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Tenet considering sale of healthcare management solutions business

Tenet Healthcare Corp. is considering the sale of Conifer Health Solutions, its healthcare management solutions business.

The company has engaged Goldman Sachs & Co. LLC and Kirkland & Ellis LLP to assist in the matter and expects to make a final decision on the sale during the first half of 2018.

The process may not necessarily result in a sale, Tenet said.

Tenet has also decided to increase the size of its cost reduction initiatives by $100 million to achieve $250 million in annualized, run-rate savings by the end of 2018.

The U.S. company has been focusing on cost-cutting strategies which involve the elimination of 1,300 positions and divesture of certain assets.

Tenet was previously rumored to be considering a sale of the company, but the plan was called off following the resignation of Trevor Fetter as chairman, CEO and director.

Meanwhile, the company said it had no immediate plans to extend its short-term shareholder rights plan, also known as a poison pill, beyond the company's 2018 annual meeting.

In separate news, the healthcare services provider issued its outlook for 2018.

The outlook includes net income from continuing operations attributable to Tenet common shareholders of $65 million to $70 million; adjusted EBITDA of $2.48 billion to $2.58 billion; GAAP earnings per share from continuing operations of 63 cents to 68 cents; and adjusted EPS from continuing operations of $1.07 to $1.36.

Tenet also expects net operating revenues in the range of $17.8 billion to $18.2 billion.