In a major healthcare deal, Tenet Healthcare announced on Friday that it will sell three of its hospitals in South Carolina to Novant Health for approximately $2.4 billion. Under the agreement, Novant will 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 remain under Tenet’s control.
Tenet CEO Saum Sutaria stated, “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.” He added that Novant is an innovative healthcare organization with a deep commitment to patient-centric care and that integrating these three hospitals into their network would bring benefits for generations to come. The sale of the hospitals will help Tenet add $1.6 billion in pre-tax book gain, which will go towards paying down their debt.
Novant Health President and CEO Carl S. Armato expressed his excitement about making this long-term investment for healthcare across their region. He said that as a health system rooted in the Carolinas, they are committed to expanding the communities they serve across their regional delivery network known for safe, quality, patient-centered care in South Carolina. This investment is the next phase of a long-term vision to improve the health and wellness of communities across South Carolina.
In August, Novant signed a deal with Conway Medical Center that gave them a 30% stake in the hospital. Tenet subsidiary Conifer Health Solutions will continue to provide billing support for the three hospitals involved in this new agreement. The deal is expected to be completed in early 2024.