Tenet Health Case Study

12.05.2020 in Case Study
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Tenet Healthcare Corporation is a for-profit organization that John Bedrosian, Leonard Cohen, and Richard Eamer as National Medical Enterprise [NME] founded in 1967 in the United States. The organization grew gradually through the years to the second-largest healthcare organization in the US, acquiring two hundred hospitals in the 1990s. As of 2002, Tenet Health reported satisfactory performance and rapid growth in its assets and profits. The organization obtained more than forty hospitals between the time of its renaming to Tenet in 1996 and 2002. From 2002 to about 2005, Tenet Health experienced some challenges that resulted in a number of restructuring and changes (Teichert, 2012). 

Today, Tenet Healthcare has its headquarters in Dallas (Texas) with sixteen branches in the U. S. states and operates nine facilities in the United Kingdom through its joint ventures, brands, subsidiaries, and partnerships. Specifically, Tenet Health has excelled in offering the following healthcare-related services; critical and coronary care, clinical laboratories, surgery and operations, pharmacies, orthopedic, oncology, radiology, respiratory, organ transplant as well as physical therapy services. In view of its continued success in the healthcare market, this case study explores the readiness of Tenet Healthcare to meet the growing needs of US citizens in the next decade. The discussion of the strategic plan entails an analysis of network growth, resource management, nurse staffing, and patient satisfaction, suggesting the success of the organization, emanates from its strategic plans.

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Readiness to Address US Healthcare Needs in the Next Decade

Through its objectives, mission, and vision, Tenet Healthcare Corporation has adopted strategies that ensure the provision of quality healthcare that would meet the needs of US citizens in the next decade (Tenet Health Corporation, n.d). Considering its activities and strategic plan, the organization seeks to accomplish its mission to ‘help Americans live happier, healthier lives’ (Tenet Health Corporation, NP). To meet the growing needs of Americans within the next decade, Tenet Healthcare continues to collaborate with its partners to develop healthcare solutions across the country. 

Due to its Conifer Health Solutions, Tenet Healthcare Corporation has initiated a program to help employers, hospitals, and health insurance organizations improve their operations, performances, and productivity as well as to meet the health needs of the people they serve. Additionally, through its joint ventures with the United Surgical Partners International, Tenet Healthcare seeks to help health systems provide access to affordable and quality healthcare is a relatively convenient outpatient setting upon a patient’s request. Tenet Healthcare has also developed plans to partner with America’s leading healthcare insurers in order to enhance coordinated care, lower healthcare costs, and contribute to the well-being of American communities through clinically integrated organizations and accountable care. Apart from the potential partnerships with insurers, Tenet Healthcare has six health plans that seek to provide affordable coverage options for employers, retirees, individuals, and families. The organization also demonstrates its readiness to meet needs of the U. S. citizens via active education of the next generation, an initiative with Tenet’s Baptist School of Health Professions in charge (Kezar, 2015). 

Tenet Healthcare Strategic Plan

Tenet Healthcare organization has a four-plan strategy to grow its business in the US healthcare market. It seeks to maintain and expand its market position by enhancing scale and market leadership, initiating value-based healthcare delivery, adopting innovative capabilities, and developing readiness for the exchanges. In its scale and market leadership plans, Tenet expects more acquisition to upscale its 78 acute-care hospitals, six health plans, and more than 170 ambulatory surgery centers. The upscaling and market leadership strategies give Tenet healthcare an advantage over its competitors in twenty out of thirty metropolitan markets (Armental, 2015). 

The value-based healthcare delivery strategic plan focuses on acquisition of a competitive advantage through the value aspects of the organization’s healthcare, including patient satisfaction, quality metrics, and value-based pay. Innovative capabilities reform seeks to boost Tenet’s bottom line, especially in research, innovation, and development areas. Finally, readiness for the exchange strategic plan that entails participation of the organization’s hospitals in exchange plans at all levels, including participation in the lowest-cost silver plans. Moreover, experts predict the latter to be more popular with the target customers in future (Armental, 2015). 

Network Growth

As of 2016, Tenet Healthcare operates six healthcare plans and Conifer Health Solution, which offers healthcare-related services in revenue cycle management, patient communication, and value-based care services. Tenet has 470 outpatient centers in the sixteen U. S. states along with twenty surgical hospitals (short stay) and seventy nine general acute-care centers in the fourteen U. S. states (Tenet Health Corporation, n. D.). Furthermore, the corporation has twelve accountable care networks and six health plans. As of October 2016, the Tenet Healthcare system had more than 130,000 employees and over 20,000 licensed bed capacity facilities.  The recent acquisition of the United Surgical Partners International (USPI) indicated Tenet’s network growth. Accordingly, the USPI increased the number of outpatient centers from 210 to 470 (Tenet Health Corporation, n.d.). The network growth plan focuses on boundary expansion, cost-effectiveness, and profitability. 

Resource Management

Tenet Health’s high assets turnover and satisfactory levels of profitability suggest efficient management of the company’s resources. Following the growth difficulties experienced between 1996 and 2002, Tenet’s management adopted a resource management plan to divest twenty five of its facilities. As a result, it left only sixty-nine core hospitals, and, therefore, the organization focused on its financial management and resource generation (Pollack, 2004). Such restructuring resulted in the increased profitability for the company in 2005, a platform upon which the company regained its market popularity through improved quality delivery. In this manner, Tenet’s management team demonstrated an ability to operate within organization’s means while meeting the needs of every department through reasonable resource allocation. Usually, similar prudent reinvestment of the additional revenue results in the efficient distribution of resources.

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Nurse Staffing

Being one of the few healthcare organizations with a national footprint, Tenet Healthcare nurses can work in a number of stations in the US. Tenet has a nursing team that involves newly trained nurses, fellows, and experienced nurse practitioners seeking to initiate changes in the nursing industry. The organization’s nursing team has an understanding that US citizens need nurses with diverse skills and broad range of specialties. In order to maintain its team of experienced nurses, Tenet Healthcare recognizes and compensates for their contributions. Moreover, the organization inspires nurse practitioners to join its team through competitive benefits (Tenet Health Corporation, n.d.). 

Patient Satisfaction

 Tenet Healthcare seeks to uphold the highest levels of patient care standards with regard to quality and safety. As entrenched in the organization’s strategic plan and mission, Tenet’s employees are committed to the provision of exceptional patient care and experience. The effect has been enhanced through urgent care centers, large network of hospitals, availability of diagnostic imaging centers, surgery centers, and satellite emergency departments (Tenet Health Corporation, n.d.). 


Despite the challenges that Tenet Healthcare initially faced, it initiated a four-stage strategic plan that seeks to enhance its scale and market leadership, ensures quality through the value-based healthcare delivery, the introduction of elaborate research and innovation techniques, and readiness for low-cost exchanges. Moreover, Tenet Healthcare has an effective resource management plan that focuses on reinvesting of the company’s additional revenue. With an improved network and recent upscale, Tenet Healthcare appears ready to meet health needs of US citizens within the next decade.

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