BY Richard Summerfield
Novant Health has agreed to acquire three hospitals and affiliated operations from Tenet Healthcare Corporation in a deal worth around $2.4bn.
The deal, which is expected to close in early 2024, includes Hilton Head Hospital in Beaufort County, Coastal Carolina Hospital in Jasper County and East Cooper Medical Center in Charleston County, all of which are in South Carolina.
Under the terms of the deal, Tenet’s Conifer Health Solutions subsidiary will also provide expanded revenue cycle management services to the three hospitals following completion of the transaction.
At present, Novant operates 16 hospitals in North Carolina and South Carolina, along with 800 other healthcare locations. The nonprofit system boasts a workforce of 36,000 employees and has $7.6bn in annual revenue. Tenet Healthcare, a for-profit health system based in Dallas, Texas, owns 61 acute care and specialty hospitals and more than 480 ambulatory surgical centres and surgical hospitals.
“We’re excited about making this long-term investment for healthcare across our region,” said Carl S. Armato, president and chief executive of 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.”
“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, chairman and chief executive of 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 healthcare sector has seen a number of notable deals this year. The first three quarters of 2023 saw 53 announced hospital mergers, according to data from Kaufman Hall, equalling the number of hospital mergers reported in all of 2022.
News: Tenet Healthcare to sell 3 South Carolina hospitals for about $2.4 bln