Tenet Health Spin-off (Conifer) Notes

December 3, 2020 – Update

  • Tenet announced that it has hired J. Roger Davis, who has over 30 years of experience in healthcare services, as its new CEO for Conifer Health Solutions.
  • Tenet also reiterated that the the spin-off is targeted for Q2 2021 although it will depend on market conditions.
  • Tenet has very high debt (6.9x debt to ebitda) and plans to use the spin-off to help de-lever.
    • Tenet would need to pass off a huge amount of debt for it to be a de-levering event!
  • I’m not too excited about Conifer. In 2019, prior to the pandemic (in other words, a good macro environment), Conifer saw sales decline by 11%.