Tenet reported July 24 that it intends to spin off Conifer into a separate publicly traded company by the end of the second quarter of 2021.
This decision is credit negative because it will reduce Tenet’s business diversification and “modestly lower scale,” said Moody’s, “while introducing a level of uncertainty regarding its leverage profile and capital structure.”
Tenet’s current ratings remain unchanged, and Moody’s maintains its stable outlook on the hospital operator.
More articles on healthcare finance:
How 4 healthcare providers will respond to Trump’s price transparency order
68% of healthcare leaders optimistic about Trump’s price transparency order, survey finds
Arizona hospital apologizes for $60K billing error
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.