Dallas-based Tenet Healthcare, parent company of ASC giant United Surgical Partners International, is on a hospital selling spree — inking three deals so far in the last year.
In a Feb. 8 earnings call transcribed by Seeking Alpha, CEO Saum Sutaria, MD, noted that "the sales were completed at very attractive [earnings before interest, taxes, depreciation and amortization] multiples, evidencing the strength of our assets and the quality of care they provide in their communities. Collectively, these transactions will substantially improve our leverage position."
Here is where Tenet is selling hospitals:
California
Tenet inked a $550 million deal with Roseville, Calif.-based Adventist Health for the sale of two Tenet hospitals and related operations in California's San Luis Obispo County. The deal includes Sierra Vista Regional Medical Center in San Luis Obispo, Calif., and Twin Cities Community Hospital in Templeton, Calif.
Tenet sold four hospitals and two ASCs to Orange, Calif.-based UCI Health. The deal includes Tenet Health Pacific Coast's Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamos Medical Center and Placentia-Linda Hospital. The ASCs set to be acquired by UCI Health are Pacific Endoscopy & Surgery Center in Mountain Valley and Reagan Street Surgery Center in Los Alamitos.
South Carolina
Tenet finalized the sale of three hospitals in South Carolina to Winston-Salem, N.C.-based Novant Health for $2.4 billion. The deal includes Coastal Carolina Hospital in Hardeeville, Hilton Head Hospital in Hilton Head Island and East Cooper Medical Center in Mount Pleasant, along with 27 physician clinics, an outpatient center and an emergency department.