Dallas-based Tenet Healthcare Corp. plans to divest eight hospitals in the U.S. and nine facilities in the U.K. Exiting CEO Trevor Fetter announced the news during a recent healthcare conference.
According to Fetter’s presentation, the divestiture is projected to yield $900 million to $1 billion, “including cash and the elimination of capital lease debt.” Definitive agreements are expected to be announced by the end of 2017.
While Tenet declined to comment further about facilities it will shed, the company recently announced that two of its Philadelphia hospitals will be sold. These are included in the total of eight U.S. hospitals.
Tenet-owned Hahnemann University Hospital and St. Christopher’s Hospital for Children will be sold to El Segundo, Calif.-based Paladin Healthcare for a reported $170 million.
The 17 facilities being divested are expected to increase Tenet’s net operating loss by up to an estimated $100 million, Fetter’s presentation states.