By Tenet Healthcare has announced its agreement to sell three hospitals in South Carolina to Novant Health for approximately $2.4 billion. The deal encompasses Coastal Carolina Hospital in Jasper County, Hilton Head Hospital in Beaufort County, and East Cooper Medical Center in Charleston County, as well as affiliated physician practices and other related hospital operations.
According to Tenet, it expects to receive around $1.75 billion after tax from the sale. As part of the agreement with Novant, Tenet’s Conifer Health Solutions subsidiary will enter into a new and expanded 15-year contract to provide revenue cycle management services for the South Carolina hospitals and their operations.
Although the ambulatory facilities operated by United Surgical Partners International in the South Carolina markets will remain with Tenet, both USPI and Novant plan to expand their ambulatory surgery partnership with the aim of increasing access to ambulatory surgical services across the Carolinas.
The three hospitals and related operations generated approximately $552 million in revenue and $126 million in pretax income for the year through September 30. Tenet anticipates a pretax book gain of roughly $1.6 billion as a result of the transaction and intends to primarily use the proceeds to retire debt.
The completion of the deal is expected to take place in the first quarter of 2024.
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