Tenet Healthcare

Tenet Healthcare Corp.
Tenet Healthcare Corp.
Type	Public company NYSE: THC
Founded	1967
Headquarters	Dallas, TX, USA
Key people	Trevor Fetter, President/CEO; Biggs C. Porter, CFO
Industry	Healthcare
Services	Hospital management
Revenue	▲$8,701,000,000 USD (2006)
Operating income	▼$787,000,000 USD (2006)
Net income	▼$803,000,000 USD (2006)
Employees	74,000 (2005)
Website	http://www.tenethealth.com/
	2006 Consolidated Report

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Tenet Healthcare Corporation (THC) is an operating company that owns and operates 57 hospitals in the United States ^[1]. It is based in Dallas, Texas. Its stock ticker symbol on the New York Stock Exchange is NYSE: THC.[1]

[edit] History

Tenet Healthcare Corporation was created in March 1995 through the merger of health care pioneer National Medical Enterprises (NME), Inc. and the parent company of American Medical International (AMI), Inc., which was founded in 1960 as the nation’s first investor-owned hospital management company.

In the late 1990s and early 2000s, Tenet grew through the acquisition of a number of forprofit and not-for-profit hospitals and hospital systems, ultimately becoming the second largest investor-owned health care company in the United States.

In 2003, a new senior leadership team, led by President and Chief Executive Officer Trevor Fetter, was established to guide Tenet’s turnaround as it addressed a number of significant challenges.

The heart of Tenet’s strategy is quality. In 2003, the company launched Commitment to Quality, a multi-faceted program with targeted initiatives designed to drive quality throughout the entire organization, including critical areas such as clinical quality, patient care, patient safety, nursing practices and medical staff governance.

Tenet also recognized the challenges posed by the nation’s growing number of uninsured patients and took an industry-leading role in helping the uninsured receive quality, affordable care. In 2003, Tenet launched its Compact with Uninsured Patients, an initiative that offers managed care-style discount pricing to patients without insurance. Tenet’s strategy is to invest in its core hospitals and to pursue targeted growth opportunities in these core markets. Since 2004, the company has seen improvement in its quality and cost-control efforts, as well as progress in the rates it negotiates with managed care customers.

In June 2006, Tenet closed the chapter on many of its legacy issues when the company announced a broad settlement with the U.S. Department of Justice that concluded a number of investigations by U.S. attorneys across the country. The settlement, along with the announcement of the divestiture of 11 hospitals, has put the company on the path to future profitability.

Following the settlement, Tenet enhanced its capital spending at its core hospitals to approximately $800 million in 2006. The additional capital focuses on technology and patient care enhancements such as multi-slice CT scaners, new or expanded heart catheterization labs and magnetic resonance imaging machines (MRIs).

Tenet, through its subsidiaries, owns and operates acute care hospitals and related health care services. Quality is the cornerstone of the company’s business strategy. This includes the quality of the care provided at Tenet hospitals; the quality of service provided to patients, physicians and communities; and the quality of employees and the thousands of tasks they perform every day at its hospitals.