P1250095210EZQTk

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Tenet Healthcare Corporation
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• Tenet Healthcare Corporation
• Owns and operates acute care hospitals
• Other related health care services
• Tenet Hospitals have received National
  Recognition for Quality

Region Locations
Tenet CaliforniaSanta Ana OfficeSanta Ana, CA
92707 Tenet Texas-Gulf CoastDallas
OfficeDallas, TX 75240
Tenet Central Northeast-Southern StatesAtlanta
OfficeAtlanta, GA 30339 Tenet
Florida-AlabamaFt. Lauderdale OfficeFort
Lauderdale, FL 33309

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Tenet Healthcare Corporation

• 69 hospitals
• 18,009 licensed beds
• 76,000 employees
• 9.9 B net operating revenues
• 690,000 admissions
• 5.6 M outpatient visits
• 85 of hospitals in communities with
  above-average population growth

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Operating Attributes

• Market-leading regional networks
• Wide variety of medical services, augmented by
  ancillary health care services
• Prestigious academic medical centers
• Technological Equipment, Instrumentation, and
  Specialty Physicians
• Second largest for-profit hospital chain

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Tenets Goals

1. Being the Best Managed Hospital Company
2. Being the Best Place to Work in Health Care
3. Setting New Standards in Service and Quality for
   Patients
4. Achieving Attractive Returns for our
   Shareholders

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Commitment to Quality
Growth
Cost
People
Quality
Service
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Get with the Guidelines

• Tenets Cardiovascular Program
• American Heart Associations Recognition
• Recognized Tenet for having the largest number of
  participating hospitals
• Recognized Tenet for having More Performance
  Achievement Award Winning Hospitals than any
  Other Health System in the Country

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Corporate Governance Quotient (CGQ)ISS Rating
System

• Eight Areas of Focus
• Board of Directors
• Audit
• Charter and Bylaw Provisions
• Anti-Takeover Provisions
• Executive and Director Compensation
• Progressive Practices
• Ownership
• Director Education

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CGQ
Better than SP 500 Companies
THC
HMA
HCA
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CGQ Better than
Health Care Equipment Services
THC
HCA
HMA
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U.S. NEWS WORLD REPORT

• 2005 Edition Recognized Tenet Healthcare
  Corporation to have two of Americas Best
  Hospitals

St. Christophers Hospital for Children
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Restructuring Steps

• Senior Management Changes
• Divestiture of non-productive hospitals
• Implementation of Cost Containment Measure
• Investments into Capital Equipment Improvements
• Compact program for Uninsured Patients

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Analyst Projected Earnings Growth Rate
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(No Transcript)
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Accounts Receivable

• Tenet Healthcare
• Ave. Days to Collect
• 59 days
• Ending Days
• 57 days

• HMA
• Ave. Days to Collect
• 65 days
• Ending Days
• 67 days

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Value of Efficiency
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Analysis of Operations

• TTM 03/31/05
• Operating Revenue 9,844M
• Total Recurring Op Expenses
• 
  9,814M
• Recurring Oper Profit 30 M
• 
  (Non-Recurring Items)
• Goodwill
  Impairment ( 1,236M)
• Cost Litigation
  ( 72M)
• Restructuring
  ( 36M)
• Other loss debt
  ( 28M)

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PEG Ratio

• PEG PE/Expected Growth Rate
• PE Current Market Price/ TTM Earnings
• Tenets PEG lt1
• Tenets Stock is Undervalued
• Since Tenets market price is low, and their
  expected growth rate is expected to rise
  dramatically
• Now is the time to buy.
  

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Team Expectations for Stock Growth

• Projected
• THC initial 40, 5 on-going
• HMA 5 per year

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Invest in Tenet

• HMA 24.05, -5 each year, ending stock price
  18.61
• 500,000 buys 20,704 shares of stock
• 5 years later 20,704 18.61385,290
• Dividends Paid 20,704 over the five year period
• Loss for shareholders after 40 tax and dividend
  tax of 10 and 500,00 initial investment
  -116,781
• THC 12.00, 40 first year, 5 growth each year
  thereafter, ending stock price 20.42
• 500,000 buys 41,666 shares of stock
• 5 years later 41,666 20.42850,841
• Profit for shareholders after 40 tax and
  500,000 initial investment 210,504

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Doing the Right Thing

• Tenets Financial Performance is important
  however, it is not the only indicator of a
  successful hospital.
• Doing the Right Thing for Patients and Employees
  will Reap its Rewards in the Future for the
  Stockholders and the Communities

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TENET

• The Higher the Risk the MORE the PROFIT than HMA

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ize Matters

• THC 2
• HMA 8

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• It Takes Money to Make
• MONEY