Novant Health and Tenet Healthcare Corporation announced that they have signed a definitive agreement regarding the acquisition by Novant Health of three Tenet hospitals and affiliated operations in South Carolina.
Under the terms of the agreement, Novant Health will purchase three hospitals, as well as associated physician practices and other related hospital operations from Tenet for approximately $2.4 billion. The transaction includes Hilton Head Hospital in Beaufort County, Coastal Carolina Hospital in Jasper County, and East Cooper Medical Center in Charleston County.
“We’re excited about making this long-term investment for healthcare across our region,” said Carl S. Armato, President and CEO, Novant Health. “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.”
Novant Health is an integrated health system of physician practices, hospitals, outpatient centers, and more – each component delivering a remarkable healthcare experience for patients by offering world-class technology, personal connections, and easy access to patient focused care. The health system currently cares for South Carolina patients in the Conway communities through Novant Health’s recently established partnership with Conway Medical Center. Novant Health has also long served South Carolinians with high-quality imaging care in the Upstate, Midlands, Pee Dee, and Lowcountry areas through its imaging company, MedQuest Associates.
Novant Health continues to set the highest standards for safety and quality in the communities it serves and was recently recognized with the most ‘As’ for patient safety in North Carolina from The Leapfrog Group. Additionally, five Novant Health ambulatory surgery centers (ASCs) have been named a “Best Ambulatory Surgery Center,” by Money, formerly known as Money Magazine, in partnership with The Leapfrog Group.
“I am pleased to be in a partnership with Novant Health, whom we’ve admired for their innovative approach to patient-centric healthcare,” said Saum Sutaria, M.D., Chairman and CEO, Tenet Healthcare. “Our three hospitals on the coast of South Carolina will become part of their network of care, bringing benefits for generations to come. Working together, we’ll work to ensure seamless continuity of care for patients, improve revenue cycle services, and enhance access to surgical procedures in convenient and safe outpatient settings. We appreciate the vision of their leadership to create a foundation of collaboration that will utilize each parties’ skills for the betterment of the communities we serve.”
The agreement also stipulates that Tenet’s Conifer Health Solutions subsidiary will provide expanded revenue cycle management services to the three hospitals following completion of the transaction.
The transaction is expected to be completed early next year, subject to customary regulatory approvals, clearances, and closing conditions. RBC Capital Markets served as financial advisor to Novant Health. Once complete, Novant Health will work with team members, medical staff, and other stakeholders to continue delivering quality care close to home.