Tenet Healthcare to sell three of its hospitals to Novant Health

November 17, 2023 07:29 AM PST | By Invezz

Tenet Healthcare to sell three of its hospitals to Novant Health — Image source: Invezz

Details of Tenet-Novant deal

Novant has agreed to pay about $2.4 billion in cash for the said transaction that Tenet expects will help lower its long-term debt that stood at more than $15 billion at the end of its latest reported quarter.

The Dallas-headquartered firm will hand over physician practices affiliated with its hospitals in Charleston, Beaufort, and Jasper – and related operations as well to Novant Health.

Ambulatory facilities, however, will remain with Tenet Healthcare as it expects significant growth in that segment moving forward.

“THC” is still down more than 20% versus its year-to-date high.

Watch here: https://www.youtube.com/embed/2AXEfzEG9Xw?feature=oembed

Novant deal to deliver a pre-tax gain

The deal is expected to close in the first three months of the coming year provided that it satisfies customary closing conditions, including regulatory approvals.

Tenet Healthcare expects its agreement with Novant Health to deliver about $1.60 billion of pre-tax gain. Saum Sutaria – its Chief Executive said in a press release today:

We’ll work to ensure seamless continuity of care for patients, improve revenue cycle services, and enhance access to surgical procedures in convenient and safe outpatient settings.

Late last month, the New York-listed firm reported $854 million of adjusted core earnings for its third quarter. Wall Street currently has a consensus “buy” rating on the healthcare stock.

$THC(58.14) up 2.60 thin Tenet Healthcare agreed to sell three hospitals in South Carolina to Novant Health for roughly $2.4 billion…. pic.twitter.com/sDjrJQqdE8
— Palmer (@BankTheTrade) November 17, 2023

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