CHARLESTON, S.C. (WCSC) – An agreement announced on Friday would send three Tenet Healthcare-owned hospitals to Novant Health for approximately $2.4 billion.
Under the deal, Novant would gain ownership of East Cooper Medical Center in Mount Pleasant, Coastal Carolina Hospital in Jasper County and Hilton Head Hospital in Beaufort County and all affiliated physician practices.
Ambulatory services operated by United Surgical Partners International will stay under Tenet’s control.
“Our three hospitals on the coast in South Carolina are well regarded by the communities they serve for the high-quality specialty services they deliver,” Saum Sutaria, M.D., Chairman and CEO of Tenet Healthcare, said. “Novant is an innovative healthcare organization with a deep commitment to patient-centric care. Integration of these three hospitals into their network will bring benefits for generations to come. Our new partnership in revenue cycle management and expanded collaboration in ambulatory surgical services will support consumer-centric healthcare.”
Tenet stands to add $1.6 billion in pre-tax book gain. The sale of the hospitals will go towards paying down the healthcare provider’s debt.
“We’re excited about making this long-term investment for healthcare across our region,” Carl S. Armato, President and CEO of Novant Health, said. “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.”
The Winston-Salem, North Carolina-based healthcare provider signed a deal with Conway Medical Center in August that gave them a 30% stake in the hospital.
Tenet subsidiary Conifer Health Solutions will continue to provide billing support for the three hospitals.
The deal is expected to be completed in early 2024.
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