Conifer Health Solutions, a subsidiary of Tenet Healthcare Corp., announced yesterday a 10-year revenue cycle management deal for 56 Catholic Health Initiatives (CHI) hospitals that will also see CHI acquire a minority stake in Conifer.
The CHI hospitals in the pact represent more than $6 billion in annual revenue. Conifer will provide them with patient access, revenue integrity and patient financial services.
“We see this partnership as a game changer for Conifer,” said Stephen Mooney, president of Conifer in a conference call announcing the deal. “This is a processing business where scale and experience can drive significant advantages in cost efficiencies and operating capabilities. By expanding our volumes by more than 50 percent through this relationship, Conifer has clearly established itself as a leader in the healthcare revenue cycle business.”
Turning over this portion of the business to Conifer, CHI officials said, will allow it to “focus even more intently on fulfilling its mission to create healthier communities.”
The companies have outlined a two-year process that will see CHI’s current revenue cycle employees transition to become employees of Conifer. The employees will remain in their current locations and the companies do not foresee any reduction in staff as part of the arrangement. Over the next 24 months, these revenue cycle workers will be trained to use Conifer’s technology and processes.
“We have chosen to partner with Conifer and Tenet Healthcare for our revenue cycle services because of their outstanding track record with leading technology, tools and training,” said Dean Swindle, executive vice president, business services and chief financial officer of CHI, in a press release.
While CHI turns its focus to the provision of care, it expects the deal with Conifer will help it stabilize its revenue cycle costs as it continues to contend with the changing post-reform healthcare landscape. The partnership should help the provider better manage changes in commercial payer reimbursement rates, expanding Medicaid eligibility and increasing investments in information technology.
Englewood, Co.-based CHI is a faith-based health system operating in 19 states and includes 76 hospitals. Its $10.5 billion in annual revenue makes it the second-largest Catholic health system in the country.
Conifer Health Solutions has been a subsidiary of Tenet since 2008 and provides business process management services to more than 330 hospitals and healthcare entities across the country.