Tenet on track to meet $450M cost-cutting goal this year, CEO says

Tenet Healthcare improved operational efficiencies last year, cutting $300 million in expenses, its CEO Ron Rittenmyer said during a presentation at the J.P. Morgan Healthcare Conference in San Francisco.

The 65-hospital system based in Dallas made the cuts through centralization, overhead reductions, external spend management and off-shoring, Mr. Rittenmyer said, and it is on track to meet its long-term $450 million cost-reduction target this year.

Last year, the system refinanced $5.7 billion of debt, which is expected to generate cash interest payment savings of $18 million annually.

It plans to scale its ambulatory surgery business in the U.S. via acquisitions and spend about $150 million to $175 million annually expanding its ASC footprint, Mr. Rittenmyer said.

The system also is working in 2020 to turn Confir, its revenue cycle unit, into an independent, publicly traded company.

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