US-based company Tenet Healthcare has completed the sale of three of its hospitals, associated physician clinics, and operations in South Carolina to Novant Health.
The transaction is valued at approximately $2.4bn in cash, with after-tax proceeds of $1.75bn.
As part of the deal, Novant Health acquired East Cooper Medical Center in Mount Pleasant, Hilton Head Hospital, and Coastal Carolina Hospital in Hardeeville, along with multiple physician clinics and outpatient centres.
In Charleston County, the acquisition will expand Novant Health's presence with the addition of 15 physician clinics while in Beaufort County, the healthcare system now includes 12 physician clinics and the Bluffton Okatie Outpatient Center.
In addition, Novant Health will add the Tidewatch Free-Standing Emergency Department in Jasper County to its portfolio.
Tenet has also announced the signing of a definitive agreement with UCI Health for the sale of four hospitals in Orange County and Los Angeles County, California.
UCI Health is the clinical enterprise of the University of California, Irvine.
This all-cash transaction, approved by the University of California Board of Regents, is valued at approximately $975m, with after-tax proceeds of nearly $800m.
Completion of this sale is currently pending customary regulatory approvals, clearances, and certain closing conditions. It is expected to be finalised in spring 2024.
As part of the deal with UCI Health in California, Tenet will sell Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical, and Placentia-Linda Hospital.
Tenet will retain net working capital from pre-closing operations and its subsidiary, Conifer Health Solutions, will continue to provide revenue cycle management services during the transition.
The acquisition by UCI Health signifies an increase in patient access to a wide range of advanced therapies and clinical trials in the region.
Patients of UCI Health and Tenet’s Pacific Coast Network will maintain continuity of care with their existing healthcare teams.
Tenet Healthcare chairman and CEO Saum Sutaria said: “Our four hospitals have provided high-quality care for Orange County and Los Angeles County residents for over 50 years.
“Integrating these hospitals into their system will meaningfully enhance access to the benefits of university medicine.”
