In its first sale of 2019, Tenet Healthcare Corporation (NYSE: THC) is divesting two of its Memphis-area hospitals to Methodist Le Bonheur Healthcare, which operates six acute-care and one children’s hospital in and around Memphis.
The not-for-profit health system will pay $350 million in cash for Saint Francis Hospital-Memphis (353 beds) and Saint Francis Hospital-Bartlett (156 beds), the physician practices associated with both hospitals, and six MedPost urgent care centers. The transaction is expected to be completed in 2020.
The agreement provides that Tenet’s Conifer Health Solutions subsidiary will continue to provide revenue cycle management services to the hospitals. Tenet has been exploring a sale of Conifer since earlier this year.
In 2018, Tenet sold a total of five hospitals, three in Chicago, one in Phoenix and one in St. Louis. The only price disclosed was $59 million for the Abrazo Maryville campus in Phoenix.