Tenet Healthcare plans to sell four of its hospitals in Southern California and related outpatient locations to the University of California Irvine's health system for $975 million.
Under the definitive agreement announced Thursday, Lakewood Regional Medical Center, Los Alamitos Medical Center, Fountain Valley Regional Hospital and Medical Center and Placentia Linda Hospital, along with their adjoining outpatient facilities, would join UCI Health. The facilities would use Dallas-based Tenet subsidiary Conifer Health Solutions as their revenue cycle management service.
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The cash deal requires regulatory approval. In a Securities and Exchange filing, for-profit Tenet said it would realize proceeds of about $800 million from the sale. The facilities included in the deal generated about $1 billion in revenue last year, according to Tenet's filing.
Tenet employees in good standing would be employed by UCI Health, a spokesperson for UCI Health said.
The transaction between Orange, California-based UCI Health and Tenet is expected to close in the spring.
