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Tenet plans sale of 2 California hospitals to Adventist Health in $550M deal
The announcement comes just weeks after Tenet announced plans to sell four other California hospitals.
Tenet Healthcare Corp. has announced another deal involving the sale of its hospitals in California.
Adventist Health is buying Twin Cities Community Hospital and Sierra Vista Regional Medical Center in a $550 million deal with Tenet Healthcare Corp. (Image: Adventist Health)
Tenet announced Thursday that the for-profit system has reached a definitive agreement to sell two hospitals to Adventist Health in a $550 million deal.
Adventist Health is buying Sierra Vista Regional Medical Center and Twin Cities Community Hospital, along with the hospitals’ affiliated clinic and imaging centers. The hospitals are based in San Luis Obispo County on California’s central coast.
Assuming regulators approve the transaction, Tenet said it hopes to complete the deal in the spring of 2024. Tenet says the after-tax proceeds would be $450 million.
Tenet also announced that its subsidiary, Conifer Health Solutions, has reached a partnership with Adventist Health to provide revenue cycle services.
Saum Sutaria, M.D., chairman and CEO of Tenet Healthcare, touted the virtues of the deal in a news release.
“Adventist Health is a prominent healthcare system with a commitment to compassionate care and serving the communities of San Luis Obispo County,” Sutaria, said in a statement. “Furthermore, our revenue cycle services partnership will enable our organizations to apply new innovations to optimize the patient experience.”
Adventist Health is a faith-based, nonprofit hospital system operating 26 acute care hospitals and more than 400 sites of care on the West Coast and Hawaii.
Kerry L. Heinrich, president and CEO of Adventist Health, said he’s looking forward to the expansion into San Luis Obispo County.
“We are excited to increase our footprint to the beautiful Central Coast of California,” Heinrich said in a statement. “We are committed to partnering with Sierra Vista Regional Medical Center and Twin Cities Community Hospital to expand services, and we will work together to serve our mission of increasing the availability of care for communities in this region.”
On Feb. 1, Tenet announced that it had agreed to sell four hospitals to the University of California in a $975 million deal. If regulators approve the deal, the hospitals will become part of UCI Health, the health enterprise of the University of California-Irvine.
Tenet also shed some of its hospitals on the East Coast. This month, Tenet announced it had completed the sale of three South Carolina hospitals in a $2.4 billion transaction with Novant Health.
Tenet currently operates 58 acute care and specialty hospitals and more than 110 outpatient facilities.
Read more: Big deals: Looking at the major hospital mergers of 2023
