The decision was made based on a review by Tenet’s board of directors and independent legal and financial advisors, Tenet said in a news release.
Factors contributing to the decision include, according to the release:
- Major financial improvements of Tenet and Conifer
- Expectations that Conifer will provide revenue growth in fiscal year 2022
- Anticipated benefits from improved commercialization efforts, new sales talent and technology, and a focus on point solutions
- Prospective growth within Conifer’s pipeline
Tenet said this was a possibility in its fourth-quarter earnings call Feb. 8.
“We have achieved significant operational and financial progress within Conifer in the last few years and dramatically improved Tenet’s profile across key financial metrics like adjusted earnings before interest, taxes, depreciation and amortization; free cash flow; and net debt leverage,” said Ron Rittenmeyer, executive chair of Tenet. “We believe that continuing to build on our progress with Conifer will provide greater returns for Tenet’s shareholders.”
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