Conifer to Remain Part of Tenet with Strong Path Forward
Tenet Healthcare Corporation (NYSE: THC) announced its decision to retain its subsidiary, Conifer Health Solutions, after evaluating shareholder value creation opportunities. This choice was influenced by significant improvements in financial metrics, including a 1,000 basis point increase in Conifer's Adjusted EBITDA margin since 2017. Expectations project mid- to high-single digit revenue growth for Conifer in FY 2022, bolstered by new client acquisitions and a strong cash flow profile. Tenet reaffirmed its financial outlook for FY 2022 in this context.
- Conifer's Adjusted EBITDA margin improved by over 1,000 basis points since 2017.
- Conifer expected to achieve mid- to high-single-digit revenue growth in FY 2022.
- Strong margin and cash flow profile anticipated for Conifer.
- None.
Conference call scheduled for today,
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
“Conifer is primed with a robust pipeline and recent client wins with value that is not yet fully realized,” said
Also today, the Company reaffirmed its financial Outlook for FY 2022 (consolidated and by segment) as disclosed in its fourth quarter 2021 earnings press release dated
Management’s Webcast Discussion
Management will host a conference call today,
Cautionary Statement
This release contains “forward-looking statements” - that is, statements that relate to future, not past, events. In this context, forward-looking statements often address Tenet’s expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “target,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain, especially with regard to developments related to COVID-19. Particular uncertainties that could cause Tenet’s actual results to be materially different than those expressed in Tenet’s forward-looking statements include, but are not limited to, the impact of the COVID-19 pandemic and other factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended
About
View source version on businesswire.com: https://www.businesswire.com/news/home/20220301005516/en/
Investor Contact
469-893-2387
investorrelations@tenethealth.com
Media Contact
469-893-2640
mediarelations@tenethealth.com
Source:
FAQ
What recent decision did Tenet Healthcare (THC) make regarding Conifer Health Solutions?
How has Conifer Health Solutions' financial performance improved according to Tenet Healthcare (THC)?
What revenue growth is expected for Conifer Health Solutions in FY 2022?