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Tenet sells 9 hospitals for $3.9B

Dallas-based Tenet Healthcare is reorganizing its hospital portfolio through various strategic transactions. 

In the last two months, the for-profit company has chalked up more than $3.9 billion after completing the sales of nine hospitals to three different health systems in California and South Carolina. 

Tenet sold three South Carolina hospitals to Winston-Salem, N.C.-based Novant Health for $2.4 billion, effective Feb. 1. The hospitals include East Cooper Medical Center in Mount Pleasant, Hilton Head Hospital and Coastal Carolina Hospital in Hardeeville.

The three South Carolina hospital sales "were completed at very attractive EBITDA multiples, evidencing the strength of our assets and the quality of care they provide in their communities," Tenet CEO Saum Sutaria, MD, said during the system's Feb. 8 earnings call. 

On March 28, Tenet completed the $975 million sale of four Southern California hospitals to Orange, Calif.-based UCI Health. Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical Center and Placentia-Linda Hospital are now part of UCI Health, which has added 858 inpatient beds as a result of the transaction. 

On March 29, Tenet sold two more hospitals in the state to Roseville, Calif.-based Adventist Health. The $550 million sale saw Sierra Vista Regional Medical Center in San Luis Obispo and Twin Cities Community Hospital in Templeton move to Adventist.

Overall, the nine hospitals sales will significantly improve Tenet's leverage position, according to Mr. Sutaria. 

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