted EBITDA to Net Loss
                                                                                                                       Attributable to Tenet Healthcare Corporation Common Shareholders
                                                                                                                                                  (Unaudited)
                                                                                                                                                                                                                                                                          
(Dollars in millions)                                                                                                            Three Months Ended                                                                                                      Years Ended
                                                                                                                                    December 31,                                                                                                        December 31,
                                                                                           -----------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
                                                                                                           2017                                                      2016                                                      2017                                                      2016
                                                                                           -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------
Net loss attributable to Tenet Healthcare Corporation common                                     $    (229 )                                               $     (79 )                                               $    (704 )                                               $    (192 )
shareholders
Less: Net income attributable to noncontrolling interests                                             (130 )                                                    (102 )                                                    (384 )                                                    (368 )
  Income (loss) from discontinued operations, net of tax                                                 1                         --                         --                                     (5 )
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
  Income (loss) from continuing operations                                                            (100 )                                                      23                                                      (320 )                                                     181
  Income tax expense                                                                                  (324 )                                                      (6 )                                                    (219 )                                                     (67 )
  Loss from early extinguishment of debt                                                    --                                            --                                                      (164 )                                          --
  Other non-operating expense, net                                                                      (8 )                                                      (2 )                                                     (22 )                                                     (20 )
  Interest expense                                                                                    (253 )                                                    (249 )                                                  (1,028 )                                                    (979 )
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
  Operating income                                                                                     485                                                       280                                                     1,113                                                     1,247
  Litigation and investigation costs                                                                   (11 )                                                      (2 )                                                     (23 )                                                    (293 )
  Gains on sales, consolidation and deconsolidation of facilities                                        2                                            --                                                       144                                                       151
  Impairment and restructuring charges, and acquisition-related costs                                 (138 )                                                    (121 )                                                    (541 )                                                    (202 )
  Depreciation and amortization                                                                       (208 )                                                    (218 )                                                    (870 )                                                    (850 )
  Loss from divested and closed businesses                                                  --                                    (29 )                                                     (41 )                                                     (37 )
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Adjusted EBITDA                                                                                  $     840                              $     650                              $   2,444                              $   2,478  
                                                                                           ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                          
  Net operating revenues                                                                         $   4,978                                                 $   4,860                                                 $  19,179                                                 $  19,621
  Less: Net operating revenues from health plans                                                        10                                     97                                    110                                    482  
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Adjusted net operating revenues                                                                  $   4,968                              $   4,763                              $  19,069                              $  19,139  
                                                                                           ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                          
Net loss attributable to Tenet Healthcare Corporation common                                          (4.6 )%                                                   (1.6 )%                                                   (3.7 )%                                                   (1.0 )%
shareholders as a % of net operating revenues
                                                                                                                                                                                                                                                                          
Adjusted EBITDA as % of adjusted net operating revenues (Adjusted                                     16.9 %                                                    13.6 %                                                    12.8 %                                                    12.9 %
EBITDA margin)
                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                             
                                                                                                                                         TENET HEALTHCARE CORPORATION
                                                                                                                                 Additional Supplemental Non-GAAP disclosures
                                                                                                                   Table #2 - Pre-Tax, After-Tax and Earnings (Loss) Per Share
                                                                                                                                            Impact of Certain Items
                                                                                                                                           on Continuing Operations
                                                                                                                                                  (Unaudited)
                                                                                                                                                                                                                                                                           
                                                                                                                                  Three Months Ended                                                                                                      Years Ended
(Dollars in millions except per share amounts)                                                                                       December 31,                                                                                                        December 31,
                                                                                            -----------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
                                                                                                            2017                                                      2016                                                      2017                                                      2016
                                                                                            -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------
Adjustments to calculate Adjusted Diluted EPS
Impairment and restructuring charges, and acquisition-related costs(1)                            $    (138 )                                               $    (121 )                                               $    (541 )                                               $    (202 )
Litigation and investigation costs                                                                      (11 )                                                      (2 )                                                     (23 )                                                    (293 )
Gain on sales, consolidation and deconsolidation of facilities(2)                                         2                                            --                                                       144                                                       151
Loss from early extinguishment of debt(3)                                                    --                                            --                                                      (164 )                                          --
Loss from divested and closed businesses                                                     --                                    (28 )                                                     (41 )                                                     (39 )
                                                                                            ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Pre-tax impact                                                                                         (147 )                                                    (151 )                                                    (625 )                                                    (383 )
Tax impact of above items                                                                                49                                                        44                                                       114                                                        81
Tax reform adjustment                                                                                  (252 )                                          --                                   (252 )                                          --  
                                                                                            ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Total after-tax impact                                                                                 (350 )                                                    (107 )                                                    (763 )                                                    (302 )
Noncontrolling interests impact(4)                                                                      (23 )                                                       5                                    (23 )                                                     (14 )
                                                                                            ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Total loss from items above                                                                       $    (373 )                                               $    (102 )                                               $    (786 )                                               $    (316 )
                                                                                            ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                           
Net loss attributable to common shareholders                                                      $    (229 )                                               $     (79 )                                               $    (704 )                                               $    (192 )
Less income (loss) from discontinued operations, net of tax                                               1                         --                         --                                     (5 )
                                                                                            ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Loss from continuing operations, net of tax                                                            (230 )                                                     (79 )                                                    (704 )                                                    (187 )
Loss from adjustments above                                                                             373                                    102                                    786                                    316  
                                                                                            ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Adjusted net income from continuing operations attributable to                                    $     143                              $      23                              $      82                              $     129  
common shareholders
                                                                                            ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                           
Weighted average dilutive shares outstanding (in thousands)                                         101,853                                                   100,928                                                   101,380                                                   100,742
Diluted loss per share from continuing operations                                                 $   (2.28 )                                               $   (0.79 )                                               $   (7.00 )                                               $   (1.88 )
Adjusted diluted earnings per share from continuing operations                                    $    1.40                                                 $    0.23                                                 $    0.81                                                 $    1.28
                                                                                                                                                                                                                                                                                           
(1)  Impairment and restructuring charges, and acquisition-related costs
     of $541 million in the year ended December 31, 2017 were primarily
     related to the write-down of assets held for sale in Chicago,
     Philadelphia and the United Kingdom to their estimated fair value
     less the estimated costs to sell.
(2)  Gain on sales, consolidation and deconsolidation of facilities of
     $144 million in the year ended December 31, 2017 was primarily
     related to a gain on sale of the Company’s former hospitals,
     physician practices and related assets in Houston, Texas.
(3)  Loss from early extinguishment of debt of $164 million in the year
     ended December 31, 2017 was related to the Company’s refinancing
     transactions and debt redemptions.
(4)  During the three months ended December 31, 2017, the Company
     recorded $22 million of noncontrolling interests expense on a tax
     benefit of $109 million, as a result of the reduction in the
     corporate income tax rate from 35% to 21%.
     
                                                                                                                                                                                   
                                                                                                                                   TENET HEALTHCARE CORPORATION
                                                                                                                           Additional Supplemental Non-GAAP disclosures
                                                                                                            Table #3 - Reconciliations of Free Cash Flow and Adjusted Free
                                                                                                                                             Cash Flow
                                                                                                                                            (Unaudited)
                                                                                                                                                                                                                                                                 
                                                                                                                                  Three Months Ended                                                                                             Years Ended
(Dollars in millions)                                                                                                                December 31,                                                                                               December 31,
                                                                                                  -----------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------
                                                                                                               2017                                                2016                                                 2017                                                   2016
                                                                                                  -------------------------------                     -------------------------------                     ---------------------------------                     -----------------------------------
Net cash provided by (used in) operating activities                                                  $  491                                              $ (293 )                                            $  1,200                                                $    558
 Purchases of property and equipment                                                                   (215 )                                              (261 )                                                (707 )                                                  (875 )
                                                                                                  ------------------------------                      ------------------------------                      --------------------------------                      ----------------------------------
Free cash flow                                                                                       $  276                           $ (554 )                                            $    493                             $   (317 )
                                                                                                  ==== ==== ====================                      ==== ==== ====================                      ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                                 
Net cash provided by (used in) investing activities                                                  $ (206 )                                            $ (280 )                                            $     21                                                $   (430 )
Net cash provided by (used in) financing activities                                                  $ (103 )                                            $  640                                              $ (1,326 )                                              $    232
                                                                                                                                                                                                                                                                 
Net cash provided by (used in) operating activities                                                  $  491                                              $ (293 )                                            $  1,200                                                $    558
 Less: Payments for restructuring charges, acquisition-related costs,                                   (37 )                                              (559 )                                                (125 )                                                  (691 )
 and litigation costs and settlements
 Net cash used in operating activities from discontinued operations                                      (2 )                                                (7 )                                                  (5 )                                                    (6 )
                                                                                                  ------------------------------                      ------------------------------                      --------------------------------                      ----------------------------------
Adjusted net cash provided by operating activities - continuing                            530                                                 273                                                 1,330                                                   1,255
operations
 Purchases of property and equipment - continuing operations                              (215 )                                              (261 )                                                (707 )                                                  (875 )
                                                                                                  ------------------------------                      ------------------------------                      --------------------------------                      ----------------------------------
Adjusted free cash flow - continuing operations                                         $  315                           $   12                           $    623                             $    380  
                                                                                                  ==== ==== ====================                      ==== ==== ====================                      ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                                               
                                                                                                                                                                                       
                                                                                                                                      TENET HEALTHCARE CORPORATION
                                                                                                                              Additional Supplemental Non-GAAP disclosures
                                                                                                              Table #4 - Reconciliation of Outlook Adjusted EBITDA to Outlook
                                                                                                                     Net Income (Loss) Attributable to Tenet Healthcare Corporation
                                                                                                                                           Common Shareholders
                                                                                                                                               (Unaudited)
                                                                                                                                                                                                                                                                     
(Dollars in millions, except per share amounts)                                                                                       Q1 2018                                                                                                            2018
                                                                                          -----------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------
                                                                                                           Low                                                      High                                                     Low                                                    High
                                                                                          -------------------------------------                     -------------------------------------                     ---------------------------------                     -------------------------------------
Net income (loss) attributable to Tenet Healthcare Corporation                                  $      45                                                 $      70                                              $     90                                                 $     105
common shareholders
  Less: Net income attributable to noncontrolling interests                                           (90 )                                                    (100 )                                                (415 )                                                    (435 )
      Loss from discontinued operations, net of tax                                                    (5 )                                          --                                 (5 )                                          --  
                                                                                          ------------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
  Income from continuing operations                                                                   140                                                       170                                                   510                                                       540
  Income tax expense                                                                                  (75 )                                                     (80 )                                                (215 )                                                    (220 )
                                                                                          ------------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
  Income from continuing operations, before income taxes                                              215                                                       250                                                   725                                                       760
  Interest expense                                                                                   (250 )                                                    (260 )                                              (1,000 )                                                  (1,010 )
  Loss on early extinguishment of debt                                                     --                                            --                                                    (5 )                                          --
  Other non-operating expense, net                                                                     (5 )                                                      (5 )                                                 (20 )                                                     (25 )
                                                                                          ------------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
  Operating income                                                                                    470                                                       515                                                 1,750                                                     1,795
 Gains on sales, consolidation and deconsolidation of facilities(1)                                   100                                                       120                                                   100                                                       120
 Impairment and restructuring charges, acquisition-related costs and                                  (15 )                                                     (25 )                                                 (50 )                                                    (100 )
 litigation costs and settlements(1)
 Depreciation and amortization                                                                       (195 )                                                    (205 )                                                (790 )                                                    (810 )
 Loss from divested and closed businesses                                                  --                                     (5 )                                                 (10 )                                                     (15 )
                                                                                          ------------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
Adjusted EBITDA                                                                                 $     580                              $     630                           $  2,500                              $   2,600  
                                                                                          ======= ======= ====================                      ======= ======= ====================                      ==== ====== ====================                      ======= ======= ====================
Income from continuing operations                                                               $      50                                                 $      70                                              $     95                                                 $     105
Income from continuing operations as a % of operating revenues                                        1.1 %                                                     1.5 %                                                 0.5 %                                                     0.6 %
Net operating revenues                                                                          $   4,450                                                 $   4,650                                              $ 17,900                                                 $  18,300
Adjusted EBITDA as % of adjusted net operating revenues (Adjusted                                    13.0 %                                                    13.5 %                                                14.0 %                                                    14.2 %
EBITDA margin)
Adjusted EBITDA                                                                                 $     580                                                 $     630                                              $  2,500                                                 $   2,600
 Depreciation and amortization                                                                       (195 )                                                    (205 )                                                (790 )                                                    (810 )
 Interest expense                                                                                    (250 )                                                    (260 )                                              (1,000 )                                                  (1,010 )
 Other non-operating expense, net                                                                      (5 )                                                      (5 )                                                 (20 )                                                     (25 )
                                                                                          ------------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
  Adjusted income from continuing operations before income taxes                                      130                                                       160                                                   690                                                       755
 Income tax benefit (expense)                                                                         (50 )                                                     (55 )                                                (200 )                                                    (210 )
                                                                                          ------------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
  Adjusted income from continuing operations                                                           80                                                       105                                                   490                                                       545
 Net income attributable to noncontrolling interests                                                  (90 )                                                    (100 )                                                (415 )                                                    (435 )
                                                                                          ------------------------------------                      ------------------------------------                      --------------------------------                      ------------------------------------
Adjusted net income (loss) from continuing operations                                           $     (10 )                                               $       5                           $     75                              $     110  
attributable to common shareholders
                                                                                          ======= ======= ====================                      ======= ======= ====================                      ==== ====== ====================                      ======= ======= ====================
Basic weighted average shares outstanding (in millions)                                               101                                                       101                                                   102                                                       102
Fully diluted weighted average shares outstanding (in millions)                                       102                                                       102                                                   103                                                       103
Diluted earnings per share from continuing operations                                           $    0.49                                                 $    0.69                                              $   0.92                                                 $    1.02
Adjusted diluted earnings (loss) per share from continuing                                      $   (0.10 )                                               $    0.05                                              $   0.73                                                 $    1.07
operations
                                                                                                                                                                                                                                                                                     
(1)  The Company has provided an estimate of restructuring charges that
     it anticipates in 2018. The Company does not forecast impairment
     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 are indeterminable at the time the Company provides its
     financial Outlook. Gains on sales, consolidation and deconsolidation
     of facilities includes only an estimate for the MacNeal and Baylor
     joint venture restructuring transactions, which are currently
     expected to close in the first quarter of 2018.
     
                                                                                                                             
                                                                                                                                               TENET HEALTHCARE CORPORATION
                                                                                                                                       Additional Supplemental Non-GAAP disclosures
                                                                                                                         Table #5 - Reconciliation of Outlook Adjusted Free Cash Flow
                                                                                                                                           for the Year Ending December 31, 2018
                                                                                                                                                                                                                                                                                       
(Dollars in millions)                                                                                                                                                                                                                                                       2018
                                                                                                                                                                                                                                 ------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                Low                                                   High
                                                                                                                                                                                                                                 --------------------------------                     -------------------------------------
Net cash provided by operating activities                                                                                                                                                                                           $ 1,245                                                 $   1,450
  Less: Payments for restructuring charges, acquisition-related costs                                                                                                                                                                   (50 )                                                    (100 )
  and litigation costs and settlements(1)
                                                                                                                                                                                                                                         (5 )                                          --  
           Net cash used in operating activities from discontinued operations
                                                                                                                                                                                                                                 ---------  --------------------                      --------------  --------------------
Adjusted net cash provided by operating activities - continuing                                                                                                                                                          1,300                                                     1,550
operations
 Purchases of property and equipment - continuing operations                                                                                                                                                              (625 )                                                    (675 )
                                                                                                                                                                                                                                 -------------------------------                      ------------------------------------
Adjusted free cash flow - continuing operations(2)                                                                                                                                                                     $   675                              $     875  
                                                                                                                                                                                                                                 ==== ===== ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                                       
(1)  The Company has provided an estimate of payments that it anticipates
     in 2018 related to restructuring charges. The Company does not
     forecast payments related to acquisition-related costs and
     litigation costs and settlements because the Company does not
     believe that it can forecast these items with sufficient accuracy
     since some of these items may be indeterminable at the time the
     Company provides its financial Outlook.
(2)  The Company’s definition of Adjusted Free Cash Flow does not include
     other important uses of cash including (1) cash used to purchase
     businesses or joint venture interests, or (2) any items that are
     classified as Cash Flows From Financing Activities on the Company’s
     Consolidated Statement of Cash Flows, including items such as (i)
     cash used to repay borrowings, (ii) distributions paid to
     noncontrolling interests, or (iii) payments under the Put/Call
     Agreement for USPI redeemable noncontrolling interests, which are
     recorded on the Statement of Cash Flows as the purchase of
     noncontrolling interests.
     

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180226006536r1&sid=cmtx6&distro=nx&lang=en

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SOURCE: Tenet Healthcare Corporation

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


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