Tenet to spin off revenue cycle subsidiary as separate company
Tenet Healthcare will pursue a tax-free spinoff of its Conifer Health Solutions business as a separate and independent publicly traded company.
Conifer provides managed solutions to health systems to help them manage populations, enhance consumer engagement, manage risk and improve financial performance.
“This decision supports our longstanding objectives to maximize the value of Conifer, build on its strong growth potential and deliver the best outcome for Conifer and Tenet shareholders,” says Ronald Rittenmeyer, executive chairman and CEO of Tenet, a national provider organization with 65 hospitals and 500 outpatient centers.
"Pursuing a spinoff is an important step in Conifer’s evolution, and we believe the business is well-positioned to capitalize on its growth opportunities as a standalone company,” he adds.
Conifer presently manages more than 17 million unique patient interactions and generates about $25 billion in net patient revenue annually. In 2018, the company had more than $1.5 billion in revenue and $357 million of adjusted earnings before various expenses, which was a 20 percent increase over 2017.
The spinoff is targeted to be finalized by the end of the second quarter in 2021. Conifer also will get a new leader, as CEO Stephen Mooney, one of the leaders in creating Conifer in 2008, has resigned from his position and Tenet has started a national search for a permanent CEO.
For now, Kyle Burtnett, with 15 years of healthcare experience and the chief operating officer at Conifer, has become its interim CEO.