IIA CAE Spotlight

CAE Spotlight Dennis McGuffie VP, Audit Services Tenet Healthcare Corporation December 6, 2012

Tenet By the Numbers 500,000 inpatient visits annually 4 million outpatient visits annually 69,000 babies delivered annually 57,000 employees 49 acute care hospitals in 11 states More than 100 outpatient centers Net Revenue appx. 9B *All numbers as of CY11 2 Our mission is to improve the quality of life of every patient who enters our doors.

For-profit compared to not-for profit 3

Revenue Cycle Services Everything we do at Conifer Health Solutions is rooted in our commitment to your hospital’s mission and your patients. 4

Health Care Reform Core Provisions Coverage 55 Expands coverage through Medicaid, new state-based insurance exchanges and other provisions Establishes new consumer protection standards for health insurers Cost Streamlines administrative processes Cuts waste, fraud and overpayments Incentivizes more value-based service and alignment among providers Quality Penalizes poor performance by physicians and hospitals Incentivizes wellness and prevention Establishes quality standards for private insurers

Audit Priorities Efficient Reduce cost and the burden of audit including the hours required to perform an audit Relevant Identify risks that matter most to management and position the function to respond quickly to changing demands and emerging risks. Flexible Transparent 6 Incorporate the broadest set of facts in a risk assessment. Make the audit process transparent.

Use The Company Intranet 7

Who We Are 8

Where We’re Planning to Go 2012 SOX Acquisitions / Divestitures 2013 December January Corp BCC (FY2012) Corp ITGC (FY2012) February Corp BCC (FY2012) Corp ITGC (FY2012) March April Group 2 Physician Practices Group 3 Physician Practices Outpatient Services Outpatient Services Outpatient Services Ambulatory Surgery Centers Ambulatory Surgery Centers Ambulatory Surgery Centers FY2012 Government Programs Hospitals *D&T visit Doctors Hospital North Shore Medical Center East Meaningful Use HOSPITAL (D1 - MU Start) Stage 1 Group 2 Locations Stage 1 Group 3 Locations Data Analysis Dashboards Dashboards Compliance Effectiveness Review Conifer Revenue Cycle Other D&T Asst Svcs SAG Referral Source Clinical Research May Group 1 Physician Practices FY2012 Corporate / Processlevel 9 November Corp BCC Remediation Corp ITGC Remediation 1Q June Corp BCC Corp ITGC Proxy / Corp Travel & Entertainment Miami Medical University Hospital Patient Communications D&T Asst Svcs Physician Relocation Recons D&T Asst Svcs Referral Source Referral Source CRSA Review: Group CRSA Review: 1 Group 2

Tools We Use 10

What Are The Results – Trending Reports 11

What Are The Results – Tickmarks 12

What Are The Results – Webinars 13

Webcast Content Survey Results – what you said : what we did FAQs – recent questions received Audit Results and Trends General SOX Functional or Process Drilldown on most frequently reported comments Recent policy developments ERM SAG 14

Recognizing Great Results You’ve heard of: » The Grammy » The Emmy » The ESPY » The Tony 15

We Give Out Audi Awards A 5 Bar doesn’t mean everything is perfect. 5 Bar results do tell us that the hospital team is striving to meet the important financial, compliance, and operational objectives. There are no “silver bullets” The little things do matter Controls foster discipline and efficiency 16

Worst Audit Responses 17

“Our IT Director locks the backup tapes up in his car every night – is that OK?” 18

“Our CEO is going to be really upset when he sees this report!” 19

“Ted will implement those new cash controls as soon as he gets back from vacation” 20

“No, we were recording the entries in a timely manner – they were just backwards.” 21

“Oh – we were doing that – you just didn’t talk to the right person about it when you were here.” 22

VP, Audit Services Tenet Healthcare Corporation CAE Spotlight December 6, 2012. 2 Tenet By the Numbers 500,000 inpatient visits annually . Corp ITGC Remediation Corp BCC (FY2012) Corp ITGC (FY2012) Corp BCC (FY2012) Corp ITGC (FY2012) Corp BCC Corp ITGC Acquisitions / Divestitures Group 1