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Tenet exits Philadelphia with $170M sale of 2 hospitals

Dallas-based Tenet Healthcare has completed the sale of its last two Philadelphia hospitals: Hahnemann University Hospital and St. Christopher's Hospital for Children.

In September 2017, Tenet entered a definitive agreement to sell the hospitals and their affiliated operations for $170 million, consisting of $152.5 million in cash at closing and a $17.5 million promissory note, to American Academic Health System, an affiliate of El Segundo, Calif.-based Paladin Healthcare. The parties finalized the deal Thursday.

Tenet is shedding hospitals in an attempt to lower its heavy debt load. At the J.P. Morgan Healthcare Conference in San Francisco on Monday, Ron Rittenmeyer, executive chairman and CEO of Tenet, said Tenet's divestiture plan, which is expected to yield more than $1 billion of proceeds, is on track.

Tenet also launched a $250 million enterprisewide cost-cutting plan, which involves renegotiation of contracts with suppliers and vendors, as well as the elimination of 2,000 jobs.

More articles on healthcare industry transactions:

Brown University, Prospect Medical to make rival bid for Care New England
10 of the most interesting healthcare transactions of 2017
Tenet, Baylor Scott & White restructure joint venture: 4 things to know


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