Tenet Healthcare sells two hospitals, enters partnership with Adventist Heal

Tenet Healthcare has entered into a definitive agreement with Adventist Health for the sale of two Tenet hospitals and related operations in San Luis Obispo County. Tenet’s Conifer Health Solutions subsidiary will enter into an agreement to provide revenue cycle services for Adventist Health. The agreement is for approximately $550M, or after-tax proceeds of approximately $450M. For 2023, the two hospitals and related operations included in the sale generated revenues of approximately $337M, pre-tax income of approximately $25M and Adjusted EBITDA of approximately $38M, excluding depreciation and amortization expense of approximately $13M. The company estimates recording a pre-tax book gain of approximately $275M 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. Conifer to provide services for over $3.5B in net revenue and deliver its best-in-class revenue cycle capabilities to enable Adventist Health to optimize cashflow performance and enhance patient engagement.