Tenet Healthcare Corporation (NYSE:THC) Q2 2024 Earnings Conference Call July 24, 2024 10:00 AM ET

Company Participants

Will McDowell - Vice President of Investor Relations
Saum Sutaria - Chairman and Chief Executive Officer
Sun Park - Executive Vice President and Chief Financial Officer

Conference Call Participants

Brian Tanquilut - Jefferies
Ann Hynes - Mizuho Securities
Justin Lake - Wolfe Research
Whit Mayo - SVB Leerink
John Ransom - Raymond James
Kevin Fischbeck - Bank of America
Josh Raskin - Nephron Research
A.J. Rice - UBS Securities
Andrew Mok - Barclays Capital
Pito Chickering - Deutsche Bank
Jason Cassorla - Citi
Sarah James - Cantor Fitzgerald
Stephen Baxter - Wells Fargo

Operator

Good morning. Welcome to Tenet Healthcare's Second Quarter 2024 Earnings Conference Call. After the speaker remarks, there will be a question-and-answer session for industry analysts. [Operator Instructions] Tenet respectfully asks that analysts limit themselves to one question each.

I'll now turn the call over to your host, Mr. Will McDowell, Vice President of Investor Relations. Mr. McDowell, you may begin.

Will McDowell

Good morning everyone and thank you for joining today's call. I am Will McDowell, Vice President of Investor Relations. We're pleased to have you join us for a discussion of Tenet's second quarter 2024 results, as well as a discussion of our financial outlook.

Tenet's senior management participating in today's call will be Dr. Saum Sutaria, Chairman and Chief Executive Officer; and Sun Park, Executive Vice President and Chief Financial Officer.

Our webcast this morning includes a slide presentation, which has been posted to the Investor Relations section of our Web site, tenethealth.com. Listeners to this call are advised that certain statements made during our discussion today are forward-looking and represent management's expectations based on currently available information. Actual results and plans could differ materially. Tenet is under no obligation to update any forward-looking statements based on subsequent information. Investors should take note of the cautionary statement slide included in today's presentation, as well as the risk factors discussed in our most recent Form 10-K and other filings with the Securities and Exchange Commission.

And with that, I'll turn the call over to Saum.

Saum Sutaria

Thank you, Will, and good morning everyone. Our second quarter performance exceeded our expectations, and extends our track record of consistently strong operating results, driven by fundamental growth and disciplined operations. In the second quarter, we reported net operating revenues of $5.1 billion, consolidated adjusted EBITDA was $945 million, representing growth of 12% over second quarter 2023, with an adjusted EBITDA margin of 18.5%. USPI produced another very strong quarter, with $447 million in adjusted EBITDA, representing 21% growth over second quarter 2023. Same-facility revenues grew 7.1%, and adjusted EBITDA margins remain robust. Orthopedic volumes were strong, with total joint replacements in the ASCs up 23% over prior year, coupled with ongoing growth in urology and GI procedures. Acuity and payer mix were strong.