Tenet Healthcare Corporation (THC) Stock Analysis

Tenet Healthcare’s primary competitive advantage is its scale and diversification across the healthcare services value chain. The company operates 49 acute care and specialty hospitals¹ and holds ownership interests in 518 ambulatory surgery centers (ASCs)² and 25 surgical hospitals³, making it the largest operator of ASCs in the U.S. (via its USPI subsidiary). This ambulatory focus is a structural advantage: ASCs offer higher margins and capital efficiency compared to traditional hospitals, and industry trends favor outpatient care due to payer and patient preferences for lower-cost settings.

Tenet’s portfolio transformation—divesting lower-margin hospitals and expanding ASCs—has driven EBITDA margin expansion to above 17% in 2024, outpacing most hospital peers.⁴ For comparison, HCA Healthcare, the largest for-profit hospital operator, reported EBITDA margins near 16% in the same period, while Community Health Systems remains below 13%.⁵ Tenet’s asset-light ambulatory model also supports faster deleveraging; net debt fell from $15.0 billion at year-end 2023 to $10.2 billion by March 2025.⁶

The company’s Conifer Health Solutions unit provides revenue cycle management to external clients, creating a recurring, non-patient revenue stream and deepening payer relationships.⁷ Tenet’s relatively low Medicaid exposure further insulates it from reimbursement risk compared to peers with heavier government payor mixes.⁸

Risks include high industry competition⁹, labor cost pressures¹⁰, and ongoing regulatory scrutiny¹¹. However, Tenet’s scale, capital allocation discipline¹², and strategic focus on high-growth, high-margin segments¹³ underpin a durable competitive edge.