Tenet Healthcare Corporation Announces New CEO

Tenet Healthcare Corporation has named a new chief executive officer (CEO) as part of its long-term leadership succession plan, according to a recent announcement.

The large healthcare services company headquartered in Dallas announced yesterday that Saum Sutaria, MD, will take over as CEO starting September 1, 2021. Sutaria is currently president and chief operating officer at Tenet and will replace Ron Rittenmeyer.

Rittenmeyer will continue in his capacity as executive chairman of the company and the board through 2022. He had replaced former Tenet CEO Trevor Fetter when he stepped down as CEO earlier than expected in 2017.

“I am honored to serve as CEO and continue our work in building a truly unique and diversified healthcare enterprise,” Sutaria stated in the announcement. “Tenet is a remarkable company with a mission that embraces the many different dimensions of healthcare that we are always striving to improve.”

“The company has a deep commitment to our communities that we serve with integrity, value strong partnerships with our physicians, ensure compliance and deliver the quality that sets us apart from others. I look forward to continuing to work alongside Ron, our leadership teams and our incredible caregivers and staff on the opportunities ahead,” Sutaria continued.

Sutaria previously worked for McKinsey & Company where he led healthcare and private equity practices on strategic, operational, and financial issues. He received an MD from the University of California, San Diego and finished post graduate training at the University of California at San Francisco.

He has been with Tenet since January 2019 as chief operating officer and, later, president.

The news comes on the heels of Tenet’s second quarter results. The company reported net income from continuing operations of $120 million, a significant increase from $88 million from the second quarter of 2020.

Improved income results partly stemmed from an increase in healthcare services compared to the height of the COVID-19 pandemic. Tenet reported that same-hospital adjusted admissions were up by 23.9 percent compared to the second quarter of 2020, while same-hospital net patient revenue per adjusted admissions increased by 7.4 percent compared to the same period.

Same-facility system-wide ambulatory surgical cases also rose by 68.2 percent, the company announced.

Tenet also sold several Miami, Florida-area hospitals for $1.1 billion during the second quarter of 2021.

The company expects continued growth and operational improvements, according to the second quarter results.

“Our second quarter results continue to reflect our long-term strategy and transformation progress, resulting in our ability to adapt and perform on a consistent and sustainable trajectory,” Rittenmeyer said at the time. “We continued to focus our efforts on the expansion of healthcare access in alignment with community need, including investments in high-acuity service lines for patients with chronic conditions and the addition of lower cost ambulatory settings in key locations around the country.”