The separation process will include a thorough review of the necessary executive leadership changes, Board membership needs and key commercial milestones that Conifer must achieve in order to provide the optimal governance structures and business foundations for a successful public company. Specific details about these actions and milestones will be made available in due course.

Among other things, the spin-off will be subject to finalization of the entity structure of the spun-off business, assurance that the separation will be tax-free to Tenet’s shareholders for U.S. federal income tax purposes, executing a restructured services agreement between Conifer and Tenet, finalization of Conifer’s capital structure, the effectiveness of appropriate filings with the Securities and Exchange Commission, final approval from the Tenet Board of Directors, and other customary conditions. The spin-off will not require a vote by Tenet shareholders and is supported by Common Spirit which owns a minority interest in Conifer Health Solutions, LLC. The transaction is being targeted for completion by the end of the second quarter of 2021, but there can be no assurance regarding the timeframe for completing the spin-off, the allocation of assets and liabilities between Tenet and Conifer, or that the spin-off will be completed at all.

Goldman Sachs & Co. LLC is acting as financial advisor and Willkie Farr & Gallagher LLP is acting as legal counsel to Tenet.

Conifer CEO Transition

Kyle Burtnett, Chief Operating Officer of Conifer Health Solutions, has been appointed Interim CEO of Conifer, effective today. Stephen M. Mooney, Chief Executive Officer of Conifer, has stepped down from his position. Tenet is conducting a national search for a permanent CEO of Conifer, and will evaluate both internal and external candidates with the assistance of a leading search firm.

Mr. Rittenmeyer said, “Kyle brings more than 15 years of healthcare experience, having served in many different leadership roles at Tenet, USPI and Conifer. As Conifer’s COO, Kyle has been a driving force behind the company’s exceptional cost management and margin improvement. His operational rigor and tenacity has helped to sharpen all corners of the organization to be more efficient and effective. I look forward to working with him to advance the many important initiatives underway at Conifer.”

Rittenmeyer continued, “On behalf of all of us at Tenet, I would like to thank Steve for his significant contributions and many years of service. After helping to launch Conifer in 2008, Steve helped build it into the successful organization it is today and solidify its position as an industry leader with a compelling runway for growth. We are grateful to Steve for his dedication and lasting impact, and we wish him the best.”

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