Tenet Healthcare has agreed to sell three South Carolina hospitals and related facilities to Novant Health in a $2.4 billion cash deal, the health systems said Friday.
The deal, expected to close in the first quarter of 2024, involves Coastal Carolina Hospital in Hardeeville, Hilton Head Hospital on Hilton Head Island and East Cooper Medical Center in Mount Pleasant, plus affiliated physician practices and operations.
For-profit Tenet said it will continue to operate its United Surgical Partners International ambulatory facilities in the area and partner with nonprofit Novant to add ambulatory services across the Carolinas. Tenet has said it aims to invest at least $250 million in ambulatory care each year.
Tenet subsidiary Conifer Health Solutions will enter a 15-year contract to provide revenue cycle management services to the three hospitals and related facilities. The health system said those operations brought in approximately $552 million in revenue during the 12-month period ended Sept. 30.
Dallas-based Tenet said it will use sale proceeds—which it estimates to be $1.75 billion after taxes—to retire debt.
Tenet operates 61 acute care and specialty hospitals, more than 480 ambulatory surgery centers and about 110 other outpatient facilities. It reported $101 million in third-quarter net income, down from $131 million a year ago.
Winston-Salem, North Carolina-based Novant, which operates 16 hospitals and roughly 800 outpatient facilities and physician clinics, reported net income of $38.1 million in its second quarter, compared with a $208.8 million loss a year ago.