Tenet's sell-off strategy

Tenet Healthcare, parent company of ASC chain United Surgical Partners International, has sold off several assets since the beginning of the year, including seven hospitals and three ASCs. 

In February, Tenet finalized the sale of three hospitals in South Carolina — Coastal Carolina Hospital in Hardeeville, Hilton Head Hospital in Hilton Head Island and East Cooper Medical Center in Mount Pleasant — to Winston-Salem, N.C.-based Novant Health for $2.4 billion. 

Following the transaction, Tenet's Pacific Coast Network entered into a definitive agreement with Orange, Calif.-based UCI Health. 

The agreement brings Tenet Health Pacific Coast's Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamos Medical Center and Placentia-Linda Hospital and associated surgery centers and outpatient locations into the UCI Health network. 

This includes four hospitals and three ASCs, with the transaction expected to be finalized in the spring. 

Now, the company's stock is seeing momentum due to the sell-offs, according to a Feb. 4 report from Seeking Alpha. 

In 2023, Tenet posted a 1.6% decline in full-year sales to $19.2 billion. These new deals will bring billions of dollars in sales to the company, with Tenet now predicting its 2023 financial results will top the previous outlook provided.

In response to the sell-offs, Tenet's stocks have been on the rise, increasing around $6 per share, according to the report. 

As Tenet shrinks its number of facilities, it could continue to see a growth in its financial standing headed into 2024. 



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