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September 13, 2017 12:00 AM

Tenet shares jump in after-hours trading amid reports it's considering sale

Dave Barkholz
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    Kris Tripplaar/Sipa USA
    Tenet's board of directors faces major obstacles to either selling the company outright or selling off its three main business unit in big blocks.

    Shares of Tenet Healthcare Corp. rose sharply in after-hours trading Wednesday amid reports that the troubled hospital chain is exploring strategic options, including the possible sale of the company.

    The Wall Street Journal reported Wednesday afternoon that Tenet had hired bank advisers to review its strategic options.

    Tenet spokesman Dan Waldmann said the company does not comment on market speculation.

    At an analyst healthcare conference last week, outgoing CEO Trevor Fetter said the Tenet board and its investors should debate whether Tenet should be sold, broken up by business line or continue to divest a handful of hospitals.

    Tenet is selling eight more hospitals to improve operating margins and reduce a debt load of $15 billion.

    Management is under pressure from Tenet's largest investor, Glenview Capital Management, to accelerate turnaround efforts. Glenview owns 18% of Tenet.

    Tenet shares jumped $2.31 in the first 45 minutes after the close of trading Wednesday. Before the news report, Tenet's shares had lost about 5% Wednesday to close at $16.24.

    Tenet is seeking a new CEO to replace Fetter, who has announced he will leave in March or earlier if Tenet finds a successor.

    The company lost $56 million in its second quarter and is having trouble getting traction with an operating turnaround. When Tenet announced Fetter's upcoming departure, the health system said it was revamping its board and continuing with a hospital divestiture program.

    As a precursor to Wednesday's news, Fetter said at a Baird healthcare conference that Tenet's investors should debate whether Tenet should be broken up through the sale of some or all of its three main businesses: hospitals, ambulatory surgery centers and revenue-cycle software.

    Tenet is the nation's third-largest investor-owned hospital company with 77 hospitals.

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    • News
      • Current News
      • Providers
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      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Blogs
      • AI
      • Deals
      • Layoff Tracker
      • HIMSS 2023
    • Opinion
      • Breaking Bias
      • Commentaries
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - AI and Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
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      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
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