Tenet Healthcare (THC) Unit Conifer Offers Services to Brookwood

Tenet Healthcare Corporation’s THC subsidiary Conifer Health Solutions recently introduced a multi-year, multi-facility service deal with Central Alabama’s well-established healthcare network Brookwood Baptist Health to extend comprehensive revenue cycle services to the remaining four hospitals out of five operated by Brookwood Baptist Health. The services include patient access, eligibility enrollment services and accounts receivable management.

The recent deal can be termed as an extension of the collaboration between Conifer and Brookwood Baptist Health. Management of the latter has credited Conifer with being a solid partner in optimizing its revenue cycle functions through technology-backed services over the years, thereby enabling the healthcare network to intensify its focus on other mission-critical precedences.

With the latest service agreement, the Tenet Healthcare unit will make use of comprehensive accounts receivable services and insights, which will advance processes. Meanwhile, the patient access and, eligibility and enrollment services of Conifer integrate automation tools with personal service to upgrade efficiencies and patient experience. Thereby, revenue cycle operations of the four hospitals of Brookwood Baptist Health, which can now avail of Conifer’s innovative services suite, are expected to improve in the days ahead.

Conifer has been selected by Brookwood Baptist Health to bring about improvements in revenue cycle operations across the four facilities, courtesy of Conifer’s well-established reputation as a revenue cycle solutions provider boasting of a solid presence throughout the United States.

Backed by the expertise of offering revenue cycle services for over three decades, Conifer has been a preferred choice of health systems, hospitals and physician groups for partnership in tiding over revenue cycle challenges.

The Conifer business was earlier supposed to undergo a spin-off with an aim to reduce the significant debt burden of Tenet Healthcare. The decision was announced in July 2019 but owing to the improved financial profiles of Conifer, THC dropped the previously made decision. Promising factors such as adjusted EBITDA margin improvement of more than 1,000 basis points at Conifer since 2017 coupled with an optimistic revenue outlook within the segment for the year 2022 have shaped Tenet Healthcare’s decision to scrap the spin-off plan. Management expects revenues within $1,325 million and $1,375 million in the segment this year, the mid-point of which indicates a 6.6% upside from the 2021 figure.

The Conifer segment performed well in the first quarter of 2022. Despite the segment accounting for a small portion of Tenet Healthcare’s revenues, revenues from the same improved 4.5% year over year during the first quarter, driven by contractual rate increases and new business expansion. Similarly, initiatives similar to the latest one can be termed as one of THC’s business expansion endeavors and might boost top-line growth in the days ahead.

Shares of Tenet Healthcare have lost 4% in a year compared with the industry’s decline of 11.1%. THC currently carries a Zacks Rank #3 (Hold).

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Stocks to Consider

Some better-ranked stocks in the Medical space are AMN Healthcare Services, Inc. AMN, Assertio Holdings, Inc. ASRT and Lantheus Holdings, Inc. LNTH, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare’s earnings surpassed estimates in each of the last four quarters, the average surprise being 15.60%. The Zacks Consensus Estimate for AMN’s 2022 earnings suggests an improvement of 26.2% from the year-ago reported figure, while the same for revenues suggests growth of 23.7%. The consensus mark for AMN Healthcare’s 2022 earnings has moved north by 8.8% in the past 30 days.

The bottom line of Assertio outpaced earnings estimates in two of the last four quarters and missed twice, the average surprise being 26.39%. The Zacks Consensus Estimate for ASRT’s 2022 earnings is pegged at 35 cents against the prior year’s loss of 3 cents. The same for revenues suggests growth of 16.6%. Assertio boasts of a Value Score of A.

Lantheus delivered a trailing four-quarter earnings surprise of 77.82%, on average. The Zacks Consensus Estimate for LNTH’s 2022 earnings indicates a surge of 520.4% year over year, while the same for revenues suggests an improvement of 93.5%. The consensus mark for Lantheus’ 2022 earnings has moved north by 48.3% in the past 30 days.

Shares of AMN Healthcare, Assertio and Lantheus have gained 4%, 55.7% and 230.3%, respectively, in a year.

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