Tenet sells 9 hospitals for $3.9B

Tenet sells 9 hospitals for $3.9B unknown

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.

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.

CHS sold 11 hospitals in 2023, compared to one hospital sale in 2022, as it extended its divestiture plan to help control its losses and reduce debt. 

"We're focused on long-term sustainability and reducing our debt leverage and getting our balance sheet on more solid footing," CFO Kevim Hammons told Becker's. "We've made significant progress in recent years, taking our debt down to about $1.5 billion and extending our maturity to give ourselves more flexibility."

Mr. Hammons said CHS "is making a lot of progress" improving its margins and reducing leverage and expects the company to be "back acquiring hospitals" in the near future if there are opportunities that make sense.