Conifer Health Solutions, Tenet Healthcare’s revenue cycle management subsidiary, is cutting 1,037 jobs after CommonSpirit Health decided to insource its revenue cycle operations.
Here are seven things to know.
1. Conifer, the Dallas-based RCM subsidiary Tenet fully owns, notified 1,037 employees Sept. 14 that their positions are being eliminated.
2. The cuts trace back to CommonSpirit Health’s decision to end its services contract with Conifer early and exit its roughly 24% equity stake, moving revenue cycle functions in-house.
3. Layoffs take effect Nov. 2. CommonSpirit’s service contract, originally set to run through 2032, ends Oct. 30.
4. The exit comes at a price. CommonSpirit will pay Tenet nearly $1.9 billion over three years to leave the contract early, and Conifer will pay CommonSpirit $540 million for its equity stake — a deal worth about $2.7 billion in total.
5. The breakup was set in motion in February, when Tenet announced it was regaining full ownership of Conifer. Tenet CEO Saum Sutaria, MD, told investors at the time that AI and offshoring would create opportunities to lower costs in the business.
6. Conifer processes about $25 billion in net patient revenue annually for more than 600 hospital and health system clients, making it one of the largest RCM players in the country.
7. The affected roles are mostly remote positions; none are represented by a union. The cuts add to a wave of North Texas layoffs, with nearly 1,500 jobs eliminated across the region this month.
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