Tenet completes sale of three South Carolina
hospitals and announces the sale of four Orange County and Los
Angeles County hospitals and related operations.
Tenet Healthcare Corporation (NYSE: THC) today announced that it
has completed the sale of three of its hospitals and related
operations in South Carolina to Novant Health for approximately
$2.4 billion. Tenet also announced it has entered into a definitive
agreement with UCI Health for the sale of four Tenet hospitals and
related operations in Orange County and Los Angeles County,
California for approximately $975 million in cash. In addition,
Tenet announced that it expects to exceed the high end of its
latest FY23 Adjusted EBITDA Outlook range included in its third
quarter 2023 earnings release.
Tenet completed the sale of its three South Carolina hospitals
and related operations to Novant for approximately $2.4 billion in
cash (after-tax proceeds of approximately $1.750 billion). The
completed South Carolina transaction includes Coastal Carolina
Hospital, Hilton Head Hospital, East Cooper Medical Center,
affiliated physician practices, and other related hospital
operations. Tenet’s Conifer Health Solutions subsidiary has entered
an expanded fifteen-year contract to provide comprehensive revenue
cycle management services for these operations.
Additionally, Tenet has entered into a definitive agreement with
UCI Health for the sale of four Tenet hospitals and related
operations in Orange County and Los Angeles County. The agreement –
which follows the approval of the University of California Board of
Regents – is for approximately $975 million (after-tax proceeds of
approximately $800 million). The transaction will include Fountain
Valley Regional Hospital, Lakewood Regional Medical Center, Los
Alamitos Medical, Placentia-Linda Hospital, and other related
operations. Tenet will retain net working capital related to
pre-closing operations and Conifer Health Solutions will continue
to provide revenue cycle management services through the
transition.
“Our four hospitals have provided high-quality care for Orange
County and Los Angeles County residents for over 50 years,” said
Saum Sutaria, M.D., Chairman and CEO, Tenet Healthcare. “UCI Health
is an innovative academic health system with a deep commitment to
enabling accessibility to world-class, academic medicine closer to
home. Integrating these hospitals into their system will
meaningfully enhance access to the benefits of university
medicine.”
For the year ended December 31, 2023, the four hospitals and
related operations included in the sale generated revenues of
approximately $1 billion, pre-tax income of approximately $29
million and Adjusted EBITDA of approximately $71 million, excluding
interest expense of approximately $3 million, and depreciation and
amortization expense of approximately $39 million. The Company
estimates recording a pre-tax book gain of approximately $500
million as a result of this anticipated transaction.
The transaction is expected to be completed in the spring of
2024, subject to customary regulatory approvals, clearances, and
closing conditions.
In addition, Tenet estimates that as a result of the pre-tax
book gains from these two transactions, the Company’s income tax
expense would be favorably impacted in 2024 by approximately $190
million due to a reduction in interest expense limitations.
Collectively, these transactions will also support Tenet’s
objective of reducing leverage.
Although Tenet’s financial statement close process is not yet
fully completed, the Company currently estimates that its Adjusted
EBITDA for the year ended December 31, 2023, will be above the high
end of its current Adjusted EBITDA guidance range after normalizing
for the recognition of $52 million aggregate pre-tax income in the
fourth quarter associated with Medicaid supplemental revenue
program adjustments in California and Texas. The results were
driven, among other things, by strong surgical growth at United
Surgical Partners International (USPI).
“Our team continues to deliver consistently strong results,
driven by Tenet’s data-driven and disciplined operating model,”
said Sutaria. “We look forward to providing more details on our
performance when we announce our complete fourth quarter and full
year results on February 8, 2024.”
The Company’s actual results for the year ended December 31,
2023 may differ from such preliminary estimates and additional
developments and adjustments may arise between now and the time the
financial information for this period is finalized. Accordingly,
you should not place undue reliance on these estimates.
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 58 acute care and specialty
hospitals, approximately 160 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.
Non-GAAP Financial Measures
The Company has not finalized all the data to be able to
reconcile certain forward-looking non-GAAP financial measures to
the most comparable U.S. GAAP financial measures without
unreasonable efforts due to uncertainty in predicting certain
items.
Reconciliations of non-GAAP measures, such as Adjusted EBITDA,
to the most comparable GAAP measures and management’s reasoning for
using them are included in the Company’s earnings press release
dated October 30, 2023, which is available on the investor
relations section of the Company’s website at
www.tenethealth.com/investors. Investors are encouraged to read
these detailed financial disclosures and reconciliations.
Cautionary Statement
This release contains “forward-looking statements” - that is,
statements that relate to future, not past, events. In this
context, forward-looking statements often address the Company’s
expected future business and financial performance and financial
condition, and often contain words such as “expect,” “anticipate,”
“assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,”
“plan,” “predict,” “project,” “seek,” “see,” “target,” or “will.”
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. Particular uncertainties that
could cause the Company’s actual results to be materially different
than those expressed in the Company’s forward-looking statements
include, but are not limited to the factors disclosed under
“Forward-Looking Statements” and “Risk Factors” in our Form 10-K
for the year ended December 31, 2022 and other filings with the
Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20240131816114/en/
Investor Contact Will McDowell 469-893-2387
William.McDowell@tenethealth.com
Media Contact Robert Dyer 469-893-2640
mediarelations@tenethealth.com
Tenet Healthcare (NYSE:THC)
過去 株価チャート
から 4 2024 まで 5 2024
Tenet Healthcare (NYSE:THC)
過去 株価チャート
から 5 2023 まで 5 2024