Company: THC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000070318-25-000009
Chunk: 41

Company: TENET HEALTHCARE CORP
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 41
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 Salaries, wages and benefits expense as a percentage of net operating revenues increased by 10 basis points from 25.0% in the year ended December 31, 2023 to 25.1% in the year ended December 31, 2024. Salaries, wages and benefits expense included stock‑based compensation expense of $6 million and $20 million in 2024 and 2023, respectively.

Supplies

Supplies expense increased by $142 million, or 13.6%, during the year ended December 31, 2024 compared to 2023. The change was driven by $78 million increase from 2023 and 2024 acquisitions and purchases of controlling interests, partially offset by the impact of the sale or closure of certain facilities. An increase of $64 million in same‑facility supplies expense, due primarily to an increase in surgical cases at our consolidated centers and higher pricing of certain supplies as a result of the impact of general market conditions and inflation, also contributed to this change. Supplies expense as a percentage of net operating revenues decreased by 80 basis points from 27.0% in the year ended December 31, 2023 to 26.2% in the year ended December 31, 2024.

Other Operating Expenses, Net

Other operating expenses increased by $119 million, or 22.4%, during the year ended December 31, 2024 compared to 2023. The change was primarily driven by (1) an $82 million increase from 2023 and 2024 acquisitions and purchases of controlling interests, partially offset by the impact of the sale or closure of certain facilities, and (2) a $37 million increase in same-facility other operating costs. Other operating expenses as a percentage of net operating revenues increased from 13.7% for the year ended December 31, 2023 to 14.3% for 2024. Other operating expenses for our Ambulatory Care segment included $159 million and $130 million of lease expense for the years ended December 31, 2024 and 2023, respectively.

Facility Growth

The following table presents the year-over-year changes in our revenue and cases on a same‑facility systemwide basis:

Year Ended December 31, 2024Net revenues7.8 %Cases0.3 %Net revenue per case7.4 %

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