Tenet Healthcare Corporation (NYSE:THC) has announced its intention to sell two of its hospitals, Sierra Vista Regional Medical Center and Twin Cities Community Hospital, along with associated operations in California to Adventist Health.
The deal, valued at about $550 million in cash, will see after-tax proceeds of approximately $450 million.
This transaction, part of Tenet's strategy to streamline its operations, is expected to result in a substantial pre-tax book gain of approximately $275 million.
The hospitals involved in the sale contributed around $337 million in revenue, with a pre-tax income of about $25 million for the year ending December 31, 2023.
Furthermore, as part of the agreement, Tenet's subsidiary, Conifer Health Solutions, will engage in a partnership with Adventist Health to provide revenue cycle services.
This partnership aims to optimize cash flow performance and enhance patient engagement for Adventist Health by leveraging Conifer's advanced technologies and AI-driven workflows.