Firm Analysis on Tenet Healthcare Corporation, Free Essay

Published: 2022-04-07
Firm Analysis on Tenet Healthcare Corporation, Free Essay
Type of paper:  Term paper
Categories:  Management Organizational culture
Pages: 5
Wordcount: 1333 words
12 min read

Executive Summary

Tenet Healthcare Corporation is amongst the largest healthcare organization that operates many fundamental healthcare services. This report assesses the organization structure, organization, management, investments, and overall organization culture. The report assesses the financial performance of the organization and the healthcare industry as a whole which assesses the success and profitability factors in the healthcare industry. The report assesses the core competencies of the organization and how it uses its vast resources and capability to acquire a competitive advantage. The report establishes the different operational and market challenges that affect Tenet Healthcare Corporation and the healthcare industry as a whole.

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Company History

Tenet Healthcare Corporation (Tenet) is a healthcare services organization that was incorporated in 1975 and operates regionally in large urban setups in the United States of America. The organization business segments are divided into hospital operations, conifer and ambulatory care operating in many hospitals in both the United States of America and the United Kingdom using subsidiaries, joint ventures and partnerships. The organization has a subsidiary called Connifer Holdings Inc. which provides healthcare plans, insurance services, physicians practice and value-based care to different healthcare systems and individual hospitals. The organization hospitals offer acute care services such as radiology, clinical laboratories, pharmacies, operating and recovery rooms which are highly equipped and also boast of high trained personnel with the aim of delivering a value-oriented healthcare. The hospitals operated by Tenet Health Corporation also has coronary care units that offer various services to people with heart problems. The corporation operates many subsidiaries and also has many partnerships which have increased its influence in healthcare business globally (Company Profiles).


Tenet Healthcare Corporation is a diversified corporation that offers various healthcare solutions through its subsidiaries and partners. The organization operations are regionally planned and as at December 31st, 2017 the corporation together with its subsidiaries was in charge of 76 general hospitals, 470 outpatient centers that provide care to people living in urban settlements around the United Kingdom and the United States major cities and at the same time the corporation has 20 surgical hospitals. The organization operational structure is complex and highly complimented by the subsidiaries, partnerships and joint ventures that ensure that the organization services are value based and at the same time incorporating new technology to reduce cost and promote operations sustainability.

Tenet Healthcare Corporation seeks to develop lower cost solutions for its customers and partners but at the same time ensure high value for the consumers. The corporation has significantly invested in technology as the tide changes from the high number of inpatients to outpatients care as technology has improved communication and delivery of care. Tenet Healthcare Corporation investment in technology is in line with the value-based care as the payers and provider's collaboration aims at shifting the risk to the providers to ensure higher quality products. In the recent past, Tenet Healthcare Corporation has taken steps which aims at streamlining the corporation services and business operations to meet the changing healthcare environment needs. For instance, Tenet Healthcare Corporation has reviewed its product prices with the aim of ensuring that prices are competitive and the organization investments are towards the creation of technology to improve care efficiency. Also, Tenet Healthcare Corporation has realized the need for employee retention and development to ensure evidence-based practice and increase the value of services provided to the healthcare consumers. Tenet has increasingly increased services provided in outpatient lines through joint ventures to benefit from the development of new technology while engaging the accountable care organizations to increase the healthcare corporation services efficiency and at the same time reducing the operational costs and increasing the clinical integration of healthcare networks to provide quality care in a wide care context.

Purpose of the Study

The purpose of this study is to assess the nature of Tenet Healthcare Corporation operations in relation to the changing healthcare environment while noting the most challenging aspects of care and management that impacts the operations of Tenet Healthcare Corporation. This study will seek to establish Tenet Healthcare Corporation core competencies in a changing healthcare environment and establish the possible recommendations that Tenet Healthcare Corporation can put in place to promote the corporation market viability.

3.0 External Environment Analysis

With consideration to the external analysis of the Tenet Healthcare Corporation, the report will constitute of several factors which in one way or the other include analyzing the macro environment.

3.1 General Environmental Analysis

However, the overall environmental setting involves the analysis of factors occurring as per the effects of the natural happenings, especially through nature among other events. In this section, the general environment, it is composed of components within the PESTEL analysis. They entail the political, economic, sociocultural, technological, legal or regulatory environmental and the impacts posed by various corporates about the company at hand. The section aims at looking into the different factors influencing the healthcare company "Tenet Healthcare Corporation."

Technological changes (ongoing)

Changing User preferences (continuous)

Key Driving Forces

Technological Changes

Technology is a major source of competitive advantage in healthcare business because it increases healthcare services value by a significant margin. Technology today influences every aspect of human life and in healthcare technology can increase healthcare access especially for the patient with chronic conditions which increases the value and quality of healthcare. In the field of medicine and healthcare, the applications and adoption of technology are limitless which makes technology an effective tool for promoting care in all continuums. Technology is changing the way Tenet Health Corporation and its partners deliver healthcare and also the organization response time to healthcare needs of the people. Tenet and its subsidiaries have significantly adopted the new electronic medical records which have improved the accuracy of healthcare diagnosis. The adoption of the electronic health records has improved healthcare safety as well as reduced cost for healthcare access. Cost reduction and value increase are fundamentals of Tenet Healthcare Corporation mission. Diagnostics of the patients have become easy and timely for the patients who have created room for non-invasive procedures for diagnosis and also for administering care. Technological imaging has given physicians more access to patient's anatomy without necessary invasive procedures as a form of diagnosis. Further, Tenet Healthcare Technology is focused on the creation of more advanced technology that can be used to improve patient care and management. Technology is, therefore, a key driving force in healthcare and improves access and also the value of care which promotes care quality and responsiveness.

Changing User Preferences

Consumer preferences are increasingly becoming more and more complex with most of the consumers becoming very aware of their healthcare rights and also options of care available for them due to access to information through technology. Healthcare organizations such as Tenet Healthcare Corporation together with its subsidiaries have to continuously invest in technology and research which can identify the changing preferences and healthcare needs of all the patients. As the needs of the healthcare change, Tenet Healthcare and its subsidiaries should be prepared to adapt to dynamic care to meet the changing needs of the patients.

Demographic Segment

In the demographic analysis of Tenet Healthcare Corporation (THC), there are a series of issues involved with how the dynamics are changing with each passing day. It entails operation of acute hospitals in over 11 states and 90 outpatients' locations in 12 states, with the majority of the hospitals located in California, Texas, and Florida. Currently, the healthcare corporation is providing high-quality healthcare operations to the patients through the outpatient services and hospital services since it is operating a conifer business. Considering the generation of the company's revenues, most of the taxes are resulting from the inpatient services which in 2012, they were around 67%.

However, following the demographic organization of the corporation, the company's outpatient services have rendered a generation of significantly higher revenue than the inpatient services since it is increasing at a rate of 8.2 percent on the basis through every year. In the formulation of the different factor affecting the demographic position, the company has remained focused on the opportunities which include increasing the hospital along with out...

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