Conifer Health Solutions, a subsidiary of Tenet Healthcare Corp. (THC), recently entered into a 10-year contract extension with Catholic Health Initiatives (CHI). The contract extension pertains to the provision of Patient Access, Revenue Integrity and Patient Financial Services to 76 CHI hospitals. However, post the announcement, shares of Tenet Healthcare dipped 1.8% to $46.14 owing to broader market dynamics.
The partnership between CHI and Tenet Healthcare’s Conifer allows the latter to offer its revenue cycle operations and technologies to the former. Conifer and CHI’s partnership dates back to May 2012, under which Conifer started providing revenue cycle service to 56 hospitals of CHI. With the aforementioned extension, Conifer will be able to serve 20 more hospitals, thereby enhancing its revenue base.
Revenue management helps clients understand consumer behavior better and optimize the availability of products and prices so as to ensure a steady revenue stream and efficiently maximize the revenue growth of the company. The existing revenue management solutions of Conifer thus allow healthcare service providers such as hospitals, health systems, physicians and government health plans to utilize competent revenue management to better connect with patients.
Through its strong revenue cycle management operations Tenet Healthcare’s Conifer has been catering to more than 800 clients nationwide to boost their financial performance and assist them in transitioning from volume to value-based care.
All these efforts are aimed to help these clients enhance their consumer and healthcare experience while at the same time controlling costs. The alliance with CHI is an enhancement to Conifer’s existing service. We expect that the contract extension with CHI will help Conifer enhance its reputation for creating solutions and quality of healthcare which in turn should help fetch more clients.
Tenet Healthcare currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the healthcare services space that look attractive at current levels include HCA Holdings, Inc. (HCA), MEDNAX, Inc. (MD) and Universal Health Services Inc. (UHS). All three stocks have a Zacks Rank #2 (Buy).
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