Dallas-based Tenet Healthcare, parent company of United Surgical Partners International, is turning its focus to ASCs as it rapidly sells hospitals.
"Tenet is entering a new era with a greater proportion of our performance coming from our highly efficient ambulatory surgical business and a reduced debt profile," CEO Saum Sutaria, MD, said during the company's fourth-quarter earnings call. "We will have significant financial and capital flexibility to increase shareholder value over the long-term."
The sell-offs are driving momentum in Tenet's stock, according to a Feb. 4 article published by Seeking Alpha. Tenet posted a 1.6% decline in full-year sales to $19.2 billion in 2023. However, these new deals are expected to bring in billions of dollars in sales to the company.
Here are the hospitals that Tenet has sold so far in 2024:
1. Tenet agreed to sell its majority interest in Birmingham, Ala.-based Brookwood Baptist Health to Orlando (Fla.) Health in a deal is valued at approximately $910 million in cash, with after-tax proceeds of approximately $790 million.
The transaction includes five hospitals, along with affiliated physician practices — Brookwood Baptist Medical Center in Birmingham; Princeton Baptist Medical Center in Birmingham; Walker Baptist Medical Center in Jasper, Ala.; Shelby Baptist Medical Center in Alabaster, Ala.; and Citizens Baptist Medical Center in Talladega, Ala.
2. In March, Tenet completed the sale of its Pacific Coast Network to Orange, Calif.-based UCI Health for $975 million.
As part of the agreement, Dallas-based Tenet's medical centers — Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical Center and Placentia-Linda Hospital — will now be part of UCI Health.
3. Also in March, Tenet finalized an agreement to sell two hospitals to Roseville, Calif.-based Adventist Health.
The acquisition includes the two hospitals, Sierra Vista Regional Medical Center in San Luis Obispo and Twin Cities Community Hospital in Templeton, along with their related provider practices and imaging centers.
4. In February, Tenet completed its $2.4 billion sale of three hospitals along with their affiliated physician clinics to Winston-Salem, N.C.-based Novant Health.
Novant acquired Mount Pleasant, S.C.-based East Cooper Medical Center, Hilton Head (S.C.) Hospital and Hardeeville, S.C.-based Coastal Carolina Hospital.