Novant Health is set to expand in the Lowcountry region of South Carolina with a $2.4 billion agreement to acquire three hospitals from Tenet Healthcare.
Novant is set to purchase hospitals near Charleston and Hilton Head Island, South Carolina, expanding its presence in the state, according to a company statement. The all-cash deal requires regulatory approval and is expected to close by the end of March 2024.
The hospitals are East Cooper Medical Center in Mount Pleasant; Hilton Head Hospital in Hilton Head Island; and Coastal Carolina Hospital in Hardeeville.
Novant, based in Winston-Salem, North Carolina, operates dozens of hospitals, outpatient surgical centers and other healthcare facilities in the Carolinas, including Novant Health Presbyterian Medical Center in Charlotte.
In March, Novant agreed to buy hospitals in Mooresville and Statesville, North Carolina, for $320 million in cash.
Tenet, based in Dallas, will continue to have a presence in the Lowcountry South Carolina market after the deal closes. United Surgical Partners International, a Tenet subsidiary, will continue to operate ambulatory facilities in the region, the company said.
Another Tenet subsidiary, Conifer Health Solutions, agreed to a 15-year contract to provide billing services for the South Carolina hospitals that Novant is slated to acquire.
The three South Carolina hospitals in the deal generated about $552 million in revenue for the 12-month period that ended Sept. 30, according to Tenet.
Tenet said it will use proceeds from the Novant sale to retire debt.
For the Record
RBC Capital Markets was the financial adviser to Novant. Sidley Austin was Novant’s legal counsel.