Tenet Healthcare (THC) investor relations material

Utilization and volume trends

• Q1 saw weak respiratory volumes in January but improved sequentially, ending above expectations in March.

• Acute business outperformed, with new hospitals in Florida ramping up well.

• Physician practices remain busy, indicating strong future hospital demand.

• Utilization trends support confidence in meeting full-year guidance.

• The company is more bullish on its annual outlook after Q1 performance.

Core growth and financial normalization

• Q1 included normalization items like Conifer and Medicaid payments, largely offsetting each other.

• HIX impact was about 10% down in Q1, better than the expected 20% for the year.

• Hospital segment margins were strong at 17.5% in Q1.

• Expense management flexed with volume, supporting confidence in annual guidance.

Growth strategies and capital allocation

• Focus remains on high acuity business and expansion of related services.

• Increased capital expenditure in hospitals post-transaction supports growth.

• Expense reduction initiatives, including technology and AI, are being executed and will build over time.

• Confident in achieving 10% core growth from 2025 to 2026.