UCI Medical Center acquired Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical, and Placentia-Linda Hospital from Tenet Healthcare Corporation.
April 31, 2024
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UCI Medical Center has entered into a definitive agreement to acquire Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical, and Placentia-Linda Hospital from Tenet Healthcare Corporation (NYSE:THC) for approximately $980 million on February 1, 2024. In a related transaction Tenet completed the sale of its three South Carolina hospitals and related operations to Novant. The agreement follows the approval of the University of California Board of Regents. For the year ended December 31, 2023, the four hospitals and related operations included in the sale generated revenues of approximately $1 billion, pre-tax income of approximately $29 million and Adjusted EBITDA of approximately $71 million, excluding interest expense of approximately $3 million, and depreciation and amortization expense of approximately $39 million. The Company estimates recording a pre-tax book gain of approximately $500 million as a result of this anticipated transaction. The transaction is expected to be completed in the spring of 2024, subject to customary regulatory approvals, clearances, and closing conditions. Tenet estimates that as a result of the pre-tax book gains from these two transactions, the Company?s income tax expense would be favorably impacted in 2024 by approximately $190 million due to a reduction in interest expense limitations. Collectively, these transactions will also support Tenet?s objective of reducing leverage. Mark Ray, Dawnmarie Matlock, Tyler Pate, Scott Harty, and Clark Calhoun of Alston & Bird LLP acted as legal advisors to Tenet Healthcare Corporation in the deal. Citi Investment Banking acted as Financial advisor to the buyer in the deal. Nioura Ghazni and Eric Newsom of Sheppard Mullin acted legal advisor to UCI.
UCI Medical Center completed the acquisition of Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical, and Placentia-Linda Hospital from Tenet Healthcare Corporation (NYSE:THC) on April 1, 2024.
Tenet Healthcare Corporation is a diversified healthcare services company. The Companyâs care delivery network includes USPI Holding Company, Inc. (USPI), which operates or has ownership interests in ambulatory surgery centers and surgical hospitals. The Company also operates acute care and specialty hospitals, as well as other outpatient facilities, including surgical hospitals, and ambulatory surgery centers (ASC), among others. The Company operates through two segments: Hospital Operations and Services, and Ambulatory Care. The Hospital Operations and Services segment, which is comprised of acute care and specialty hospitals, a network of employed physicians and ancillary outpatient facilities, as well as the revenue cycle management and value-based care services that the Company provide to hospitals, health systems, physician practices, employers, and other clients. The Ambulatory Care segment, which is comprised of USPIâs ASCs and surgical hospitals.
UCI Medical Center acquired Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical, and Placentia-Linda Hospital from Tenet Healthcare Corporation.
TENET HEALTHCARE CORPORATION 
