Published on 20 Nov 2023 on Zacks via Yahoo Finance

Tenet (THC) to Divest 3 Hospitals to Novant to Reduce Debt

Tenet Healthcare Corporation THC recently agreed to divest three hospitals and related operations in South Carolina to Novant Health, an integrated network of medical facilities. The deal with the private entity is likely to fetch around $2.4 billion cash ($1.75 billion after tax).

The deal encompasses hospitals in Jasper, Beaufort and Charleston counties in South Carolina, along with affiliated physician practices and related hospital operations. However, THC plans to retain its ambulatory facilities, which are operated by its subsidiary, United Surgical Partners International.

The hospitals and related operations have generated around $552 million in revenues in the year ended Sep 30, 2023. During this time, the assets witnessed adjusted EBITDA of around $150 million, excluding certain items. THC expects the deal to provide a pre-tax book gain of almost $1.6 billion.