Tenet Healthcare sells two hospitals in $550 million deal
Farmers Branch-based Tenet Healthcare Corp. is selling two California hospitals to Adventist Health in a $550 million deal.
The sale, the latest in a number of transactions for Tenet, will include Sierra Vista Regional Medical Center and Twin Cities Community Hospital, as well as affiliated physician practices and other related operations.
Tenet, one of the largest investor-owned hospital companies in the country, estimates after-tax proceeds of about $450 million for the sale, which is expected to be completed this spring. The two hospitals generated revenues of roughly $337 million last year.
Conifer Health Solutions, a Tenet subsidiary, will enter into an agreement to provide revenue cycle services for nonprofit Adventist Health, which is headquartered in Roseville,
Calif.
“Adventist Health is a prominent healthcare system with a commitment to compassionate care and serving the communities of San Luis Obispo County,” said Tenet Chairman and CEO Dr. Saum Sutaria. “Furthermore, our revenue cycle services partnership will enable our organizations to apply new innovations to optimize the patient experience.”
Earlier this year, Tenet announced the sale of four hospitals in Southern California to UCI Health in a $975 million transaction as part of a plan to pay off debt. The company estimated after-tax proceeds of about $800 million for the hospitals, which had a total of $1 billion in revenues in 2023.
About four months ago, Tenet also announced it would sell three South Carolina hospitals for $2.4 billion in cash. Tenet expects to receive after-tax proceeds of around $1.75 billion as part of the sale, which was completed earlier this year.
The company reported net operating revenues of more than $20.5 billion in 2023, up about 7% from 2022, according to financial filings.
Tenet operates 58 acute care and specialty hospitals, about 160 other outpatient facilities and its subsidiary, United Surgical Partners International, operates or has ownership interests in more than 480 ambulatory surgical centers and hospitals.