Novant Health to acquire three hospitals from Tenet Healthcare

Rhea-AI Summary

Tenet Healthcare Corporation (NYSE: THC) and Novant Health have signed a definitive agreement for Novant Health to acquire three Tenet hospitals and affiliated operations in South Carolina for approximately $2.4 billion. The acquisition aims to expand access to high-quality care in South Carolina, including Hilton Head Hospital, Coastal Carolina Hospital, and East Cooper Medical Center.

Positive

• The acquisition will expand Novant Health's presence in South Carolina, potentially leading to increased market share and revenue. It also demonstrates Novant Health's commitment to providing high-quality care in the region.

Negative

• None.

Acquisition by Novant Health of Tenet hospitals and affiliated operations will bring expanded access to high-quality care in South Carolina

WINSTON-SALEM, N.C., Nov. 17, 2023 /PRNewswire/ -- Novant Health and Tenet Healthcare Corporation (NYSE: THC) today announced that they have signed a definitive agreement regarding the acquisition by Novant Health of three Tenet hospitals and affiliated operations in South Carolina.

Under the terms of the agreement, Novant Health will purchase three hospitals, as well as associated physician practices and other related hospital operations from Tenet for approximately $2.4 billion. The transaction includes Hilton Head Hospital in Beaufort County, Coastal Carolina Hospital in Jasper County, and East Cooper Medical Center in Charleston County.

"We're excited about making this long-term investment for healthcare across our region," said Carl S. Armato, President and CEO, Novant Health. "As a health system rooted in the Carolinas, we are committed to expanding the communities we serve across our regional delivery network known for safe, quality, patient-centered care in South Carolina. Across the region – from Wilmington to Conway and Myrtle Beach, and now Charleston, Hilton Head, and Hardeeville – Novant Health is uniquely positioned to provide compassionate, expert, affordable, and personalized care that is easy to access and understand. This investment is the next phase of a long-term vision to improve the health and wellness of communities across South Carolina."

Novant Health is an integrated health system of physician practices, hospitals, outpatient centers, and more – each component delivering a remarkable healthcare experience for patients by offering world-class technology, personal connections, and easy access to patient focused care. The health system currently cares for South Carolina patients in the Conway communities through Novant Health's recently established partnership with Conway Medical Center. Novant Health has also long served South Carolinians with high-quality imaging care in the Upstate, Midlands, Pee Dee, and Lowcountry areas through its imaging company, MedQuest Associates. 

Novant Health continues to set the highest standards for safety and quality in the communities it serves and was recently recognized with the most 'As' for patient safety in North Carolina from The Leapfrog Group. Additionally, five Novant Health ambulatory surgery centers (ASCs) have been named a "Best Ambulatory Surgery Center," by Money, formerly known as Money Magazine, in partnership with The Leapfrog Group.

"I am pleased to be in a partnership with Novant Health, whom we've admired for their innovative approach to patient-centric healthcare," said Saum Sutaria, M.D., Chairman and CEO, Tenet Healthcare. "Our three hospitals on the coast of South Carolina will become part of their network of care, bringing benefits for generations to come. Working together, 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. We appreciate the vision of their leadership to create a foundation of collaboration that will utilize each parties' skills for the betterment of the communities we serve."

The agreement also stipulates that Tenet's Conifer Health Solutions subsidiary will provide expanded revenue cycle management services to the three hospitals following completion of the transaction.

The transaction is expected to be completed early next year, subject to customary regulatory approvals, clearances, and closing conditions. RBC Capital Markets served as financial advisor to Novant Health. Once complete, Novant Health will work with team members, medical staff, and other stakeholders to continue delivering quality care close to home. 

About Novant Health

Novant Health is an integrated network of hospitals, physician clinics and outpatient facilities that delivers a seamless and convenient healthcare experience to communities in North Carolina and South Carolina. The Novant Health network consists of more than 1,900 physicians and over 36,000 team members who provide care at more than 800 locations, including 16 hospitals and hundreds of outpatient facilities and physician clinics. In 2022, Novant Health provided more than $1.5 billion in community benefit, including financial assistance and services. 

For more information, visit NovantHealth.org. Follow Novant Health on Facebook, Instagram, X and LinkedIn. 

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 61 acute care and specialty hospitals, approximately 110 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.

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SOURCE Novant Health

FAQ

What hospitals and operations are being acquired by Novant Health in South Carolina?

Novant Health is acquiring Hilton Head Hospital, Coastal Carolina Hospital, and East Cooper Medical Center, along with associated physician practices and other related hospital operations.

How much is Novant Health paying for the acquisition?

Novant Health will purchase the three hospitals and affiliated operations from Tenet for approximately $2.4 billion.

What is the goal of the acquisition?

The acquisition aims to bring expanded access to high-quality care in South Carolina, demonstrating Novant Health's commitment to the region.

What is the ticker symbol of Tenet Healthcare Corporation?

The ticker symbol of Tenet Healthcare Corporation is NYSE: THC.