Tenet Healthcare Corporation’s THC subsidiary Conifer Health Solutions recently unveiled a multi-year contract extension with Evanston, IL-based NorthShore University HealthSystem in order to continue offering physician revenue cycle services to Northshore.
With both the organizations working closely for more than two decades, the latest extension allows NorthShore to make use of the accounts receivable (AR) services and tech-enabled revenue cycle performance insights of Conifer till 2024. Backed by Conifer’s valuable analytics and expertise, NorthShore has been able to upgrade its systems and processes, thus, improving operational efficiencies.
Moreover, the extended contract is not confined to availing continued services of Conifer only. It also includes the incorporation of Swedish Hospital, which came under the network of NorthShore last year in January. With aid of Conifer, the physician revenue cycle of Swedish Hospital has been successfully integrated into NorthShore’s operating environment in 2020.
Time and again, Conifer has extended its services to health systems and physician practices and helped them tide over revenue cycle challenges. Backed by expertise of offering revenue cycle services for 35 years, Conifer has been a preferred choice for partnership for delivering improved patient outcomes.
Last month, this unit of Tenet Healthcare expanded its longstanding ties with LCMC Health based in New Orleans in a bid to offer physician AR management small-balance support and COVID-19 vaccine scheduling services. Notably, Conifer has been benefiting five of LCMC Health’s hospitals located in the greater New Orleans area by offering eligibility and enrollment services (EES) and patient financial counseling.
Moreover, it has to be noted that Conifer has been offering the abovementioned services to the vast network of Tenet Healthcare, which includes 65 hospitals and more than 550 healthcare facilities. As a result, around 40% of the net operating revenues of Conifer in 2020 have stemmed from its well-established relationship with Tenet Healthcare.
In a bid to intensify focus on its core operations, Tenet Healthcare has been looking for strategic alternatives for its Conifer business. Finally, the company arrived at a decision to spin-off the business into an independent publicly-traded company. The transaction is likely to conclude by the second-quarter 2021. The proceeds of the deal will be utilized to lighten the debt burden of Tenet Healthcare.
Shares of this Zacks Rank #2 (Buy) healthcare provider have surged 170.1% in a year compared with the industry’s growth of 63.7%.
Other Stocks to Consider
Some other top-ranked stocks in the medical space include Select Medical Holdings Corporation SEM, Community Health Systems, Inc. CYH and HCA Healthcare, Inc. HCA. While Select Medical sports a Zacks Rank #1 (Strong Buy), Community Health and HCA Healthcare carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Select Medical, Community Health and HCA Healthcare have a trailing four-quarter earnings surprise of 242.41%, 120.75% and 58.50%, on average, respectively.
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