Highlights:

1.9 percent increase in same-hospital admissions

0.4 percent growth in same-hospital paying outpatient visits

2.3 percent growth in same-hospital surgeries

7.5 percent increase in same-hospital commercial managed care

revenues

$171 million in same-hospital adjusted EBITDA, an increase of 9.6

percent

$42 million in adjusted free cash flow from continuing operations

$102 million in capital expenditures in continuing operations

$352 million in cash and equivalents at June 30, 2008, up $74

million from March 31, 2008

DALLAS–(EMWNews)–Tenet Healthcare Corporation (NYSE:THC) today reported a net loss of $15

million, or $0.03 per share, for its second quarter of 2008, compared to

a net loss of $30 million, or $0.06 per share, for its second quarter of

2007. Adjusted EBITDA, defined below, for the second quarter of 2008 was

$163 million, an increase of 4.5 percent, as compared to $156 million

for the second quarter of 2007. Adjusted EBITDA for the second quarter

of 2008 excluded $12 million of EBITDA from USC University Hospital,

which was moved to discontinued operations, and two other hospitals that

were divested during the quarter. The exclusion of USC University

Hospital from continuing operations and the impact of a $16 million

adverse prior year cost report adjustment related to a pending CMS

decision in connection with GME FTE limits and related reimbursement at

one of our hospitals reduced continuing operations earnings per share by

$0.03 per share.

“I am very pleased with our core,

same-hospital growth in admissions as well as the increase in outpatient

visits by paying patients,” said Trevor

Fetter, president and chief executive officer. “Not

only is this the best performance we’ve had

in the last four years, it continues an improving trend and demonstrates

the increasing effectiveness of our strategies around quality, targeted

service lines, and physician relationships.”

“Same-hospital commercial managed care

admissions were up 1.3 percent in the eight service lines representing

the primary focus of our Targeted Growth Initiative,”

said Stephen L. Newman, M.D., chief operating officer. “This

growth was aided by net expansion of our active medical staff, which

grew by 354 physicians in the second quarter, including 119 physicians

at our new hospital in El Paso. We expect the increasing number of

physicians on the medical staffs of our hospitals will prove to be a

robust leading indicator of our ability to sustain our positive trend in

volumes. Pricing increases were also strong in the quarter, with

same-hospital net operating revenues from commercial payers growing by

7.5 percent.”

“We produced $42 million in adjusted free

cash flow from continuing operations in the quarter,”

said Biggs C. Porter, chief financial officer. “We

are substantively unchanged in our outlook for 2008, adjusting it only

for the reclassification of USC to discontinued operations. We are also

maintaining our $1 billion 2009 objective for adjusted EBITDA despite

the sales of USC, our interest in Broadlane, and other assets. These

asset dispositions have an offsetting positive impact on shareholder

value resulting from the reduction in net debt.”

Adjusted EBITDA

Adjusted EBITDA, defined below, was $163 million, or a margin of 7.6

percent of net operating revenues, in the second quarter of 2008. This

represents an increase of $7 million, or 4.5 percent, from $156 million

in the second quarter of 2007, and a margin decline of 20 basis points

as compared to an adjusted EBITDA margin of 7.8 percent in the second

quarter of 2007. Adjusted EBITDA was $379 million for the first six

months of 2008 as compared to $337 million for the first six months of

2007, an increase of $42 million, or 12.5 percent.

Same-hospital adjusted EBITDA, defined below, was $171 million in the

second quarter of 2008, an increase of $15 million, or 9.6 percent, from

the $156 million in the second quarter of 2007. Same-hospital adjusted

EBITDA margin increased by 30 basis points to 8.1 percent in the second

quarter of 2008 as compared to a same-hospital adjusted EBITDA margin of

7.8 percent in the second quarter of 2007.

The two leased hospitals that remain in continuing operations but whose

leases will not be renewed reported breakeven adjusted EBITDA in both

the second quarters of 2008 and 2007. The results from these two

hospitals have been excluded from the calculation of adjusted EBITDA as

well as same-hospital adjusted EBITDA. These two hospitals are our

Irvine Regional Hospital and Medical Center and Community Hospital of

Los Gatos. The leases on these hospitals expire in February and May

2009, respectively. The results from these two hospitals will be

excluded from the calculation of adjusted EBITDA in future quarters as

well.

Adjusted EBITDA is a non-GAAP term defined by the Company as net income

(loss) before: (1) the cumulative effect of changes in accounting

principle, net of tax; (2) income (loss) from discontinued operations,

net of tax; (3) income (loss) from leased hospitals whose leases will

not be renewed; (4) income tax (expense) benefit; (5) net gains (losses)

on sales of investments; (6) minority interests; (7) investment

earnings; (8) interest expense; (9) litigation and investigation (costs)

benefit; (10) hurricane insurance recoveries, net of costs; (11)

impairment of long-lived assets and goodwill and restructuring charges,

net of insurance recoveries; (12) amortization; and (13) depreciation. A

reconciliation of net income (loss) to “adjusted

EBITDA” is provided in Table #1 at the end

of this release.

Same-Hospital Data

Same-hospital data excludes the impact of two hospitals: (1) Coastal

Carolina Medical Center, which we acquired on June 30, 2007; and (2)

Sierra Providence East Medical Center, in El Paso, which opened on May

21, 2008. Same-hospital data is the primary form of tabular data

presentation in the narrative sections of this document.

Total-hospital data, including the contribution of Coastal Carolina

Medical Center and Sierra Providence East Medical Center, is provided in

the tabular presentation of data at the end of this document. As a

result of this approach, certain amounts in the narrative section of

this document will not tie to amounts in the condensed consolidated

statement of operations.

At June 30, 2008, there were 52 hospitals in total-hospital continuing

operations, a net decline of two hospitals from the 54 hospitals

reported in total-hospital continuing operations at March 31, 2008. This

change reflects the addition of Sierra Providence East Medical Center in

El Paso, the sale of two hospitals, Garden Grove Hospital and Medical

Center and San Dimas Community Hospital, both in California, and their

reclassification into discontinued operations, and the reclassification

of USC University Hospital into discontinued operations as a result of

the anticipated divestiture of this hospital.

Continuing operations, both total-hospital and same-hospital, include

the results from Irvine Regional Hospital and Medical Center and

Community Hospital of Los Gatos. We previously announced our intent not

to renew those leases. These two hospitals will remain in continuing

operations until their respective leases expire.

Admissions, Patient Days and Surgeries
Admissions, Patient Days and Surgeries					Same-Hospital Continuing Operations
					Q2’08			Q2’07			Change (%)
Commercial Managed Care Admissions					37,381			38,229			(2.2)
Governmental Managed Care Admissions					27,685			23,864			16.0
Medicare Admissions					40,600			40,991			(1.0)
Medicaid Admissions					15,867			16,252			(2.4)
Uninsured Admissions					5,979			5,724			4.5
Charity Care Admissions					2,497			2,479			0.7
Other Admissions					3,439			3,389			1.5
Total Admissions					133,448			130,928			1.9
Admissions excluding Charity + Uninsured					124,972			122,725			1.8
Charity Admissions + Uninsured Admissions					8,476			8,203			3.3
Admissions through Emergency Department					74,025			72,143			2.6
Commercial Managed Care Admits / Total Admits		(%)			28.0			29.2			(1.2) (a)
Emergency Department Admissions / Total Admits		(%)			55.5			55.1			0.4 (a)
Uninsured Admissions / Total Admissions		(%)			4.5			4.4			0.1 (a)
Charity Admissions / Total Admissions		(%)			1.9			1.9			– (a)
Surgeries – Inpatient					40,267			39,901			0.9
Surgeries – Outpatient					53,386			51,613			3.4
Surgeries – Total					93,653			91,514			2.3
Patient Days – Total					657,451			649,207			1.3
Adjusted Patient Days (b)					949,829			930,147			2.1
Patient Days – Commercial Managed Care					148,419			153,096			(3.1)
Average Length of Stay		(days)			4.9			5.0			(0.1) (a)
Adjusted Patient Admissions (b)					194,104			188,775			2.8
(a) This change is the difference between the Q2’08 and Q2’07 amounts shown
(b) “Adjusted Patient Days / Admissions” represents actual patient days / admissions adjusted to include outpatient services by multiplying actual patient days / admissions by the sum of gross inpatient revenues and outpatient revenues and dividing the results by gross inpatient revenues.

All regions achieved admissions growth of 2.5 percent, or better, with

the exception of our Southern States Region, which experienced an

admissions decline of 1.4 percent in the second quarter of 2008. Florida’s

admissions growth was particularly strong with admissions increasing by

3.0 percent. Growth was also strong in Philadelphia with admissions

increasing by 5.1 percent in the second quarter.

Outpatient Visits
Outpatient Visits					Same-Hospital Continuing Operations
					Q2’08			Q2’07			Change (%)
Total OP Visits					959,839			962,420			(0.3)
Uninsured OP Visits					100,733			104,486			(3.6)
Uninsured OP Visits / Total OP Visits		(%)			10.5			10.9			(0.4) (a)
Charity Care OP Visits					4,857			6,886			(29.5)
Charity Care OP Visits / Total OP Visits		(%)			0.5			0.7			(0.2) (a)
OP Visits excluding Charity and Uninsured					854,249			851,048			0.4
OP Surgery Visits					53,386			51,613			3.4
Commercial Managed Care OP Visits					359,823			366,512			(1.8)
Commercial OP Visits / Total Visits		(%)			37.5			38.1			(0.6) (a)
(a) This change is the difference between the Q2’08 and Q2’07 amounts shown

Excluding uninsured and charity outpatient visits, outpatient visits

increased by 0.4 percent in the second quarter of 2008 as compared to

the second quarter of 2007. Our growth in outpatient visits continues to

be adversely impacted by increasing competition from physician-owned

entities providing outpatient services. Approximately half the large

29.5 percent decline in charity visits is attributable to the recent

expansion of a county government clinic near one of our hospitals.

Imaging visits declined by 7,361, or 3.1 percent, more than fully

accounting for the total decline of 2,581 outpatient visits. This was

largely the result of volume losses to a growing number of competing

retail imaging centers.

The 3.4 percent increase in outpatient surgery volume included a 28

percent increase in volumes at our freestanding ambulatory surgery

centers.

Revenues
Revenues ($ in millions)					Same-Hospital Continuing Operations
					Q2’08			Q2’07			Change (%)
Net Operating Revenues					2,175			2,054			5.9
Net Patient Revenue from Commercial Managed Care					886			824			7.5
Revenues from the Uninsured					159			156			1.9
Charity Care Gross Charges (a)					145			150			(3.3)
Provision for Doubtful Accounts (“Bad Debt”)					153			142			7.7
Uncompensated Care (b)					298			292			2.1
Uncompensated Care / (Net Operating Revenues plus Charity Care Gross Charges) (b)		(%)			12.8	Tenet Healthcare Corporation Media: David Matthews, 469-893-2640 [email protected] or Investors: Thomas Rice, 469,893-2522 [email protected] Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89 Get Unlimited Organic Website Traffic to your Website  TheNFG.com now offers Organic Lead Generation & Traffic Solutions