Dallas-based Tenet Healthcare has started 2024 with a flurry of hospital sales.
The for-profit system announced Feb. 1 it completed its $2.4 billion sale of three South Carolina hospitals to Winston-Salem, N.C.-based Novant Health. Also that day, Tenet announced it reached a definitive agreement to sell four Southern California hospitals and associated outpatient locations to Orange, Calif.-based UCI Health for $975 million. That deal is expected to close in the spring.
"It is important to note that these sales were completed at very attractive EBITDA multiples, evidencing the strength of our assets and the quality of care they provide in their communities. Collectively, these transactions will substantially improve our leverage position," Tenet CEO Saum Sutaria, MD, said on the system's Feb. 8 earnings call.
On Feb. 29, Tenet announced it signed a definitive agreement to sell two California hospitals to Roseville, Calif.-based Adventist Health in a $550 million deal.
All three transactions involved agreements for Tenet's Conifer Health Solutions subsidiary to provide revenue cycle management services. Conifer will provide RCM services for 15 years to the three South Carolina hospitals sold to Novant. Tenet did not specify the details of the agreement with UCI Health, but Dr. Sutaria said on the earnings call that the deal includes a contract for Conifer services. Conifer also will enter an agreement to provide hospital and physician revenue cycle services for Adventist. Conifer will provide services for more than $3.5 billion in net revenue for the health system.