After a two-year strategic review of what to do with Conifer, a revenue cycle management provider and unit of Tenet Healthcare, it was announced yesterday that the unit will be spun off into a separate publicly traded company.
At the same time, Stephen Mooney, the Chief Executive of Conifer, announced he is stepping down. Tenet said that Mooney will be replaced on an interim basis by Kyle Burtnett, Conifer’s Chief Operating Officer.
Conifer manages the collection operations for 800 hospitals nationwide, including 77 that are owned by Tenet.
Tenet announced the strategic review back in December 2017, which included selling the company. Even though there were nine offers to purchase Conifer, including three final offers, Tenet decided instead to turn Conifer into its own standalone corporation. The spin-off is slated to be completed by the second quarter of 2021. Tenet had preferred to sell the company, but was unable to work out a deal, said Ron Rittenmeyer, Tenet’s Chief Executive.
“Conifer has unmatched experience and scale in offering revenue cycle management solutions for healthcare providers and a proven track record of delivering high-touch, high-value services to clients,” Rittenmeyer said in a statement. “Pursuing a tax-free spin-off is an important step forward in Conifer’s evolution, and we believe the business is well-positioned to capitalize on its growth opportunities as a standalone company.”
Tenet was looking to use the proceeds of a sale of Conifer to help pay down its $15 billion in debt. Conifer had provided the majority of Tenet’s revenue and was expected to fetch $2.5 billion in a sale. Conifer has announced the closure of several of its operations in the past two years, including offices in North Carolina and Michigan.
