SEGMENT INFORMATION

9 Months Ended

Sep. 30, 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 Hospital Operations and other segment is focused on operating acute care hospitals, ancillary outpatient facilities, freestanding emergency departments and physician practices. We also own various related healthcare businesses. At September 30, 2016, our subsidiaries operated 79 hospitals, primarily serving urban and suburban communities in 12 states, and six health plans (certain of which are classified as held for sale, as described in Note 3), 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 September 30, 2016, our USPI joint venture had interests in 245 ambulatory surgery centers, 34 urgent care centers, 22 imaging centers and 20 short-stay surgical hospitals in 27 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, health plans and other entities. At September 30, 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:

	September 30,		December 31,
	2016		2015
Assets:
Hospital Operations and other	$	17,627	$	17,353
Ambulatory Care		5,729		5,159
Conifer		1,118		1,170
Total	$	24,474	$	23,682

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Capital expenditures:
Hospital Operations and other	$	182	$	194	$	557	$	536
Ambulatory Care		14		7		42		14
Conifer		5		6		15		16
Total	$	201	$	207	$	614	$	566
Net operating revenues:
Hospital Operations and other	$	4,162	$	4,179	$	12,761	$	12,505
Ambulatory Care		448		329		1,319		562
Conifer
Tenet		159		163		488		488
Other customers		239		184		681		541
Total Conifer revenues		398		347		1,169		1,029
Intercompany eliminations		(159)		(163)		(488)		(488)
Total	$	4,849	$	4,692	$	14,761	$	13,608
Equity in earnings of unconsolidated affiliates:
Hospital Operations and other	$	3	$	(2)	$	6	$	12
Ambulatory Care		28		30		79		36
Total	$	31	$	28	$	85	$	48
Adjusted EBITDA:
Hospital Operations and other	$	334	$	383	$	1,163	$	1,259
Ambulatory Care		157		122		432		200
Conifer		79		61		205		204
Total	$	570	$	566	$	1,800	$	1,663
Depreciation and amortization:
Hospital Operations and other	$	170	$	156	$	525	$	525
Ambulatory Care		22		17		69		28
Conifer		13		12		38		36
Total	$	205	$	185	$	632	$	589
Adjusted EBITDA	$	570	$	566	$	1,800	$	1,663
Depreciation and amortization		(205)		(185)		(632)		(589)
Impairment and restructuring charges, and acquisition-related costs		(31)		(44)		(81)		(266)
Litigation and investigation costs		(4)		(50)		(291)		(67)
Interest expense		(243)		(248)		(730)		(664)
Investment earnings (losses)		(1)		1		2		—
Gains on sales, consolidation and deconsolidation of facilities		3		—		151		—
Net income from continuing operations before income taxes	$	89	$	40	$	219	$	77