Tenet to Sell Two Hospitals and Enter into a Revenue Cycle Services Partnership with Adventist Health
29 Februar 2024 - 12:45PM
Business Wire
Tenet announces agreement to sell San Luis
Obispo County hospitals and related operations as well as a new
health system partnership for Conifer Health Solutions
Tenet Healthcare Corporation (NYSE: THC) has entered into a
definitive agreement with Adventist Health for the sale of two
Tenet hospitals and related operations in San Luis Obispo County.
Tenet also announced its Conifer Health Solutions subsidiary will
enter into an agreement to provide revenue cycle services for
Adventist Health.
The transaction will include Sierra Vista Regional Medical
Center and Twin Cities Community Hospital, as well as affiliated
physician practices and other related operations. The agreement is
for approximately $550 million (after-tax proceeds of approximately
$450 million).
For the year ended December 31, 2023, the two hospitals and
related operations included in the sale generated revenues of
approximately $337 million, pre-tax income of approximately $25
million and Adjusted EBITDA of approximately $38 million, excluding
depreciation and amortization expense of approximately $13 million.
The company estimates recording a pre-tax book gain of
approximately $275 million as a result of this anticipated
transaction.
The transaction is expected to be completed in the spring of
2024, subject to customary regulatory approvals, clearances, and
closing conditions.
Additionally, Conifer Health Solutions will enter into a
strategic partnership with Adventist Health to provide hospital and
physician revenue cycle services. Conifer to provide services for
over $3.5 billion in net revenue and deliver its best-in-class
revenue cycle capabilities to enable Adventist Health to optimize
cashflow performance and enhance patient engagement. Conifer looks
forward to delivering its advanced technologies and AI-driven
workflows to support Adventist Health’s revenue cycle strategies
and performance.
“Adventist Health is a prominent healthcare system with a
commitment to compassionate care and serving the communities of San
Luis Obispo County,” said Saum Sutaria, M.D., Chairman and CEO,
Tenet Healthcare. “Furthermore, our revenue cycle services
partnership will enable our organizations to apply new innovations
to optimize the patient experience.”
About Tenet Healthcare
Tenet Healthcare Corporation (NYSE: THC) is a diversified
healthcare services company headquartered in Dallas. Our care
delivery network includes United Surgical Partners International,
the largest ambulatory platform in the country, which operates or
has ownership interests in more than 480 ambulatory surgery centers
and surgical hospitals. We also operate 58 acute care and specialty
hospitals, approximately 160 other outpatient facilities, a network
of leading employed physicians and a global business center in
Manila, Philippines. Our Conifer Health Solutions subsidiary
provides revenue cycle management and value-based care services to
hospitals, health systems, physician practices, employers, and
other clients. Across the Tenet enterprise, we are united by our
mission to deliver quality, compassionate care in the communities
we serve. For more information, please visit
www.tenethealth.com.
Cautionary Statement
This release contains “forward-looking statements” - that is,
statements that relate to future, not past, events. In this
context, forward-looking statements often address the Company’s
expected future business and financial performance and financial
condition, and often contain words such as “expect,” “anticipate,”
“assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,”
“plan,” “predict,” “project,” “seek,” “see,” “target,” or “will.”
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. Particular uncertainties that
could cause the Company’s actual results to be materially different
than those expressed in the Company’s forward-looking statements
include but are not limited to the factors disclosed under
“Forward-Looking Statements” and “Risk Factors” in our Form 10-K
for the year ended December 31, 2023, and other filings with the
Securities and Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228654980/en/
Investor Contact Will McDowell 469-893-2387
William.McDowell@tenethealth.com
Media Contact Robert Dyer 469-893-2640
mediarelations@tenethealth.com
Tenet Healthcare (NYSE:THC)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Tenet Healthcare (NYSE:THC)
Historical Stock Chart
Von Jun 2023 bis Jun 2024