Company: THC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000070318-25-000009
Chunk: 38

Company: TENET HEALTHCARE CORP
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 38
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 under a government program by aging category:

December 31, 202420230-60 days $104 $103 61-120 days41 33 121-180 days25 9 Over 180 days40 16 Total $210 $161 

Salaries, Wages and Benefits

Same‑hospital salaries, wages and benefits expense increased by $201 million, or 2.9%, in the year ended December 31, 2024 compared to the same period in 2023. This change was primarily attributable to annual merit increases for certain of our employees, as well as increases in employee benefits costs, incentive compensation expense, and recruiting and retention costs. These impacts were partially offset by lower contract labor and premium pay. As a percentage of net operating revenues, same‑hospital salaries, wages and benefits decreased by 190 basis points to 47.5% in the year ended December 31, 2024 compared to the year ended December 31, 2023. Salaries, wages and benefits expense for the years ended December 31, 2024 and 2023 included stock‑based compensation expense of $61 million and $46 million, respectively.

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Table of Contents

Supplies

Same‑hospital supplies expense increased by $159 million, or 7.6%, in the year ended December 31, 2024 compared to 2023. This increase was driven by higher patient volumes and acuity, as well as the impact of general market conditions on the cost of medical supplies during 2024, partially offset by the cost‑efficiency measures discussed below. Same‑hospital supplies expense as a percentage of net operating revenues increased by 10 basis points to 15.2% in the year ended December 31, 2024 compared to the year ended December 31, 2023.

We strive to control supplies expense through product standardization, consistent contract terms and end‑to‑end contract management, improved utilization, bulk purchases, focused spending with a smaller number of vendors and operational improvements. The items of current cost‑reduction focus include surgical devices, cardiovascular and orthopedic implants, and high‑cost pharmaceuticals.

Other Operating Expenses, Net

Same‑hospital other operating expenses increased by $210 million, or 6.4%, in the year ended December 31, 2024 compared to 2023. The changes in other operating expenses during the year ended December 31, 202