SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2016

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 16. SEGMENT INFORMATION

Our business consists of our Hospital Operations and other segment, our Ambulatory Care segment and our Conifer segment. The factors for determining the reportable segments include the manner in which management evaluates operating performance combined with the nature of the individual business activities.

Our core business is Hospital Operations and other, which is focused on operating acute care hospitals, ancillary outpatient facilities, freestanding emergency departments, physician practices and health plans. We also own various related healthcare businesses. At March 31, 2016, our subsidiaries operated 84 hospitals, with a total of 21,529 licensed beds, primarily serving urban and suburban communities in 13 states, and six health plans, as well as hospital-based outpatient centers, freestanding emergency departments and freestanding urgent care centers.

Our Ambulatory Care segment is comprised of the operations of our USPI joint venture and our nine Aspen facilities in the United Kingdom. At March 31, 2016, our USPI joint venture had interests in 250 ambulatory surgery centers, 35 urgent care centers, 21 imaging centers and 20 short-stay surgical hospitals in 28 states.

Our Conifer segment provides healthcare business process services in the areas of revenue cycle management and technology-enabled performance improvement and health management solutions to health systems, as well as individual hospitals, physician practices, self-insured organizations and health plans. At March 31, 2016, Conifer provided services to more than 800 Tenet and non-Tenet hospitals and other clients nationwide. Our Conifer subsidiary and our Hospital Operations and other segment entered into formal agreements documenting terms and conditions of various services provided by Conifer to Tenet hospitals, as well as certain administrative services provided by our Hospital Operations and other segment to Conifer. The services provided by both parties under these agreements are charged to the other party based on estimated third-party pricing terms.

The following tables include amounts for each of our reportable segments and the reconciling items necessary to agree to amounts reported in the accompanying Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations:

	March 31,		December 31,
	2016		2015
Assets:
Hospital Operations and other	$	17,131	$	17,353
Ambulatory Care		5,467		5,159
Conifer		1,168		1,170
Total	$	23,766	$	23,682

	Three Months Ended
	March 31,
	2016		2015
Capital expenditures:
Hospital Operations and other	$	191	$	176
Ambulatory Care		12		4
Conifer		5		4
Total	$	208	$	184
Net operating revenues:
Hospital Operations and other	$	4,397	$	4,151
Ambulatory Care		429		91
Conifer
Tenet		167		160
Other customers		218		182
Total Conifer revenues		385		342
Intercompany eliminations		(167)		(160)
Total	$	5,044	$	4,424
Adjusted EBITDA:
Hospital Operations and other	$	414	$	418
Ambulatory Care		136		29
Conifer		63		82
Total	$	613	$	529
Depreciation and amortization:
Hospital Operations and other	$	174	$	192
Ambulatory Care		25		4
Conifer		13		11
Total	$	212	$	207
Adjusted EBITDA	$	613	$	529
Depreciation and amortization		(212)		(207)
Impairment and restructuring charges, and acquisition-related costs		(28)		(29)
Litigation and investigation costs		(173)		(3)
Interest expense		(243)		(199)
Gains on sales, consolidation and deconsolidation of facilities		147		—
Investment earnings		1		—
Net income from continuing operations before income taxes	$	105	$	91