Annual Meeting of Shareholders
Trevor FetterPresident & Chief Executive Officer
Dallas, TexasMay 8, 2008
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• Got back on a growth track:
– First quarter of positive admissions growth in nearly four years
– Florida Region back on track
– Philadelphia turnaround
– Acquired first new hospital in five years
– Broke ground on another new hospital — 4th in 5 years
• Improved Quality and Service:
– Highest overall CMS Core Measures scores among investor-owned systems; third highest among 10 largest U.S. systems; continued improvement in scores
– Improved physician, patient and employee satisfaction scores
• Increased investment in our hospitals to improve competitiveness
• Strong pricing growth; renegotiated nearly half of our managed care contracts
• Overhead down by more than 10% vs. prior year and 17% vs. budget; solid contribution to earnings
• Reduced employee turnover
• Strengthened Board of Directors and maintained high corporate governance ratings
2007: A Year of Many Accomplishments
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Tenet Today• 54 acute care hospitals, 2 sub-acute hospitals, 20 surgery
centers, 31 imaging centers
• 258th on Fortune 500 – $8.9 billion in revenues
• 100th largest U.S. employer, with 63,000 employees
• 3rd largest investor-owned hospital company and 4th largest hospital system in the U.S.
• Treating 4 million patients
• Delivering 82,000 babies
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2003 – 2005 2006-2007 2008 and Beyond
Phase I
Phase II
Phase III
Differentiation Based on Quality & Service
Stabilization
Selective Investment in Existing Markets & Outpatient Business
Tenet’s Strategy
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Commitment to Quality
Tenet
National Average
* Source: CMS Hospital Compare website.** SCIP measures added to data point of Q106-Q406 timeframe.
Tenet Healthcare vs. National Average*Q104 – Q407
88.0%
89.9%
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Tenet’s Core Hospitals vs. Largest U.S. SystemsQ306 – Q207
National Average, 88.0%
Commitment to Quality
92.9% 92.6%89.9% 89.6% 89.1% 88.8% 87.5% 87.2%
84.0% 83.9%
50%
60%
70%
80%
90%
100%
Trinity Health
Cathlic Health
Partners
Tenet Healthcare
Catholic
Healthcare W
est
Catholic Heath
Initiatives
Ascension
Health
Com
munity
Health Systems
HCA
Lifepoint
Hospitals
HMA
1. Source: CMS Hospital Compare website as of 3/31/08 from Q306 to Q207.2. This analysis includes all 24 CMS public measures in AMI/HF/PN/SCIP and includes the ten largest
U.S. health systems with 30 or more hospitals.
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65.6%64.2%
62.2%
55.9%
0.516
61.3%
40%
50%
60%
70%
80%
Ascension CHP CHW Tenet HCA HMA
HCAHPSTenet’s Core Hospitals vs. Large Systems (with at least 75% of hospitals reporting) Q406 – Q207
Patients Rating the Hospital 9 or 10 (on a 10-point scale)
69.4%68.1% 68.1%
66.7%
59.9%
54.9%
40%
50%
60%
70%
80%
Ascension CHP CHW Tenet HCA HMA
Patients Who Would Definitely Recommend the Hospital
National Average National Average
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Volume Building Strategies• Commitment to Quality (C2Q)
– Become the hospital of choice among physicians, patients and nurses– Centers of Excellence strategy (COE)
• Attract payer-directed volumes and pursue opportunities for pricing enhancements
• Targeted Growth Initiative (TGI)– Emphasize high margin, faster growing service lines consistent with
projected community needs
• Capital Expenditures Program– Target capital spending on highly visible items of greatest importance to
physicians and high margin service lines
• Physician Relationship Program (PRP)– Communications program with our physicians to highlight existing and
planned capabilities– Identify and resolve service and operational issues
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Admissions Growth
NOTE: Chart reflects same-hospital admissions growth for 53 hospitals as reported for the respective calendar year quarter over prior year.
2003
2004 20052006
2007
Tenet’s Same Hospital Admissions Growth
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Capital Expenditures Per Bed
Capital Expenditures Per Bed (1)
(1) Last 12 months for continuing operations, excluding construction of new hospitals.
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Significant Investment in the Latest Technology...Key Technology Investments Across our Hospitals
Diagnostic Imaging• 20 CT Scanners• 6 MRIs• 13 Digital Mammos• 19 Digital Ultrasounds• 19 Nuclear Medicine
Cameras
IS Systems• 13 PACS Systems• 11 ED clinical
documentation systems
• 21 core clinical system installations/ replacements
Radiation Therapy• 2 Linear accelerators• 1 Gamma Knife• 1 Cyber Knife
Procedure labs/ORs• 9 Cardiac cath Labs• 16 C-Arms• 2 DaVinci robots
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• 3 new patient towers
• 11 unit constructions/renovations and expansions
• Refurbishments of patient floors
• 6 medical office buildings constructed/ developed
• 55 basic clinical equipment replacements
… and Infrastructure…
Rendering of Sierra Providence East Hospital opening May 2008.
Rendering of East Cooper Replacement Hospital, planned to open in April 2010.
New patient tower at Twin Cities Community Hospital.
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…and Outpatient Services
• $33 million investment
– CY2007 spend = $13.2 million
– CY2008 spend = $19.8 million
• Acquisition / Development of New Centers
– Completed acquisition of Reagan Street Surgical Center, Los Alamitos, October 2007
– Planned acquisition of Sedona Surgery Center, JFK, in May 2008
– Planned acquisition/development of 4 DICs in 2008
• El Paso University Towers Imaging Center
• Placentia Linda Imaging Center
• Lake Pointe Forney Imaging Center
• Piedmont Baxter Village Imaging Center
• Dedicated Outpatient Resources
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Tenet’s 2008 Circle of Excellence Hospitals
• Cypress Fairbanks Medical Center Hospital , Houston, TX
• Delray Medical Center, Delray Beach, FL
• Desert Regional Medical Center, Palm Springs, CA
• Hahnemann University Hospital, Philadelphia, PA
• Houston Northwest Medical Center, Houston, TX
• Lake Pointe Medical Center, Rowlett, TX
• Los Alamitos Medical Center, Los Alamitos, CA
• North Fulton Regional Hospital, Roswell, GA
• North Shore Medical Center, Miami, FL
• Spalding Regional Medical Center, Griffin, GA
• St. Christopher’s Hospital for Children, Philadelphia, PA
• Twin Cities Community Hospital, Templeton, CA
2008 Tenet Heroes Hall of Fame Inductees
Debbie BenitezRN Coordinator
USC University Hospital
Esther ValdezRegistered Nurse
Houston Northwest Medical Center
Mescal HuntNICU Coordinator
Atlanta Medical Center
Lenny RosenfeldVice President
Quality Management
Everett ChristensenSupervisor of Plant OperationsNacogdoches Medical Center
Ronnie JenningsMaintenance Technician
Nacogdoches Medical Center
Edgar PayneHVAC Mechanic
Nacogdoches Medical Center
Barbara ZurzoloSenior Managing Counsel
Tenet Philadelphia
Denise JohnsonHR Representative
Doctors Hospital of Manteca
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National Nurses Week &National Hospital and Healthcare Week
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