SOUTH Tenet plans to sell more hos­pi­tals af­ter Hous­ton di­vesti­tures

Modern Healthcare - - REGIONAL NEWS - —Dave Barkholz

Tenet Health­care Corp. plans to sell more hos­pi­tals in or­der to fo­cus on its pri­mary mar­kets where it is first or sec­ond in mar­ket share, com­pany ex­ec­u­tives said last week.

Tenet, the na­tion’s third-largest in­vestor-owned hospi­tal chain, pre­vi­ously sold three hos­pi­tals in Hous­ton to HCA for $750 mil­lion on Aug. 1, and it will off­load more non­core as­sets as part of its fi­nan­cial strat­egy. Tenet did not spec­ify how many ad­di­tional hos­pi­tals are for sale or the an­nual rev­enue they pro­duce.

The com­pany posted a net loss on op­er­a­tions of $56 mil­lion in the sec­ond quar­ter on slump­ing ad­mis­sions.

CEO Trevor Fet­ter said Tenet used the $750 mil­lion in cash from its Hous­ton hospi­tal di­vesti­tures to pay down a re­volv­ing loan the com­pany had pre­vi­ously used to in­crease its ma­jor­ity own­er­ship of United Sur­gi­cal Part­ners In­ter­na­tional.

As of June 30, Tenet now owns 80% of USPI, one of the largest am­bu­la­tory surgery cen­ter op­er­a­tors in the coun­try that Tenet is ex­pand­ing to of­fer am­bu­la­tory ac­cess both in­side and beyond its hospi­tal mar­kets.

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