Tenet Completes Divestiture of Saint Louis Hospital to SLU
Tenet Healthcare Corporation THC recently completed the sale of Saint Louis University Hospital to Saint Louis University (“SLU”). The deal was announced on Jun 1, 2015, when Tenet had entered into a definitive agreement with Saint Louis University to divest the 365-bed Saint Louis University Hospital to the latter. The deal was pending regulatory approvals so far.
The hospital was purchased from SLU in 1998 to provide enhanced healthcare to the St. Louis region and train many highly-skilled medical professionals. However, Tenet decided to sell the hospital now in order to cope with the rapid changes in the healthcare system.
Nonetheless, post the divestiture, Tenet will retain its presence in the St. Louis region through its facilities – Des Peres Hospital, a MedPost Urgent Care center and 19 ambulatory surgery centers.
At the time of announcement of the deal, Tenet had projected a pretax non-cash impairment charge of nearly $150–$160 million in the second quarter of 2015.
To keep itself updated and well-equipped to endure the changes in the healthcare reform, Tenet has been undertaking a number of strategies of late. These include the formation of its joint venture with Welsh, Carson, Anderson & Stowe and announcement of a similar deal with Baptist Health System, both in Jun 2015.
Tenet currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the hospital industry are Acadia Healthcare Company, Inc. ACHC, MEDNAX, Inc. MD and VCA Inc. WOOF. All three stocks hold a Zacks Rank #2 (Buy).
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