Tenet Healthcare 1Q15 Earnings Call Notes

Move to drive business from exchanges has paid off

“I would just like to say again and thank our managed care team, who helped us implement a strategy beginning more than two years ago to make sure that we were really well positioned in these exchange networks. And so, we were an early adopter of the exchanges, we entered into contracts with – and you’ve heard us quote this statistic all last year, with a very high percentage of the plans that were offered in all of our markets. And that is what is really driving that business. So we’ve been first movers, we have a competitive advantage due to the pricing that we have and the level of clinical quality and reputation of our hospitals in these markets, and that’s what’s really driving that business.

The numbers will move around little bit, because you did start with a very small base, and it’s growing very rapidly. But it’s a great story for us with a new market that’s substantial, it’s profitable, and we’re providing good service to people who are utilizing our hospitals within those.”

So much of the healthcare industry isn’t public

“you got to remember that the industry that’s five times as big as the companies that everybody pays so much attention to.”

You know better than I do why the stock is moving this way or that

“I would start by saying you have to ask your own clients that. I’m the wrong person to ask because just on the fundamentals, this is the latest in a string of very solid quarters where we have exceeded expectations, driven organic growth, driven it in the right way which is with increase in the number of customers we are serving and good metrics, solid metrics on pricing and cost control. And so to my way of thinking about it, we are creating value in the enterprise that should be reflected in the market. But I’ve also learned over time to keep doing what we do and what’s within our control and not become too obsessed with short term fluctuations in the share price.”