Tenet Health Care‘s stock leapt after the health center business revealed in a news release today that it prepares to pursue a spinoff of its Conifer company, making the health-services system into an independent openly traded business.

Tenet’s stock climbed up 3.6% to $1821 in New york city trading on Wednesday. The shares have actually lost about half their worth over the previous year.

Tenet runs 65 healthcare facilities and about 500 other health care centers in the United States. The business had actually been working to find out what to do with Conifer, which assists healthcare facilities and physicians costs clients and insurance providers, considering that late2017 Conifer handles more than 17 million client interactions each year.

“This choice supports our longstanding goals to optimize the worth of Conifer, develop on its strong development capacity and provide the very best result for Conifer and for Tenet investors,” Tenet CEO Ronald A. Rittenmeyer stated in journalism release.

Tenet stated it anticipates to finish the spinoff by the end of the 2nd quarter of2021 Goldman Sachs is the monetary consultant on Tenet’s evaluation of Conifer and Willkie Farr & Gallagher LLP is supplying legal counsel.

The business likewise stated Conifer CEO Stephen M. Mooney is leaving his position, and will be changed on an interim basis by Chief Operating Officer Kyle Burtnett. The business is searching for an irreversible CEO.