“We have demonstrated an ability to perform well in a variety of operating environments, and believe we are differentiated from our peers as we navigate potential changes going forward,” Saum Sutaria, MD, chair and CEO of Tenet, said during a Feb. 12 earnings call.
On Feb. 12, a federal judge in Boston extended a restraining order blocking the Trump administration’s plan to cut federal grant funding for medical research nationwide. The decision follows lawsuits arguing the National Institute of Health’s proposed cap on indirect costs would cause “irreparable harm.”
On Feb. 8, U.S. District Judge Paul Engelmayer blocked the Elon Musk-led Department of Government Efficiency from accessing the Treasury Department’s central payment system after 19 Democratic attorneys general shared plans to sue over “unauthorized access” to Americans’ “sensitive personal information.” DOGE sought access to CMS systems, which manage over $1 trillion annually, in early February. The request aligns with Mr. Musk’s plan to reduce federal spending, including potential Medicaid cuts.
In late January, a Medicaid reimbursement portal access “outage” occurred and then was restored in several states, potentially affecting more than 79 million Americans’ access to CHIP and Medicaid. The outage followed the White House’s attempt to freeze agency grants, loans and other financial assistance programs nationwide, which was retracted after Judge Loren AliKhan halted the freeze attempt.
Dr. Sutaria said during the call that “operating discipline” is the “fundamental underpinning of success” in an uncertain environment. He also said that Medicaid redeterminations over the last few years have already streamlined eligibility, which could reduce further policy adjustment impacts.
“I’m not sure that right now, taking a bunch of actions to restructure the business is the right thing to do,” he said. “I think there’s a very strong case to be made that many of these things are really critical to providing access, and it happens to be that that access is also being provided in states with voters that really matter to this administration, and that’s an important supporting factor as well.”
Dr. Sutaria also said the states will be “important allies across the board” in advocating for continued Medicaid funding, as it remains essential for providing healthcare access to vulnerable populations.
“This is not some program that’s generating incredible windfalls for health systems,” he said. “The reimbursement is still below the cost of that care and I think that’s going to be an important balancing factor. The states will play an important role in this.”
Tenet saw an operating income of $6 billion (28.8% margin) for the year ended Dec. 31, 2024. Its net income was $4.1 billion and total revenue was $20.7 billion.