Dallas-based Tenet Healthcare recorded an operating income of $889 million (16.8% operating margin) in the third quarter of 2025, down from $1.1 billion (21.2% margin) during the same period last year, according to its Oct. 28 earnings report.
“Our high acuity service line focus and operational discipline enabled us to deliver strong same store revenue growth and attractive operational performance and free cash flow in the third quarter,” Tenet Chairman and CEO Saum Sutaria, MD, said in the report.
Six things to know:
1. The for-profit health system reported operating revenue of $5.3 billion for the three months ended Sept. 30, up from $5.1 billion during the same period last year.
2. Salaries, wages and benefit expenses decreased 0.6% year over year to $2.2 billion in the quarter. Supply expenses increased 5.7% year over year to $931 million. Other expenses increased 0.7% to $1.1 billion.
3. Tenet’s recorded a net income of $342 million in the quarter, down from $472 million in the third quarter of 2024.
4. The system’s hospital operations and services segment reported operating revenue of $4 billion, a 0.7% increase year over year. Same-hospital net patient service revenue per adjusted admission increased 5.9% year over year, driven by favorable payer mix, higher Medicaid supplemental revenues and growth in higher-acuity services.
5. Tenet’s ambulatory care segment reported operating revenue of $1.3 billion, an 11.9% increase year over year. Surgical business same-facility system-wide net patient service revenues increased 8.3%, with cases up 2.1% and net revenue per case up 6.1%. Net revenue per case growth was driven by favorable case mix, increases in
higher acuity volumes and favorable payer mix.
6. Tenet comprises 50 acute care hospitals, about 640 outpatient centers and 100,000 employees, according to its website. Tenet’s ambulatory business segment, United Surgical Partners International, has interests in 530 ASCs (398 consolidated) and 26 surgical hospitals (eight consolidated) in 37 states.
