Conifer an incredibly valuable asset, says Tenet CEO
TEXAS, UNITED STATES — Tenet Healthcare’s revenue cycle management subsidiary Conifer Health Solutions has been an “incredibly valuable asset” to the for-profit hospital system, according to CEO Saum Sutaria.
Speaking at the Bank of America Securities 2024 Health Care Conference, Sutaria praised Conifer’s performance, stating, “In an environment where complexity has plagued revenue cycle companies, we’ve stayed focused on the basics, collecting cash for clients across the board at a very, very, high rate. And we are now returning the organization to topline growth coming out of the pandemic.”
Conifer background
Conifer Health Solutions was founded in 2008 by Tenet Healthcare and has grown to become an industry leader in revenue cycle management (RCM) and value-based care services. It serves over 800 clients across the United States and processes $30 billion in net revenue annually.
The firm’s comprehensive suite of services includes patient access, financial clearance, coding, patient financial services, and population health management solutions.
One of Conifer’s key offerings is its denials management solution, which helps providers recoup revenue lost through inappropriate clinical, technical, and administrative denials. The company’s RCM services have been instrumental in driving operational excellence and optimizing cash flow performance for clients like Dartmouth Health.
Spin-off plans scrapped in 2022
In 2019, Dallas-based Tenet announced plans to spin off Conifer into an independent, publicly traded company. However, those plans were abandoned in 2022 after a review by Tenet’s board of directors and independent advisors.
Several factors influenced the decision to keep Conifer under Tenet’s umbrella, including significant financial improvements at both Tenet and Conifer and promising growth prospects within Conifer’s pipeline.
Organizational restructuring
Earlier this year, Tenet combined Conifer and its hospital operations into a single operating segment.
William McDowell, Tenet’s Vice President of Investor Relations, explained during the company’s February 8 earnings call that the change reflected “recent updates to the organizational and management structure of Conifer and hospital operations.”
Client partnerships
Conifer established long-standing partnerships with prominent healthcare systems across the United States.
In February 2024, the company announced the renewal of an exclusive service agreement with Dartmouth Health, a world-class academic healthcare system in New Hampshire. Under the multi-year agreement, Conifer will continue to serve as the exclusive provider of end-to-end RCM services for Dartmouth’s physician services and related entities.
Another notable partnership is Conifer’s recent agreement with Adventist Health, a prominent healthcare system in California. As part of a strategic partnership, Conifer will provide hospital and physician revenue cycle services for Adventist Health, covering over $3.5 billion in net revenue.
Future outlook for Conifer
Looking ahead, Sutaria expressed excitement about Conifer’s potential contributions to Tenet in the coming years.
“We’re very excited about what Conifer will contribute to the company over the next few years.”
Tenet’s decision to retain Conifer underscores the value the revenue cycle management subsidiary brings to the healthcare system, particularly in navigating the complexities of the revenue cycle landscape.
