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CommonSpirit is paying Tenet Healthcare $1.9 billion to sell its stake in Conifer Health Solutions back to Tenet.
Tenet on Tuesday announced the deal to fully resume ownership of subsidiary Conifer Health Solutions, a provider of technology-enabled revenue cycle management services, retroactively as of this past Jan. 1.
Payments totaling approximately $1.9 billion from CommonSpirit to Tenet will be made in installments over the next three years.
Conifer will pay approximately $540 million to address the elimination of CommonSpirit's capital account and the redemption of CommonSpirit’s 23.8% equity stake in Conifer.
Conifer will continue to support CommonSpirit through the end of 2026, which will conclude Conifer's services, Tenet said.
Tenet currently estimates that its adjusted EBITDA for the year ended Dec. 31, 2025 will be at the upper end of its current guidance range of $4.47 billion to $4.57 billion.
The results were driven, among other things, by strong same-store revenue growth and disciplined expense management, Tenet said.
"CommonSpirit came together with Conifer and Tenet in this transaction to support our multiyear system integration strategy," said Michael Browning, SEVP and CFO, CommonSpirit. "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. We are grateful for Conifer's longstanding collaboration and wish them continued success in delivering value to other healthcare systems."
Conifer will continue onboarding new clients, Tenet said.
"Tenet respects CommonSpirit's strategic imperatives and decision to insource the revenue cycle operations currently served by Conifer. CommonSpirit worked closely with us to structure a mutually beneficial transaction that reflects our longstanding partnership and commitment to the joint venture," said Dr. Saum Sutaria, chairman and CEO, Tenet Healthcare.
Email the writer: SMorse@himss.org