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Tenet Healthcare Sells Two Hospitals, Enters Strategic Revenue Cycle Partnership with Adventist

Friday, March 01, 2024

Tenet Healthcare Corporation (NYSE: THC) has recently announced a definitive agreement with Adventist Health for the sale of two of its hospitals and associated operations located in San Luis Obispo County. At the same time, Tenet's subsidiary, Conifer Health Solutions, will enter into a contract to provide revenue cycle services to Adventist Health.

The hospitals involved in the transaction include Sierra Vista Regional Medical Center and Twin Cities Community Hospital, along with their affiliated physician practices and ancillary services. The deal is valued at around $550 million, resulting in after-tax proceeds of approximately $450 million. Notably, the two hospitals generated revenues of about $337 million in the fiscal year ending December 31, 2023, with pre-tax income of roughly $25 million and Adjusted EBITDA of approximately $38 million, excluding depreciation and amortization expenses of approximately $13 million. Tenet estimates a pre-tax book gain of approximately $275 million from this transaction. The transaction is anticipated to be finalized in the spring of 2024, subject to customary regulatory approvals and closing conditions.

In addition to the hospital sale, Conifer Health Solutions will collaborate with Adventist Health to provide revenue cycle services for hospital and physician operations. This partnership aims to manage revenue cycles for over $3.5 billion in net revenue, employing advanced technologies and AI-driven workflows to enhance financial performance and patient engagement. Conifer is committed to supporting Adventist Health's revenue cycle strategies and delivering optimal results.

Source: businesswire.com

 

 

 

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