Novant Health, a non-profit health system based in the US, has reached an all-cash deal worth around $2.4bn to acquire three hospitals and affiliated operations in South Carolina from Tenet Healthcare.
The deal includes affiliated physician practices and related hospital operations.
As per the definitive agreement reached in this regard, Novant Health will buy Hilton Head Hospital in Beaufort County, Charleston County’s East Cooper Medical Center, as well as Coastal Carolina Hospital in Jasper County.
In the year ended 30 September 2023, these three hospitals along with related operations recorded revenues of almost $552m.
The transaction will offer Tenet post-tax proceeds of nearly $1.75bn.
Tenet anticipates a pre-tax gain of around $1.6bn from the sale and will use the proceeds for debt payment.
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Pending regulatory clearances, the deal is due to close early next year.
Upon closing, Tenet’s Conifer Health Solutions unit will offer revenue cycle management services to the acquired hospitals under an expanded 15-year contract.
Tenet will retain its ambulatory facilities that are run by United Surgical Partners International (USPI).
Additionally, Novant Health and USPI plan to improve their ambulatory surgery alliance to boost the service’s access in the Carolinas.
Novant Health president and CEO Carl S Armato said: “We’re excited about making this long-term investment for healthcare across our region.
“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-centred 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 personalised 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.”