Dallas-based Tenet Healthcare is regaining full control of its revenue cycle management subsidiary Conifer Health Solutions as Chicago-based CommonSpirit exits the partnership.
Under the agreement, CommonSpirit will pay about $1.9 billion to Tenet over the next three years, while Conifer will pay CommonSpirit roughly $540 million to redeem its 23.8% equity stake, effective Jan. 1, according to a Feb. 2 Tenet news release.
Conifer will continue to provide service for CommonSpirit through the end of 2026, according to the release.
“CommonSpirit came together with Conifer and Tenet in this transaction to support our multiyear system integration strategy,” CommonSpirit executive vice president and CFO Michael Browning said in the release. “Conifer has been a strong and reliable revenue cycle partner since 2012, bringing consistency to a previously fragmented environment in the former Catholic Health Initiatives portfolio. Conifer meaningfully contributed to these hospitals achieving 100% of their cash collection goals.”
Tenet said the move will give it greater flexibility to support Conifer’s long-term potential. Conifer will expand investments in artificial intelligence, automation and global operating capabilities.
