Company: THC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000070318-25-000039
Chunk: 18

Company: TENET HEALTHCARE CORP
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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$10,494 $10,476 (1)Primarily revenue from physician practices and revenue cycle management.Adjustments for prior‑year cost reports and related valuation allowances, principally related to Medicare and Medicaid, increased revenues in the six months ended June 30, 2025 and 2024 by $13 million and $2 million, respectively. Estimated cost report settlements receivable, net of payables and valuation allowances, were included in accounts receivable in the accompanying Condensed Consolidated Balance Sheets (see Note 2). We believe that we have made adequate provision for any adjustments that may result from the final determination of amounts earned under all the above arrangements with Medicare and Medicaid.The table below presents the composition of net operating revenues for our Ambulatory Care segment:Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Net patient service revenues$1,214 $1,100 $2,357 $2,054 Other revenues(1)56 41 107 82 Net operating revenues$1,270 $1,141 $2,464 $2,136 (1)Primarily revenue from management fees and other sources.Performance ObligationsThe following table presents revenue from revenue cycle management services 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:  SixMonths EndingYears EndingLater YearsDecember 31, Total20252026202720282029Performance obligations$5,298 $364 $720 $717 $717 $716 $2,064 

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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, variable‑based escalators, performance incentives, penalties or other variable consideration that is considered constrained. Our contract with Catholic Health Initiatives (“CHI”), now known as CommonSpirit Health and the minority interest holder in our Conifer Health Solutions, LLC joint venture, represents the majority of the fixed‑fee revenue related to remaining performance obligations. Our contract term with CHI is scheduled to end on December 31, 2032.

NOTE 10. INSURANCE

Property InsuranceWe have property, business interruption and related insurance coverage to mitigate the financial impact of catastrophic events or perils that is subject