SOUTH Tenet plans to sell more hospitals after Houston divestitures
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.