Tenet Announces Agreement to Sell San Luis Obispo County Hospital and Related Businesses and New Health System Partnership with Conifer Health Solutions
Dallas, February 29, 2024–(BUSINESS WIRE)–Tenet Healthcare Corporation (NYSE: THC) has entered into a definitive agreement with Adventist Health for the sale of two Tenet hospitals and related businesses in San Luis Obispo County. Tenet also announced that her Conifer Health Solutions subsidiary will enter into an agreement to provide revenue cycle services to Adventist Health.
The transaction includes Sierra Vista Regional Medical Center and Twin Cities Community Hospital, as well as associated physician practices and other related operations. The contract value is approximately $550 million (approximately $450 million in after-tax proceeds).
For the year ended December 31, 2023, the two hospitals and related businesses included in the sale had sales of approximately $337 million, pretax income of approximately $25 million, excluding depreciation and amortization of approximately $13. After generating EBITDA of approximately $38 million. a million. The company estimates that it will record a pre-tax book gain of approximately $275 million as a result of this anticipated transaction.
The transaction is expected to close in spring 2024, subject to customary regulatory approvals, clearances and closing conditions.
Additionally, Conifer Health Solutions has entered into a strategic partnership with Adventist Health to provide hospital and physician revenue cycle services. Conifer delivers over $3.5 billion in net revenue and provides best-in-class revenue cycle capabilities to enable Adventist Health to optimize cash flow performance and enhance patient engagement. Conifer looks forward to providing advanced technology and AI-driven workflows to support Adventist Health's revenue cycle strategy and performance.
said Dr. Saum Sutaria, Chairman and CEO of Tenet Healthcare. “Additionally, 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 nation's largest outpatient platform, which operates or owns more than 480 ambulatory surgery centers and surgical hospitals. The company also operates 58 acute and specialty hospitals, approximately 160 other outpatient facilities, a network of premier practicing physicians, and a global business center in Manila, Philippines. Our subsidiary, Conifer Health Solutions, provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers, and other customers. Across the Tenet company, we are united in our mission to provide quality, compassionate care to the communities we serve. For more information, please visit www.tenethealth.com.
Notes
This release contains “forward-looking statements”, which are statements that concern future events rather than past events. In this regard, forward-looking statements often refer to the Company's anticipated future operations, financial performance, and financial condition, and are often referred to as “expects'', “anticipates'', “expects ”, “assume”, “believe”, “budget”, and “estimate”. , “anticipate,” “intend,” “plan,” “anticipate,” “project,” “seek,” “see,” “aim,” or “intend.” Forward-looking statements, by their nature, address matters that are subject to varying degrees of uncertainty. Certain uncertainties that could cause our actual results to differ materially from those expressed in our forward-looking statements include “Forward-Looking Statements” and “Risks” in our Form 10-K. including, but not limited to, the factors disclosed under “Factors''. For the year ended December 31, 2023 and other filings with the Securities and Exchange Commission.
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