Tenet Healthcare Corp. is moving quickly with the proposed sale of roughly 20 of its 130 acute-care hospitals and hopes to close some sales this summer, according to company executives.
Speaking at Merrill Lynch & Co.'s healthcare services investor conference, Trevor Fetter, Tenet's chief financial officer, said there are "multiple potential buyers" for each of the facilities for sale. Serious purchasers are in due diligence, he said.
Santa Barbara, Calif.-based Tenet has never publicly disclosed which hospitals are on the block or what proceeds are anticipated. But Fetter said the company expects a "significant book gain" overall, although it expects losses on the sales of selected facilities.
MODERN HEALTHCARE's Daily Fax for Feb. 10 was the first to disclose the proposed divestiture, targeting mostly smaller, low-margin hospitals. The deal helps Tenet reduce costs and free up capital for redeployment in core markets. Executives hope to complete all the transactions by year-end.