CourseCode:MKT501

CourseTitle:Marketing Management

Course Instructor:Rajesh Dorbala

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Academic Task Title: Company Product Analysis

26 Jan 2016

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Date ofsubmission:23 Feb 2016

Students Reg. no: 11201920

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1. INTRODUCTION
Tenet Healthcare Corporation is a multinational investor-owned healthcare services company
based in Dallas, Texas. Through its brands, subsidiaries, joint ventures, and partnerships, as of
June 2015 Tenet operates nine facilities in the United Kingdom and over 400 outpatient
centers in 16 states. Also in the US, Tenet operates 20 "short-stay" surgical hospitals and 87
general acute-care hospitals in 14 states, primarily in California, Florida, Michigan and Texas.
Tenet has more than 20,000 licensed beds and 130,000 employees, and the companys hospitals
offer acute, coronary and critical; operating and recoveryrooms; clinicallaboratories and pharmac
ies; and radiology, respiratory, oncology, orthopedic, physical therapy and organ transplant
services. Tenet also operates six health plans and 12 accountable care networks.
Since its founding in 1967, Tenet has launched a number of brands and acquired several large
health care companies. In 2008 Tenet founded Conifer Health Solutions, which serves more than
700 clients in the healthcare industry, including nearly 300 hospitals. As of 2015, Conifer
processes $25 billion in net revenue annually and operates in 42 states. Tenet launched MedPost
Urgent Care in May 2014, which is a network of urgent care centers based in the lower United
States. In 2013, Tenet completed its acquisition of Vanguard Health Systems, Inc., an investorowned hospital company whose operations complemented Tenet's existing business. The
acquisition created the third-largest investor-owned hospital company in the U.S. in terms of
revenue and the third-largest in number of hospitals owned. In June 2015, Tenet acquired United
Surgical Partners International (USPI), which made Tenet the largest operator of outpatient
surgery centers in the United States. Shortly after, Tenet moved from No. 229 to No. 170 on
the Fortune 500.
Tenet Healthcare is here to spread the doctrine of good health. The for-profit company operates
80 acute care hospitals with more than 20,800 beds in 14 US states, including California, Florida,
and Texas. They range from small community facilities offering basic care to major hospitals,
such as the 650-bed Brookwood Medical Center in Birmingham, Alabama. In addition to its
acute care holdings, Tenet also operates specialty hospitals, skilled nursing facilities, physician
practices, outpatient centers, imaging centers, health plans, and other health care units that form
regional networks around its main hospitals. It also operates Conifer Health Solutions, a patient
billing and communications company.

2. PRODUCTS & SERVICES OFFERED

2.1 HOSPITALS
Tenet Healthcare is here to spread the doctrine of good health. The for-profit company operates
80 acute care hospitals with more than 20,800 beds in 14 US states, including California, Florida,
and Texas. They range from small community facilities offering basic care to major hospitals,
such as the 650-bed Brookwood Medical Center in Birmingham, Alabama. In addition to its
acute care holdings, Tenet also operates specialty hospitals, skilled nursing facilities, physician
practices, outpatient centers, imaging centers, health plans, and other health care units that form
regional networks around its main hospitals. It also operates Conifer Health Solutions, a patient
billing and communications company.
2.1.1SERVICES

ER Check-in Online: When you have a non-life threatening emergency, there's

no need to spend time waiting in the ER when you could wait at home. Use our
online registration tool, and check in to the ER online.
My Health Record: Managing the details of your health history can seem hard,
but it doesn't have to be. With My Health Record, you can access your health
records, share information with doctors, and save time paying bills all from the
comfort and privacy of your home.
Symptom Checker: Think you might have a cold? Or could it be the flu? Use
their online symptom checker to find out what's going on fast.
Health Library: If you have questions or concerns about your health, a source of
trusted information is the best place to start. Use their Health Library to check
your symptoms, research common conditions, read recent health news or find
your new favorite recipe.
Share your story: Patients can share their story as well as read others stories to
know they have been treated at the hospital.

Here is a list of Acute Care Hospitals and the services they offer :
PALM BEACH GARDENS MEDICAL CENTER
Palm Beach Gardens Medical Center is a 199-bed acute care hospital serving the residents of
Palm Beach County and the Treasure Coast. They offer a wide range of treatments, from heart
care to advanced brain and neurological services.

Gastroenterology
Heart And Vascular
Neurosciences
Orthopedics
Rehabilitation
Surgery
Women's Health

ST MARYS MEDICAL CENTER

Emergency/ Trauma

Heart And Vascular

Mother And Baby

Neurosciences/ Stroke

Orthopedics/Spine

Rehabilitation

Surgical Weight Loss

PALM BEACH CHILDRENS HOSPITAL

Cancer

Heart And Vascular

Neurosciences

Orthopedics

Rehabilitation

Support Services

Surgical Weight Loss

GOOD SAMARITAN MEDICAL CENTER

Cancer

Digestive Disease Institute

Heart And Vascular

Luxury Patient Suites

Midtown Imagining

Mother And Baby

Neurosciences

Orthopedics

Sleep Disorder Center


Surgery

My New Self Surgical Weight Loss

The Palms Medical Detox

DELRAY MEDICAL CENTER

Cancer

Heart And Vascular

Neurological Surgery

Neurosciences

Orthopaedics

Rehabilitation

Sleep Center

Surgery

Surgical Weight Loss

Wound Care
WEST BOCA MEDICAL CENTER

Heart And Vascular

Mother And Baby

Neurosciences

Orthopaedics

Outpatient Services

Pediatrics

Rehabilitation

Surgery

Urology

Women's Health
FLORIDA MEDICAL CENTER

Heart And Vascular

Neurosciences

Orthopaedics

Rehabilitation

Robotic Surgery

Surgery

Urology

Surgical Weight Loss Center Of Excellence

2.2 HEALTH PLANS

2.2.1 PHOENIX HEALTH PLAN
Serving Arizona Families Since 1983
Phoenix Health Plan (PHP) is a contracted health plan with the Arizona Health Care Cost
Containment System (AHCCCS). Phoenix Health Plan (PHP) is committed to providing
exceptional health care and customer service to our members in partnership with the Arizona
Health Care Cost Containment System (AHCCCS).
PHP Members Can Expect:

A health plan that respects values, customs and traditions.

Access to quality and convenient health care services through our large network of
providers.
Friendly customer service representatives who speak more than 140 languages.
Help when members need it through our 24-Hour Nurse Advice Line and Urgent Care
Centers.
Educational resources on healthy eating and staying healthy
Assistance with Transportation
Case Management Services
Continuity of care

Phoenix Health Plan members can count on more than 3,780 physicians and providers, nearly 28
hospitals, urgent care centers, a 24-hour Nurse Advice Line and transportation services.
PHP members receive health care delivered by providers who work hard to understand our
members' values, customs, attitudes and behaviors within a cultural context. The results are
better health outcomes and patient satisfaction. At PHP, we offer translation services and
bilingual customer service representatives, but we go beyond the very basics of communication.
PHP celebrates the health of every individual involved with our organization. Below is a list of
things we consider when meeting the health care needs of our diverse .

2.2.2 HARBOUR MEDICARE PLAN

Serving Michigan Residents in Wayne, Macomb and Oakland Counties.

Benefits at a Glance
Maximum Out-of-Pocket (MOOP)

$3,400 Annual Limit

Primary Care Visit

$10 Co-Pay
Specialist

$45 Co-Pay
Inpatient Hospitalization

$245/Day (Days 1-7) | $0/Day (Days 8-90) Annually

Urgently Needed Care

$60 Co-Pay
Emergency Care

$75 Co-Pay
Vision

$15 Co-Pay for Routine Eye Exam

Transportation

$0 Co-Pay for up to 10 round trips per year to your medical appointments

Silver & Fit Fitness Program

$50 Deductible

2.2.3 GOLDEN STATE MEDICARE HEALTH PLAN

Golden State Medicare Health Plan is an HMO plan with a Medicare contract.
Enrollment in Golden State Medicare Health Plan depends on contract renewal.

Golden State Medicare Health Plan, Golden (HMO) has a network of doctors, hospitals,
pharmacies, and other providers. If you use the providers that are not in our network, the
plan may not pay for these services. You must generally use network pharmacies to fill
your prescriptions for covered Part D drugs.
Our plan members get all of the benefits covered by Original Medicare. For some of
these benefits, you may pay more in our plan than you would in Original Medicare. For
others, you may pay less. Our plan members also get more than what is covered by
Original Medicare. Some of the extra benefits are outlined in this booklet.

2.3 MEDPOST URGENT CARE CENTERS

Tenet Healthcare operates MedPost Urgent Care locations across the country, treating patients for
a wide range of medical needs and providing immediate attention and treatment at
lower costs than emergency room visits.
These urgent care centers are ideal for the treatment of infections, seasonal allergies and sports
injuries, and they offer referral options and coordination for specialty care when
necessary.
MedPost Urgent Care centers are one way that Tenet is increasing access to healthcare for
everyone by providing a place for high-quality, convenient, walk-in care at affordable
costs. Patients can even check in to MedPost facilities online or by phone prior to their
visits to secure places in line and avoid long waits.

2.4 United Surgical Partners International (USPI)

United Surgical Partners International (USPI) is an experienced and trusted partner to more
than 50 health systems and 4,000 physicians across the United States, delivering high-quality
surgical and imaging services in more than 200 facilities across the country.
Through its partnership model, USPI works with health systems and physicians to expand their
convenient ambulatory networks and enhance patient access to care. With more than 11,000
employees, USPI is the largest provider of ambulatory surgeries in the United States.

2.5 Aspen Healthcare

Aspen Healthcare operates nine private healthcare facilities in the United Kingdom, including
four hospitals and five ambulatory clinics and surgery centers. The company offers patients a

range of private healthcare and clinical services, including outpatient procedures, complex
surgeries, diagnostic screening and specialized cancer treatments.
Aspen has 1,650 employees who are committed to providing superior service and high-quality
care for patients and their families. The company was formerly owned by United Surgical
Partners International from 2000-2012.

3. Product Mix
The complete range of products (goods or services) present within a company is known as
the product mix.The collection of products and / or services the business decides to offer
represents that business's product mix.
All of the components, such as product line, product length, product width, and product
depth make up that mix.
A product line is a group of these products associated by function, by consumer group, by
distribution channel or by price range. A company could have one line or several lines, but all the
products within this line or lines would be the product mix.In any multi brand organizations,
there are numerous products present. None of the organizations wants to take the risk of being
present in the market with a single product. If the company has only a single product, than the
demand of the product will be too great or the company does not have the resources to expand
the number of products it has.When establishing a product mix, a business must decide where it
places itself in terms of its target market.
The Product Line of TENET HEALTH is Hospitals, Health Plans, Urgent Care Centers,
USPI and Aspen Health Care.
Product Mix has four different decisions:
1. Product Mix Width:It is the number of different product lines the company carries.
There are five different product lines in tenet health , hence the product width
of TENET HEALTH is 5.
2.

Product Mix Length: It refers to the total number of items a company carries
within the product lines. Tenet Health has 80 hospitals, 3 health plans , 50 medpost
urgent care centers, 200 USPI and 9 Aspen Health care centers. Therefore, the
product mix length for Tenet Health care is 342.

3. Product Mix Depth: It refers to the number of versions offered for each product in
the product line. Tenet Health has 80 hospitals, 3 health plans , 50 medpost
urgent care centers, 200 USPI and 9 Aspen Health care centers.

4.

Consistency: Consistency of a product mix refers to how closely relate the product
lines are in terms of end use, production requirements, distribution channels or any
other way. Tenet Health provides its health care services to its customers in a very
organized manner and take care of its patients very responsibly. Therefore , the
product mix of Tenet Health is consistent.

4. COMPETITORS
Universal Health care and HCA holdings are the biggest competitor to Tenet health
care.
Universal Health Services Inc. is a fantastic health care stock that you should most definitely
have on your radar. Sure you could choose from a competitor like Tenet Health Care or HCA
Holdings but why bother? I say this because Universal Health Services is outpacing both Tenet
Health Care and HCA Holdings in its margins and is pretty close on all related metrics.
The company itself owns and operates acute care hospitals, behavioral health centers, surgical
hospitals, ambulatory surgery centers, and radiation oncology centers. Very similar business
models to Tenet Health Care as well as HCA Holdings. The companys hospitals offer various
services, including general and specialty surgery, internal medicine, obstetrics, emergency room
care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services,
and/or behavioral health services. It has operations in the United States, Puerto Rico, and the
U.S. Virgin Islands. So why not but Tenet Health Care or HCA Holdings? The answer is that
Universal Health Services is outperforming.
Tenet Healthcare Corporation provides health care services, primarily through the operation of
general hospitals and related health care facilities. Though the company also owns other
facilities including a specialty hospital and several skilled nursing facilities, such facilities are
also operated by its competitors and do not account for a major portion of Tenets revenues. As
such, our analysis will focus primarily on for profit hospital systems,not including psychiatric
hospitals. Tenets competitors include HCA, Health Management Associates, Community Health
Systems, Lifepoint Hospitals, Triad Hospitals, and Universal Health Services

4.1 Internal Rivalry

The For-Profit Managed Healthcare Industry is one characterized by very strong competition.
Though hospitals today increasingly belong to chains, the vast majority of hospitals are small
and independently owned. It is not clear that market share is important to profitability in the
industry as there do not appear to be significant economies of scale in the operation of hospitals.
Nevertheless, this is a very competitive industry with large operators fighting for market share.

Due to the nature of the service provided, each individual hospital, whether it belongs to a chain
or not, faces competition from other local hospitals. Though price elasticities of demand have
increased as insurance companies have increasingly steered patients to the lowestpriced
hospitals, medical care is still a needed service. Patients generally use those hospitals closest to
them unless prevented by their insurance provider.
While firms in the industry compete fiercely with each other, players have become increasingly
focused on challenges posed by external economic factors on the industry in recent years.
Demand and profitability in the nations hospital industry have been affected by several variables
outside the direct control of the participating firms.
There are two primary factors that may likely affect the growth rate of the uninsured population
moving forward. Continued job growth is important in slowing increases in the uninsured
population and may also curtail the recent rise in self-pay revenue.vi Selfpay revenue is revenue
the hospital earns that patients must pay themselves rather than being covered by insurance; this
includes deductibles and co-payments made byinsured patients as well as remittances by
uninsured patients. .Though employment and payrolls have strengthened in recent years, a
comparably powerful factor that has negatively affected the rise of the uninsured and hospital
profitability is the decline in employer-sponsored health plans.
A continued rise in insurance premiums is forcing many employers, especially smaller
businesses, to scale back or drop health coverage for their employees. Despite this negative
trend, lower unemployment rates combined with a growing senior population may be able to
sustain demand for hospital services in the near future. An important question is the profitability
of the care that stems from that demand.

4.2 Problems and Solutions

As a healthcare provider, there is little Tenet can do with regard to the aforementioned
macroeconomic challenges other than to endure them until they fade. One factor that may lessen
these challenges as the economy improves is continued job growth. Job growth is important in
reducing the proportion of the population that is uninsured and may stimulate growth in
employee health plans. The decline in employer-sponsored health plans due to higher premiums
in recent years has been a significant cause of the rise in the uninsured population and in the
growth of self-pay revenue as well. Standard & Poors claims that the trend will continue in
2006, partially offsetting the benefits of lower unemployment rates and rising payrolls.xii
Additionally, job growth may contribute to the supply of nurses, a source of rising costs for Tenet
in recent years.
Favorable demographics, which include a growing senior population thanks to aging baby
boomers, may also stimulate demand for hospital services. Regardless of the macroeconomic
factors troubling Tenet, the companys strategy for the near future should nevertheless be the
same. It is important that Tenet take back some of the market share it has lost to competitors in
recent years,as well as improving its profitability. Tenet has taken a step in the right direction by

divesting its unprofitable hospitals rather than continuing to divert valuable resources to operate
them.
But, there are two things Tenet must do to increase its admittance levels. The company should
lower its prices to more competitive levels, giving self-pay patients and those who have not met
their deductibles a greater incentive to choose Tenet. Tenet should also offer doctors greater fees
as a percentage of revenue generated to induce them to admit more patients to Tenet hospitals
than those of its competitors.Pandora group believes that once Tenet has restored confidence in
its business, the company should shift its focus to specialty hospitals. Specialty hospitals are
able to provide higher quality care than acute care hospitals and in a more efficient manner
through their specialization.
Specialty hospitals also do not face the same level of competition from nonprofit hospitals, a
source of strong competitive pressure for Tenet and other for-profit acute care hospital operators.
The higher quality care and focus on more profitable, complex procedures at specialty hospitals
make nonprofit hospitals a less close substitute. To avoid cannibalizing its general hospitals,
Tenet must look to acquire or build specialty hospitals in regions it does not currently operate.
The company should gradually divest more of its less profitable acute care hospitals and shift its
business focus to specialty hospitals.
It is Pandoras firm belief that the most significant problem at Tenet is the poor reputation it has
acquired in the eyes of doctors and investors. Tenets legal troubles make patients less likely to
choose its services over those of a comparable local hospital and doctors less likely to admit
patients to its hospitals. This in turn leads to lower bed occupancy and lower profitability for the
company on a hospital-by-hospital basis. More than anything else, Tenet needs time to show it
has cleaned up its act. The company has replaced its management team and refocused its
resources on its 69 core hospitals. It is now in a position to rebuild its reputation within the
medical community and trust with investors. An important step to convincing investors the
companys troubles are in the past is to resolve legal troubles. The sooner Tenet can reach
settlement on the various lawsuits and investigations it is playing host to, the sooner the
economic costs to the company will become known and the investor uncertainty can die down.
Tenet should also restore its reputation through a public ad campaign that includes a code of
ethics. Lastly, to ensure that the company continues to operate legitimately, it is important that
Tenet increases oversight of its physicians operations. Administrators at individual hospitals
must be held more accountable for the actions of their hospitals physicians.

5. REFERENCES
1- http://www.tenethealth.com
2- Strategic Report for Tenet HealthCare-Pandora Group
3- http://www.hoovers.com/company-information/cs/companyprofile.TENET_HEALTHCARE_CORPORATION.9910d64d82410ec3.html
4- http://www.tenetflorida.com/en-us/aboutus/pages/hospitals.aspx

5- http://www.nasdaq.com/article/the-zacks-analyst-blog-highlights-hca-holdingstenet-healthcare-universal-health-services-and-lifepoint-health-press-releasescm491644