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The Street
The Street
Rob Daniel

Tenet Healthcare stock up on planned $2.4B sale of 3 hospitals to Novant

Tenet Healthcare, the Dallas-based health-care-services provider, definitively agreed to sell three of its hospitals and related operations in South Carolina to Novant Health for some $2.4 billion cash.

Novant, based in Winston-Salem, N.C., is a not-for-profit operator of a network of hospitals, physician clinics and outpatient facilities serving North Carolina and South Carolina.

The deal will include Coastal Carolina Hospital in Jasper County, Hilton Head Hospital in Beaufort County, East Cooper Medical Center in Charleston County, and affiliated physician practices and related hospital operations, the companies said in statements.

Tenet (THC) -) said it would retain ambulatory facilities operated by its United Surgical Partners International in these markets.

Under the terms, Tenet's Conifer Health Solutions subsidiary will enter an expanded 15-year contract to provide revenue-cycle-management services for the South Carolina hospitals and related operations.

And Novant and United Surgical will build out their ambulatory surgery partnership to increase access to those services for communities across the Carolinas.

Tenet hospitals in the deal posted $552M revenue

For the year through Sept. 30, the three hospitals and related operations included in the sale generated pretax profit of about $126 million on revenue of $552 million.

Tenet expects to post a pretax gain of some $1.6 billion on the deal. It said it would use the proceeds from the sale primarily to retire debt.

Tenet expects the deal to close in first-quarter 2024, subject to conditions including regulatory clearances.

At last check Tenet Healthcare shares were trading up almost 10% near $64. In 2023 through the close of trading Thursday, Tenet shares were up 19%.

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