Businessmodel of Tenet Healthcare

Customer Segments

Tenet Healthcare provides a range of healthcare and medical products, serving customers across a range of segments. The Company’s customers can be organised into two key categories:

• General Consumers, comprising general consumers across all demographics, primarily those living in urban and suburban communities, including sufferers of various diseases and acute conditions; and
• Healthcare Providers, including physicians, health systems, hospitals, physician practices, self- insured organisations, and health plans to which the Company provides healthcare business process services in the areas of revenue cycle management and health management solutions. Tenet Healthcare’s Conifer segment serves more than 800 Tenet Healthcare and non-Tenet Healthcare hospital and other clients in over 40 states across the US. The Company also serves an extensive number of consumers across the US through its self-operated hospitals and clinics. The Company also serves consumers in the UK under the government-funded National Health Service.

Value Propositions

Tenet Healthcare provides value to its clients in the following ways:

• Its reputation and track record, with the Company established as a leading provider of healthcare services, as well as business process services, with its name associated with high-quality services and care;
• Its range of services, with the Company offering a wide range of healthcare services covering an extensive range of chronic, specialty, and acute care services, as well as business process services for healthcare providers and organisations;
• Its extensive network of healthcare facilities, with the Company operating a broad network of 86 hospitals across the US, including three academic medical centres, two children’s hospitals, two specialty hospitals and two critical access hospitals, serving a range of urban and suburban communities; and
• Its industry expertise and experience, with the Company employing specialist personnel – including a network of affiliate physicians – across its operating segments, as well as a team of experienced industry personnel. ### Channels

Tenet Healthcare operates a website at www,tenethealth.com, through which the Company provides information on its products, services, and operating locations. The technical nature of the Company’s services does not lend itself to the operation of an online sales channel. While the Company also does not provide an online customer portal, it does offer certain online tools such as a tool through which they customers can locate nearby facilities

Tenet serves its consumer customers through a broad network of healthcare facilities and its specialist healthcare personnel. This includes 86 hospitals across the US, including three academic medical centres, two children’s hospitals, two specialty hospitals and two critical access hospitals, with a total of 22,525 licensed beds. The Company’s subsidiaries additionally operate a long-term acute care hospital and a skilled nursing facility, as well as various medical office buildings, 174 outpatient centres, ambulatory surgery and imaging centre assets, and short-stay surgical facilities. The Company’s facilities span 14 US state, including Texas, California, Arizona, and Florida.

Tenet Healthcare serves its institutional clients through its Conifer segment, which has a network of 20 dedicated service centres across the US, serving clients across 40 states.

Customer Relationships

Tenet Healthcare does not provide products and services to its customers on a self-service basis beyond certain online tools accessed via the Company’s website. The Company provides a significant degree of personal care to patients at its various healthcare facilities, with its specialist personnel tailoring its services specifically to treat each individual customer appropriately. Tenet Healthcare similarly provides tailored services to its institutional clients, with which its personnel consult directly in order to establish their unique circumstances.

Tenet provides ongoing support to its customers, who are able to contact the Company’s dedicated support teams over the phone or via post, receiving personalised responses to queries and enquiries. The Company also provides a range of information to customers on its website, including a tool through which customers can find a Tenet Healthcare facility in their area. Alternatively, customers can follow Tenet Healthcare’s operations, and interact with its personnel directly, through its social media accounts, including with Facebook and Twitter.

Key Activities

Tenet Healthcare is a US-based healthcare services company and healthcare provider. The Company operates regionally focused, integrated healthcare delivery networks, focusing on large urban and suburban markets.

It aligns its operations into three reportable business segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Tenet Healthcare operates an extensive network of acute care and specialty hospitals, outpatient facilities, and short-stay surgical hospitals across 14 US states, through which it treats sufferers of various chronic and acute medical conditions.

The Company also has nine medical facilities in the UK, through which it treats patients under the National Health Service. Through its Conifer segment, Tenet Healthcare provides a range of healthcare business process services in the areas of revenue cycle management and technology-enabled performance improvement, and health management solutions.

Key Partners

Tenet Healthcare works closely with a network of partner companies and organisations, that support the company’s operations across its three operating segments. These partners can be categorised broadly into the following:

• Supplier and Vendor Partners, including suppliers of services, technologies, and equipment that are utilised across the Company’s network of healthcare facilities, as well as through its Conifer units, as well as companies to which certain no-technical functions can be outsourced;
• Insurer and Health Plan Partners, including comprising various insurance service providers through which the Company provides a range of affordable coverage solutions for employers, retirees, individuals and families;
• Channel and Service Partners, including the Company’s network of affiliate physicians, and joint venture healthcare operators, with which the Company jointly provides healthcare services;
• Community Partners, including various non-profit and charitable organisations, with which the Company collaborates on various community and social projects; and
• Strategic and Alliance Partners, including a range of market leading companies across multiple sectors, with which the Company works on joint projects, including branding and marketing projects. Tenet Healthcare has a number of partners in place. Its insurance partners include Chicago Health system, Allegian Health Plan, and Chicago Health System Plan. The Company has also launched joint venture partnerships with Baylor Scott and White Health, and with Dignity Health and its parent company Ascension.

Key Resources

Tenet Healthcare’s key resources are its intellectual properties, equipment and medical supplies, its supply chain infrastructure, its network of healthcare facilities and service centres, its It and communications infrastructure, its affiliate physicians, its partnerships, and its personnel.

Tenet Healthcare relies on a combination of trademark, copyright and trade secret laws, as well as contractual terms and conditions, to protect its rights in relation to its intellectual property assets. Searches of records published by the US Patent and Trademark Office identified no patent applications filed in the name of Tenet Healthcare.

Tenet Healthcare additionally owns and or leases a number of physical properties. This notably includes its extensive network of healthcare facilities across the US and the UK, as well as its various offices, and service centres.

Cost Structure

Tenet Healthcare incurs costs in relation to the procurement of supplies and equipment, the payment of professional service fees, the operation of its network of medical facilities and offices, the maintenance of its It and communications infrastructure, the implementation of marketing campaigns, the management of its partnerships, and the retention of its personnel.

In 2015 Tenet Healthcare recorded personnel costs – including the payment of salaries, wages and benefits to its employees – in the amount of $9.01 billion, supplies costs in the amount of $2.96 billion, and other operating expenses totalling $4.56 billion.

Revenue Streams

Tenet Healthcare generates revenue through the provision of various healthcare services, as well as the provision of healthcare business process services. With the Company’s patients principally being treated under insurance plans, the Company principally derives revenue from government healthcare programs, primarily Medicare and Medicaid.

In 2015 Tenet Healthcare generated net operating revenue in the amount of $18.63 billion, up on the $16.60 billion recorded by the Company the previous year. The majority of the Company’s revenue was generated by its Hospital Operations and Other segment.