Tenet Healthcare's Conifer Subsidiary Announces Over 1,000 Layoffs
Conifer Health Solutions, a revenue cycle subsidiary of Tenet Healthcare (NYSE: THC), is set to lay off over 1,000 employees by November 2. The layoffs are described as permanent and primarily affect remote workers. This move follows CommonSpirit's decision in February to terminate its service contract with Conifer and exit its nearly 24% stake in the company. CommonSpirit had been a client of Conifer since 2012, but opted to insource revenue cycle functions instead. As part of this transition, Tenet will receive $1.9 billion over three years from CommonSpirit for ending their contract and an additional $540 million for the stake buyout. Tenet CEO Dr. Saum Sutaria previously highlighted plans to invest in automation and AI at Conifer as a cost-saving strategy. The layoffs reflect ongoing restructuring efforts after regaining full control of Conifer, which is one of the largest players in healthcare billing with over 600 clients.
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