TENET HEALTHCARE CORP - 10-Q filing on 2018-04-30

NET OPERATING REVENUES (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

The table below shows our sources of net operating revenues from continuing operations:



	Three Months Ended March 31,
	2018			2017
Hospital Operations and other:
Net patient service revenues less provision for doubtful accounts from hospitals and related outpatient facilities
Medicare	$	782		$	862
Medicaid	321			275
Managed care	2,368			2,433
Self-pay	37			13
Indemnity and other	135			145
Total	3,643			3,728
Physician practices net patient service revenues less provision for doubtful accounts	161			178
Net patient service revenues less provision for doubtful accounts	3,804			3,906
Health plans	6			65
Revenue from other sources	137			144
Hospital Operations and other total prior to inter-segment eliminations	3,947			4,115
Ambulatory Care	498			455
Conifer	404			402
Inter-segment eliminations	(150		)	(159		)
Net operating revenues	$	4,699		$	4,813

The table below shows the composition of net operating revenues for our Ambulatory Care segment:



	Three Months Ended March 31,
	2018		2017
Net patient service revenues less provision for doubtful accounts	$	469	$	428
Management fees	23		21
Revenue from other sources	6		6
Net operating revenues	$	498	$	455

The table below shows the composition of net operating revenues for our Conifer segment:



	Three Months Ended March 31,
	2018		2017
Revenue cycle services – Tenet	$	144	$	147
Revenue cycle services – other customers	232		224
Other services – Tenet	6		12
Other services – other customers	22		19
Net operating revenues	$	404	$	402

Performance obligation, expected timing of satisfaction

The following table includes Conifer’s revenue that is expected to be recognized in the future related to performance obligations that are unsatisfied, or partially unsatisfied, at the end of the reporting period. The amounts in the table primarily consist of revenue cycle management fixed fees, which are typically recognized ratably as the performance obligation is satisfied. The estimated revenue does not include volume or contingency based contracts, performance incentives, penalties or other variable consideration that is considered constrained. Conifer’s contract with Catholic Health Initiatives (“CHI”), a minority interest owner of Conifer Health Solutions, LLC, represents the majority of the fixed fee revenue related to remaining performance obligations. Conifer’s contract term with CHI ends in 2032.



			Nine Months Ending		Years Ending								Later Years
			December 31,
	Total		2018		2019		2020		2021		2022
Performance obligations	$	8,378	$	496	$	659	$	652	$	603	$	574	$	5,394