Tenet Healthcare shares drop 15% following earnings report

Tenet Healthcare, a Dallas-based healthcare services company, is struggling to offload its business services subsidiary, Conifer Health Solutions.

Following Tenet’s second quarter earnings call this week, the company’s share price dropped 15 percent, CNBC reported. As part of its ongoing cost-cutting measures, Tenet is attempting to sell off Conifer, which has been a profitable business for the company and totaled $404 million in sales in the second quarter of 2018. Tenet owns 76 percent of Conifer.

“As to the potential sale of Conifer, we continue the effort of engaging with a few down-selected bidders and as I said last quarter, we continue to engage with these bidders on a contract framework between Tenet and a potential new owner,” Ronald Rittenmeyer, executive chairman and CEO of Tenet, said during the company’s quarterly earnings call with analysts.

UnitedHealth Group is one rumored bidder for Conifer, which could go for as much as $2 billion.

Tenet’s quarterly earnings were met with a decline in stock price, but its overall results showed some bright spots. The company reported net income from operations of $24 million, compared to a net loss of $56 million during the same three-month period in 2017. Hospital admissions decreased 2.3 percent, however.