Louisiana Children’s Medical Center (LCMC) and Conifer Health Solutions, a subsidiary of Tenet Healthcare Corp. (THC - Free Report) entered into an agreement whereby, the former will use the medical eligibility and financial counseling services provided by the later.
LCMC is a non-profit corporation operating three healthcare facilities in Louisiana.
Per the agreement, LCMC will include its recently leased 200-bed Interim LSU Public Hospital in New Orleans for the expanded use of the medical eligibility and financial counseling services. Tenet Healthcare’s Conifer Health will identify the underinsured or uninsured patients referred to by Interim LSU Public Hospital for state and medical assistance programs.
Tenet Healthcare’s Conifer Health will assist Interim LSU Public Hospital to generate additional revenues by financially supporting the latter’s eligible patients for their existing and future healthcare needs.
The liaison with LCMC is expected to boost revenue of Tenet Healthcare’s Conifer Health that surged 84% year over year in the last reported quarter. The sturdy top line helped it to deliver adjusted earnings before interest, tax, depreciation and amortization (EBITDA), which improved 50% year over year. Additionally, the partnership will also improve capital access of Conifer.
On the other hand, the revenue cycle management of LCMC has also improved, gaining from Conifer Health’s experience in medical eligibility assistance engagements. Through this extended association with Conifer Health’s services, LCMC expects further improvement in its cash flow, bad-debt situation and enhanced patient advocacy across the New Orleans community as well.
Tenet Healthcare presently carries a Zacks Rank #3 (Hold). Other better-ranked stocks in the Medicare industry include HCA Holdings Inc. (HCA - Free Report) , Acadia Healthcare (ACHC - Free Report) and VCA Antech Inc. . All these stocks carry a Zacks Rank #2 (Buy).