Business Analysis of Tenet Healthcare

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Tenet Healthcare

TENET HEALTHCARE

Business Overview

Tenet Healthcare Corporation, together with its subsidiaries, operates as a diversified healthcare services company. It operates in three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. The company's general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. It also provides intensive and critical care, and coronary care units; physical therapy, orthopedic, oncology, and outpatient services; tertiary care services, including open-heart surgery, neonatal intensive care, and neurosciences; quaternary care in heart, liver, kidney, and bone marrow transplants areas; tertiary and quaternary pediatric, and burn services; and limb-salvaging vascular procedures, acute level 1 trauma services, intravascular stroke care, minimally invasive cardiac valve replacement, imaging technology, and telemedicine access for various medical specialties. In addition, the company offers ambulatory surgery and urgent care centers, imaging centers, and short-stay surgical hospitals, as well as Aspen's hospitals and clinics; healthcare business process services in the areas of hospital and physician revenue cycle management and value-based care solutions; and microhospitals, physician practices, and health plans. Further, it provides accounts receivable and health information management, and revenue integrity and patient financial services; patient communications and engagement services; and clinical integration, financial risk management, and population health management services. As of February 27, 2017, the company operated 80 general acute care hospitals, 20 short-stay surgical hospitals, and approximately 470 outpatient centers, as well as 239 ambulatory surgery, 34 urgent care, and 21 imaging centers in the United States; and 9 private hospitals and clinics in the United Kingdom. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.

Tenet Healthcare

Tenet Healthcare


R&P Rank: 141
Sector: Healthcare Services
Industry:Healthcare Providers
H.Q Location:Texas
Website: www.tenethealth.com
Company Address:
1445 ROSS AVENUE, SUITE 1400, DALLAS TX 75202
Ph:469-893-2200

Business Analysis of Tenet Healthcare

The Healthcare Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Tenet Healthcare compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Tenet Healthcare to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Tenet Healthcare with an interactive chart.

  1. Revenue Growth: Tenet Healthcare reported a revenue growth of 5.3% year-on-year during 2016. Healthcare Providers Industry grew at 6.7% in the same period
  2. COGS share of Revenues: Tenet Healthcare COGS share of Revenues details are not available because either company does not share the data or we do not have it
  3. R&D share of Revenues: Tenet Healthcare R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Tenet Healthcare spent 47.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Healthcare Providers industry average SG&A spending in the same period was 42.9%
  5. Inventory share of Revenues: As a percentage of revenue, Tenet Healthcare spent 1.7% of its total revenues on Inventories. Healthcare Providers industry average Inventory spending in the same period was 1.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Tenet Healthcare invested 7.8% of its total revenues on Accounts Payable (A/P) Healthcare Providers industry average Accounts Payable investment in the same period was 5.3%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Tenet Healthcare invested 14.8% of its total revenues on Accounts Receivable (A/R). Healthcare Providers industry average Accounts Receivable investment in the same period was 15.3%
  8. PP&E share of Revenues: As a percentage of revenue, Tenet Healthcare invested 41.0% of its total revenues on Property, Plants, and Equipments (PP&E). Healthcare Providers industry average PPE investment in the same period was 39.5%
  9. Intangibles share of Revenues: As a percentage of revenue, Tenet Healthcare invested 47.2% of its total revenues on Intangibles. Healthcare Providers industry average Intangibles investment in the same period was 46.7%
  10. Net Margins: Tenet Healthcare Net Margins in the year 2016 were -1.0%. Healthcare Providers industry average Net Margins in the same period were 1.6%

Sector and Industry Association of Tenet Healthcare

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Tenet Healthcare is associated with Healthcare Sector Group, Healthcare Services Sector, and Healthcare Providers Industry.

Healthcare Services sector is comprised of the following industries: Drug Stores, PBM and Distributors; Healthcare Payers; Healthcare Providers; Medical Software; Healthcare Research Services. The definitions for each of the industries is as follows:

  • Drug Stores, PBM and Distributors industry includes nationwide drugstore chains, pharmacy benefit management (PBM) companies, and drug distributors. Drug stores also offer walk-in clinics and related pharmacy services. Distributors distribute branded and generic pharmaceutical and other healthcare products to hospitals, pharmacies and other healthcare providers. PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims.
  • Healthcare Payers industry includes healthcare insurance companies that finance or reimburse the cost of health services. These companies also offer collaborative care, population health management, healthcare technology, Pharmacy Benefit Management, analytics, consulting and administrative services.
  • Healthcare Providers industry consist primarily of hospitals but recent changes in the health services industry have contributed to both increasing numbers of other types of facility providers. Companies in this industry include traditional healthcare providers and emerging healthcare facility providers like ambulatory surgery centers, behavioral healthcare facilities, dialysis clinics, home health care companies and others.
  • Medical Software industry includes companies that offer any software item or system used within a healthcare context. These companies offer standalone software used for diagnostic, therapeutic purposes, clinical financial and operational purposes.
  • Healthcare Research Services industry includes companies that offer biopharmaceutical development services, commercial outsourcing services; commercial pharmaceutical sales and service organizations, consulting, health information analytics and technology consulting.

Industry Ranking of Tenet Healthcare

With $19.6 billion revenues, Tenet Healthcare ranked number 2 of all the companies in the US Healthcare Providers industry. There were a total of 35 public companies in the US Healthcare Providers industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Healthcare Providers industry by revenues during 2016 were:

  1. HCA Holdings ($41.5 billion)
  2. Tenet Healthcare ($19.6 billion)
  3. Community Health Systems ($18.4 billion)
  4. DaVita ($14.7 billion)
  5. Universal Health Services ($9.8 billion)
  6. Kindred Healthcare ($7.2 billion)
  7. LifePoint Health ($6.4 billion)
  8. Genesis HealthCare ($5.7 billion)
  9. Brookdale Senior Living ($5 billion)
  10. Select Medical ($4.3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Tenet Healthcareand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of tenet-healthcare

HCA Holdings (HCA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

HCA Holdings, Inc. with $41 billion revenues in the year 2016 was the number 1 Healthcare Providers company. Read this report to know the top competitors of HCA Holdings and identify growth and cost optimization opportunities of HCA Holdings

Community Health Systems (CYH) Business Analysis – Analyze Historical Performance, Strategic...

Community Health Systems Inc with $18 billion revenues in the year 2016 was the number 3 Healthcare Providers company. Read this report to know the top competitors of Community Health Systems and identify growth and cost optimization opportunities of Community Health Systems

DaVita (DVA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

DaVita Inc. with $15 billion revenues in the year 2016 was the number 4 Healthcare Providers company. Read this report to know the top competitors of DaVita and identify growth and cost optimization opportunities of DaVita

Universal Health Services (UHS) Business Analysis – Analyze Historical Performance, Strategic...

Universal Health Services Inc with $10 billion revenues in the year 2016 was the number 5 Healthcare Providers company. Read this report to know the top competitors of Universal Health Services and identify growth and cost optimization opportunities of Universal Health Services

Kindred Healthcare (KND) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Kindred Healthcare, Inc with $7 billion revenues in the year 2016 was the number 6 Healthcare Providers company. Read this report to know the top competitors of Kindred Healthcare and identify growth and cost optimization opportunities of Kindred Healthcare

LifePoint Health (LPNT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

LifePoint Health, Inc. with $6 billion revenues in the year 2016 was the number 7 Healthcare Providers company. Read this report to know the top competitors of LifePoint Health and identify growth and cost optimization opportunities of LifePoint Health

Revenues Analysis

Tenet Healthcare (THC) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Tenet Healthcare Corp (THC) from 2012 to 2016. Tenet Healthcare generated a total of $19.6 billion revenues during 2016. Tenet Healthcare reported a revenue growth of 5.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Tenet Healthcare (THC) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Tenet Healthcare Corp (THC) from 2002 to 2016. Tenet Healthcare generated a total of $19.6 billion revenues during 2016. Tenet Healthcare reported a revenue growth of 5.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Tenet Healthcare (THC) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Tenet Healthcare Corp (THC) revenue growth with Healthcare Providers industry growth during the last five years from 2012 to 2016. Tenet Healthcare reported a revenue growth of 5.3% year-over-year during 2016. The Healthcare Providers industry growth was 6.7% year-over-year during 2016. Tenet Healthcare growth was slower than the industry during 2016.

Profit Analysis