Tenet Healthcare saw its operating margin for the second quarter come in at 11.9 percent, the same level as Q2 of 2022, when the Dallas-based for-profit giant reported first-half results at the end of July.
While the figure was slightly down on a 12.8 percent margin for the first half of 2022, it was the highest second-quarter operating margin for the four largest for-profit health systems, which include Nashville Tenn.-based HCA Healthcare, King of Prussia, Pa.-based Universal Health Services and Franklin, Tenn.-based Community Health Systems.
Such financial data will be occupying the system's new CFO, Sun Park, as he transitions fully to the role when current CFO Dan Cancelmi retires at the end of 2023.
Mr. Park, a former AmerisourceBergen financial executive, is currently acting in an executive vice president role for Tenet as Mr. Cancelmi mentors him to take on full CFO responsibilities at the start of next year. Mr. Cancelmi will stay on in a part-time role until April 2025, Tenet said in August.
"I am pleased to welcome Sun to Tenet and believe his leadership experiences, coupled with his data-driven and outcomes-oriented approach, will serve our company well as we continue to execute on our strategic priorities," Tenet CEO Saum Sutaria, MD, said in a news release welcoming Mr. Park. "Sun's well-rounded leadership experience in corporate and operational finance will enable us to continue to unlock value for our shareholders as we continue to transform our portfolio."
One key area for Tenet will be its focus on its ambulatory business, United Surgical Partners International, which reported second-quarter revenue of $942 million compared with $771 million in the same period in 2022. Tenet is forecasting annual revenue of up to $3.8 billion for the segment in 2023 with an increase of up to 6 percent in patient volumes.
The 61-hospital system is also boosting its board to help navigate such subsequent strategic moves.
Tenet appointed former Missouri Sen. Roy Blunt to its board in August. Tenet now has 12 board members, 11 of whom are independent members.
At the same time as appointing the former senator, the board voted Dr. Sutaria as its chair. He has served as Tenet's CEO since September 2021 and has been a member of the board of directors since 2020. He previously served as Tenet's COO.