Tenet Announces Accretive Transaction and Previews Strong 2025 Results

Core Insights - Tenet Healthcare Corporation has completed a strategic transaction with CommonSpirit Health to regain full ownership of Conifer Health Solutions, which is expected to enhance Tenet's financial position and operational flexibility [1] Group 1: Transaction Details - Conifer Health Solutions will continue to support CommonSpirit Health until the end of 2026, with financial terms consistent with the existing contract [1] - The transaction includes a $540 million redemption payment from Conifer to CommonSpirit, effective retroactively from January 1, 2026, to eliminate CommonSpirit's capital account and redeem its 23.8% equity stake in Conifer [1] - Tenet will receive approximately $1.9 billion in payments from CommonSpirit over the next three years [1] Group 2: Financial Impact - The transaction will reduce Tenet's redeemable non-controlling interest and other liabilities by approximately $885 million and increase its additional paid-in capital by about $305 million [1] - Tenet estimates its Adjusted EBITDA for the year ended December 31, 2025, will be at the upper end of its guidance range of $4.47 billion to $4.57 billion, driven by strong same-store revenue growth and disciplined expense management [1] Group 3: Future Outlook - Conifer Health Solutions plans to expand its investments in artificial intelligence, automation, and global operating capabilities, reinforcing its commitment to innovation in revenue cycle management services [1] - Tenet's management will discuss the transaction in a webcast scheduled for February 2, 2026, providing further insights into the company's performance and strategic direction [1]