Winston-Salem, N.C.-based Novant Health and Dallas-based Tenet Healthcare have signed a definitive agreement for Novant to acquire three Tenet hospitals and affiliated operations in South Carolina.
The transaction will include Coastal Carolina Hospital in Hardeeville, Hilton Head Hospital in Hilton Head Island, East Cooper Medical Center in Mount Pleasant, affiliated physician practices and other related hospital operations, according to Nov. 17 news releases. Under the agreement, Novant will purchase the hospitals and related operations from Tenet for approximately $2.4 billion in cash (after-tax proceeds of approximately $1.75 billion).
The agreement also specifies that Tenet's Conifer Health Solutions subsidiary will enter into a new and expanded 15-year contract to provide revenue cycle management services for the three South Carolina hospitals and related operations, according to news releases. Tenet said its ambulatory facilities operated by United Surgical Partners International in these markets will remain with the for-profit hospital operator, and Novant and USPI will be enhancing their ambulatory surgery partnership.
"We're excited about making this long-term investment for healthcare across our region," Carl Armato, president and CEO of Novant, said in a news release.
"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."
Saum Sutaria, MD, chair and CEO of Tenet, said in a news release: "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. 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."
The transaction is expected to be completed in early 2024, subject to customary regulatory approvals, clearances and closing conditions.
Novant consists of more than 800 locations, including 16 hospitals and hundreds of outpatient facilities and physician clinics in North Carolina and South Carolina. Tenet operates 61 acute care and specialty hospitals, about 110 other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines.