Chapter 3

Tenet’s primary activities in its value chain include ambulatory surgery centers via its subsidiary United Surgical Partners International (USPI), acute care hospitals across the US, employment of its own physicians under Tenet Physician Resources (TPR), and revenue cycle management and patient services under Conifer. Its support activities include participation with HealthTrust GPO, a group purchasing organization for healthcare. Through the ambulatory surgery centers Tenet focuses on high margin, lower cost procedures. It is committed to divesting low-performing hospitals. The Global Business Center in the Philippines provides centralized support for all operations. For the ambulatory surgery centers and better performing hospitals, Tenet is implementing advanced technology, including imaging, robotics, and telehealth. Conifer provides support with its eligibility and enrollment services (EES) to assist patients with financial challenges, as well as provide revenue and billing management.

The four criteria to maintain a sustainable advantage are value, rarity, difficulty in imitation, and difficulty in substitution. Through its offerings of ambulatory surgery, high performance hospitals, carefully selected physicians, and revenue cycle and billing services, Tenet provides value for a patient’s healthcare dollar. Compared to its not-for-profit competition, the leaner and more efficient delivery of patient care, with a focus on patient safety and satisfaction, makes Tenet difficult to substitute or imitate.

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