Company: THC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000070318-25-000009
Chunk: 63

Company: TENET HEALTHCARE CORP
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 63
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 financial results, which can be impacted by: volumes of insured patients and declines in commercial managed care patients; terms of managed care payer arrangements; healthcare policy changes; our ability to collect amounts due from uninsured and managed care payers; loss of volumes as a result of competition; physician recruitment and retention; and our ability to manage costs, such as labor costs, which can be adversely impacted by labor shortages, inflationary pressure on wages, minimum wage increases and labor union activity;

•changes in payments from governmental healthcare programs and in government regulations, such as reductions to Medicare and Medicaid payment rates resulting from government legislation or rule‑making or from budgetary challenges of states where we operate;

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•how the facilities are operated in the future;

•the impact of future technological advancements on our business;

•the nature of the ultimate disposition of the assets; and

•macro-economic conditions, such as inflation and gross domestic product (GDP) growth.

During the years ended December 31, 2024, 2023 and 2022, we recorded impairment charges totaling $7 million, $43 million and $94 million, respectively. We recognized impairment charges related to our Hospital Operations segment of $1 million in both of the years ended December 31, 2024 and 2023, and $88 million in the year ended December 31, 2022. During the years ended December 31, 2024, 2023 and 2022, impairment charges totaling $6 million, $42 million and $6 million, respectively, related to our Ambulatory Care segment. Impairment charges during the year ended December 31, 2024 primarily related to the write-down of certain intangible assets held by our Ambulatory Care segment to their estimated fair value. Impairment charges during the year ended December 31, 2023 were primarily related to the write‑down of our investment in certain equity method investments held by our Ambulatory Care segment. During the year ended December 31, 2022, $82 million of the total charges were related to the impairment of certain buildings and medical equipment located in one of our markets.

IMPAIRMENT OF GOODWILL

Goodwill represents the excess of purchase price over the net estimated fair value of identifiable assets acquired and liabilities assumed in a business combination. Goodwill is determined to have an indefinite useful life and is not amortized, but is instead subject to impairment tests performed at least annually, or