Q4’07 Earnings Call

February 26, 2008

2

Forward-Looking Statements Certain statements contained in this presentation constitute forward-looking statements. Such forward-looking statements are based on management's current expectations and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results to be materially different from those expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and regionally; industry capacity; demographic changes; changes in, or the failure to comply with, laws and governmental regulations; the ability to enter into managed care provider arrangements on acceptable terms; changes in Medicare and Medicaid payments or reimbursement, including those resulting from a shift from traditional reimbursement to managed care plans; liability and other claims asserted against the Company; competition, including the Company’s failure to attract patients to its hospitals; the loss of any significant customers; technological and pharmaceutical improvements that increase the cost of providing, or reduce the demand for, health care; a shortage of raw materials, a breakdown in the distribution process or other factors that may increase the Company’s cost of supplies; changes in business strategy or development plans; the ability to attract and retain qualified personnel, including physicians, nurses and other health care professionals, including the impact on the Company’s labor expenses resulting from a shortage of nurses or other health care professionals; the significant indebtedness of the Company; the availability of suitable acquisition opportunities and the length of time it takes to accomplish acquisitions; the Company's ability to integrate new businesses with its existing operations; and the availability and terms of capital to fund the expansion of the Company's business, including the acquisition of additional facilities. Certain additional risks and uncertainties are discussed in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q.

Do not rely on any forward-looking statement, as we cannot predict or control many of the factors that ultimately may affect our ability to achieve the results estimated. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.

Non-GAAP InformationDuring the Company’s quarterly earnings calls and in this presentation, management refers to certain financial measures and statistics, including measures such as adjusted EBITDA, which are not calculated in accordance with Generally Accepted Accounting Principles(GAAP). Management recommends that you focus on the GAAP numbers as the best indicator of financial performance. These alternative measures are provided only as a supplement to aid in analysis of the Company.

Reconciliation between non-GAAP measures and related GAAP measures can be found in the press release issued on February 26, 2008, and on the Company’s web site, www.tenethealth.com.

Trevor FetterPresident and

Chief Executive Officer

4

Significant milestones achieved in Q4’07

Volumes

� 8.9% growth in commercial managed care revenue versus Q4’06

(same-hospital) . . . despite 1.8% decline in commercial managed care admissions

� 0.1% admissions growth (Q4’07 vs Q4’06, same-hospital)

� Florida volumes stabilizing with 0.3% admissions decline

� 2.3% admission growth through January 31, 2008 (same-hospital)

� 2.1% admissions growth in Florida through 1/31/08 (same-hospital)

Bad Debt

Pricing

� Collection rates increasing for all categories (versus Q4’06)

� 3.5% increase in net revenue per adjusted admission (same-hospital)

� Signed new contracts representing almost 1/3 of commercial payer revenue

Revenue

Costs � 5.1% growth in controllable operating expense per adjusted patient day

5

Improvement in non-financial metrics

Service

Quality

� 2.5% increase in physician satisfaction scores – to 76.7%

� 0.8% increase in patient satisfaction scores – to 71.8%

� Tenet ranks number 3 among the 10 largest hospital systems and the highest among investor-owned hospital companies

People

� 19.7% total employee turnover, improved from 22.5% in 2006

� 68.0% employee satisfaction up from 65.6% in 2006

� 3.9% hospital CEO turnover versus 20% in 2006

Stephen L. Newman, M.D.Chief Operating Officer

7

Momentum Building in 3 Key Areas:

� Volumes

� Pricing and quality initiatives

� Physician staff expansion

8

Volume Growth� Q4’07 admissions grew 0.1% (vs Q4’06) . . . aggregate market share is stabilizing

� First positive quarter since Q1’04

� January growth of 2.3%

� Florida :

� 0.3% admissions decline in Q4’07 (vs Q4’06). . . smallest decline since Q4’04

� Up 2.1% in January 2008 (vs Jan’07)

� 0.8% Palm Beach admissions growth in Q4’07 (vs Q4’06)

� 4 of 5 Palm Beach hospitals had positive admissions growth in Q4’07 (vs Q4’06)

� Philadelphia :

� 20% admissions growth at St. Christopher’s Hospital for Children (vs Q4’06)

� 0.9% admissions growth at Hahnemann University Hospital (vs Q4’06)

� California :

� 3.2% admissions growth in Q4’07 (vs Q4’06) . . . 2.4% excluding Stanislaus

� Softer admissions in Texas and Southern States Markets

9

Volume Growth (cont.)

� Surgery growth in Q4’07 (vs Q4’06) :

� 0.3% growth in total surgeries

� 0.8% growth in outpatient surgeries

� 0.4% decline in inpatient surgeries

� Commercial managed care admissions:

� 1.8% decline in Q4’07 (vs Q4’06)

� TGI service lines continue to accelerate commercial growth� 8.2% growth - commercial urological surgery (vs Q4’06)

� 19.0% growth – commercial ENT surgery

� 0.3% growth – commercial orthopedic surgery

� 3.7% growth – commercial neurosurgery

� 16.0% growth – commercial vascular surgery

� Declines in:

� 2.7% - commercial obstetrics (vs Q4’06)

� 13.9% - commercial open heart surgeries

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Pricing gains . . . achieving our objectives

� Recently signed commercial contracts achieve critical pricing objectives:� United, Aetna, CIGNA, Blue Cross of California

� Securing full network participation of all facilities in key markets

� Managed care pricing (including government programs)

� 9.4% increase in net revenue per admission (vs Q4’06)

� 9.0% increase in revenue per outpatient visit (vs Q4’06)

� Increasing COE designations from managed care payers

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Physician Relationships: Recruiting more doctors

� 241 net new physicians added in Q4’07 with active staff privileges (1)

� 1,086 net new physicians added in 2007

. . . . approximately a 9% increase to our active physician staff

� Physician Recruitment Program (“PRP”):

� Visited 4,720 physicians in Q4’07

� 2.5% admissions growth from these physicians (vs Q4’06)

� Included visits to 437 physicians unaffiliated with Tenet

� New executive to lead business development, marketing, advertising, physician recruitment, and Physician Relationship Program

(1) “Active staff” status generally requires at least 10 admissions per year or 10 outpatient surgeries per year.

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Summary - Operations

� Admissions up for first time in almost 4 years

� Favorable volume trends continue in 2008

� Continuing progress in:

� Pricing

� Quality

� Physician recruitment

Biggs C. PorterChief Financial Officer

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Adjusted EBITDA (1)

218211

114

153

194

164177

168

0

50

100

150

200

250

300

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2006 2007

(1) Same hospital.

$ in

mill

ions

15

Adjusted EBITDA (1) $168mm in Q4’07 includes:

ExpenseAccruals

� $12mm year-end net compensation and benefit accruals

Bad DebtAdjustment

� $19mm favorable adjustment from “look-back” on collection experience

(1) Same hospital.

Cost ReportAdjustments � Net zero

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Volume – Admissions Growth (1)

-4%

-2%

0%

2%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2006 2007

Y-o

-Y G

row

th

(1) Same hospital.

Up 0.1%

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Net Revenue (1) -Growth Trend Strengthening

-4%

-2%

0%

2%

4%

6%

8%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2006 2007

Y-o

-Y G

row

th

(1) Same hospital.

Up 6.0%

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Solid pricing gains

�4.0% increase in net inpatient revenue per adjusted admission (same hospital)

. . . . 4.9% normalized for Q4’06 cost report adjustments

�10.6% increase in net outpatient revenue per visit (same

hospital)

� Recently signed commercial contracts support growth trend� CIGNA and Blue Cross California effective 1/1/08� ’08 and ’09 escalators in substantially all contracts� Signed contracts cover approximately:

� 80% of commercial rates for 2008

� Over 60% for 2009

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Cost Containment

Controllable Expenses(1) per Adjusted Patient Day

(1) Same-hospital controllable expenses defined as SWB, supplies, and other operating expenses. (2) Excludes $12mm of year-end compensation and benefit expense and $17mm increase in implant expense vs Q4’06

Growth rate is 4.4 percent if only the $12mm year-end compensation and benefit expense is excluded.

5.1

4.2

4.8

6.56.3

3.6

4.3

5.1

0%

2%

4%

6%

8%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2006 2007

Y-o

-Y G

row

th

3.5 %Normalized (2)

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Bad Debt Controlled…despite 10% growth (1) in uninsured admissions

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3

Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1

Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

As reported

Compact-adjusted (2) (as reported)

Bad Debt Expense / Net Revenues(excluding unusual charges)

2000 2001 2002 2003 2004 2005 2006 2007

(1) Same-hospital (2) Compact adjustment calculations discontinued beginning in Q1’07.

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Improved Collections Have Reduced Bad Debt Expense

Collection Rate

100%

0%

Degree of Insurance

Fully Insured Uninsured

98% - Q4’07

60% - Q4’06

13% - Q4’07

0% - Charity Care

8% Pre-Compact

97% - Q4’06

32% - Q4’06

64% - Q4’07

36% - Q4’07

Managed Care

Balance-After

Blended “Self Pay”

Uninsured

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$572 million in cash at 12/31/07

� $300 million – capital expenditures in Q4’07� Capital infusion announced in mid-2006 completed� $22 million capex in Sierra Providence East Medical

Center, El Paso� Completed capital spending catch-up

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Capital Expenditures in 2007

6Seismic and ADA Requirements

267Renovations, Facility Maintenance and Routine Equipment

107Clinical Information Systems and Technology

729Total 2007 Capital Expenditures – continuing operati ons

56Basic Clinical Equipment Replacement, including beds

88Major Equipment▪ 6 Cath Labs ▪ 2 Surgical Robots

▪ 21 CT Scanners ▪ 2 Linear Accelerators

▪ 6 MRIs ▪ Other (C-Arms, Mammography, Nuclear Med, etc)

138Other Construction and Expansion Projects▪ 2 New Patient Towers ▪ 1 MOB & Parking Garage

▪ 1 Cancer Center ▪ Other Expansion Projects

67New and Replacement Hospital Construction

($mm)

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$127mm – adjusted net cash provided by operating activities - continuing operations

�Working capital did not generate at level of prior outlook

� Book overdrafts declined $63mm from prior year� $32mm build-up in accounts receivable on higher revenues and

higher collectability

� 2008 outlook anticipates $60mm improvement from A/R turns

� Restoration of more normal overdraft

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2008 Cash Walk Forward

5833Other Investing Activities

(5)(5)Net Financing Activities

300200Cash Outlook December 31, 2008

(650)(600)Capital Expenditures

(55)(80)Net cash provided by (used in) operating activities from discontinued operations

(103)(103)Payments against reserves for restructuring charges, litigation costs and settlements

(17)(17)Income Tax (payments) refunds, net

500400Adjusted Net Cash Provided by Operating Activities

572December 31, 2007 Beginning Cash

HighLow

($mm)

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Enhancing balance sheet efficiency

� 2007 initiatives:� $129mm added to cash in 2007

� Includes $97mm added in Q4’07

�Corporate level initiatives :� Monetized insurance sub investments� Liquidated cash surrender value of insurance policies

� $400mm - 600mm incremental cash anticipated over next 24 months� MOB sale� Broadlane recapitalization� Sale or monetization of excess land, buildings, and

underutilized assets

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2008 Capital Expenditures

� $600 to $650 million� Includes:

� $82mm for new hospital construction� $35mm for seismic and ADA� $25mm for Outpatient growth

�Maintenance capital expenditures� $500mm for 2007 depreciation + amortization + lease

expense

� Approx $400mm annual capex on core 53 hospitals 2003 to 2005 . . . excluding physical expansion and new hospital construction

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Illustrative, Sample Walk-Forward Path to $1 billion Adjusted EBITDA in 2009

60(91)15177(116)193Volume (1)

1,000

21

29

(286)

-

34

292

-

-

850

EBITDA

850

2

100

(261)

33

36

262

(60)

(40)

701

EBITDA

---(60)Georgia/ Florida Medicaid

(20)312(18)280Pricing – Base Line Increase (2)

(8,550)9,400(8,151)8,852Prior year

---(40)Cost Report Adjustments

(8,550)

(86)

100

(261)

(18)

-

Cost

(286)--Costs – Base Line Inflation (5)

9,400

88

-

51

36

Revenue

9,985

88

-

-

34

Revenue

(8,985)

(67)

29

-

-

Cost

Total (8)

Other (7)

Cost Reduction Initiatives (6)

Other Initiatives (4)

Managed Care (3)

($ millions)

(1) Annual admissions growth of 1.5 percent, outpatient visit growth of 2.5 percent using 2007’s average pricing with 40 percent margin assumption on incremental revenues.

(2) Base line pricing increases of 3.2 percent for 2008, and 3.3 percent for 2009. These assumptions are before discrete initiatives valued in this analysis, and include certain assumptions on adverse mix change

(3) Price increases in existing contracts and anticipated future increases.(4) Full-year impact of 2007’s ED acuity capture effort and incremental adjustments to chargemaster.(5) Inflation rate of 3.5 percent reflects normal merit increases, union contract adjustments and other items before discrete initiatives valued in this analysis.(6) Full year impact of cost initiatives initiated in 2007.(7) Includes impact of Sierra Providence East Medical Center (El Paso), Coastal Carolina Hospital, physician practices and other non-acute operations.(8) Various risks including volume growth, volume mix, and bad debt create at least $75 million in uncertainties for 2008 performance, hence the adjusted EBITDA

outlook range from $775 mm to $850mm. 2009 uncertainties exceed those identified for 2008. This schedule is not intended to provide a series of spot estimates or line item guidance. Other combinations of line item performance could produce the same or higher, or lower results.

2008 2009