Company: THC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000070318-25-000009
Chunk: 124

Company: TENET HEALTHCARE CORP
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 124
---
 services. Our Hospital Operations segment’s contract assets were included in other current assets, and its contract liabilities were included in other current liabilities or other long‑term liabilities, depending upon when we expect to recognize the underlying revenue, in the accompanying Consolidated Balance Sheets at December 31, 2024 and 2023.The opening and closing balances of our Hospital Operations segment’s receivables, contract assets, and current and long‑term contract liabilities were as follows:ReceivablesContract Assets – Unbilled RevenueContract Liabilities –CurrentDeferred RevenueContract Liabilities –Long-TermDeferred RevenueDecember 31, 2023$21 $208 $59 $12 December 31, 202428 190 80 13 Increase (decrease)$7 $(18)$21 $1 December 31, 2022$37 $200 $110 $13 December 31, 202321 208 59 12 Increase (decrease)$(16)$8 $(51)$(1)The differences between the balances of our contract assets at December 31, 2024 and 2023 and the differences between December 31, 2023 and 2022 were both primarily related to patients who were receiving inpatient acute care and specialty hospital services as of each year‑end date, but who were discharged during the following year. In the years ended December 31, 2024 and 2023, we recognized revenue totaling $58 million and $71 million, respectively, from our revenue cycle management services that was included in the opening current deferred revenue liability. This revenue consists primarily of prepayments for those contract clients who were billed in advance, changes in estimates related to metric‑based services and up‑front integration services that are recognized over the service period.Contract Costs—We recognized amortization expense related to deferred contract setup costs of $3 million, $5 million and $4 million during the years ended December 31, 2024, 2023 and 2022, respectively. At December 31, 2024 and 2023, unamortized client contract setup costs were $19 million and $22 million, respectively, and were presented as part of investments and other assets in the accompanying Consolidated Balance Sheets.

NOTE 5. DISPOSITION OF ASSETS AND LIABILITIES

In November 2023, we entered into a definitive agreement for the sale of three hospitals located in