Novant Health and Tenet Healthcare Corporation (NYSE: THC) announced 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."
Armato added, "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."
The health system 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 imaging care in the Upstate, Midlands, Pee Dee, and Lowcountry areas through its imaging company, MedQuest Associates.
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 adviser to Novant Health.