March 1, 2022 – Tenet Healthcare Corporation (NYSE: THC) announced today that – based on ongoing shareholder value creation opportunities and improved business fundamentals – the Company will no longer pursue a spinoff of its Conifer Health Solutions subsidiary.
The decision for Conifer to remain part of Tenet was made following a thorough review by Tenet’s Board of Directors in consultation with independent legal and financial advisors and in consideration of the best interests of Tenet and its shareholders. Key factors supporting this decision include:
- Significantly improved financial profiles of Tenet and Conifer, including Adjusted EBITDA margin improvement of more than 1,000 basis points at Conifer since 2017.
- Expectations that Conifer will deliver FY 2022 revenue growth in the mid- to high-single digits with a strong margin and cash flow profile.
- Ongoing benefits anticipated from revamped commercialization efforts, new sales talent and technology, and a focus on point solutions.
- New client wins and compelling growth prospects within Conifer’s pipeline.
“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 EBITDA, Free Cash Flow and net debt leverage,” said Ron Rittenmeyer, Executive Chairman of Tenet Healthcare. “We believe that continuing to build on our progress with Conifer will provide greater returns for Tenet’s shareholders.”