September 26, 2017 Comments Off on Analysts: HCA Eyeing Tenet’s Hospital Biz Views: 303 Acute Care Facilities, Healthcare News

Analysts: HCA Eyeing Tenet’s Hospital Biz

Tenet Healthcare Corp. has decided to divest its hospital business, and analysts say HCA may be a potential buyer.

Dallas-based Tenet has been suffering from financial and legal problems for a few years. Last year, it paid out $514 million in a settlement over a whistleblower lawsuit involving kickback allegations in 2016.

In August, the company’s CEO Trevor Fetter announced his resignation, amidst grumbling from unhappy investors and a second quarter rise in the provision for doubtful accounts to $371 million.

Many analysts believe Tenet’s portfolio might be a good fit for HCA, which is one of the nation’s largest for-profit healthcare systems. Tenet currently owns 460 outpatient facilities and 77 acute-care hospitals and is the third-largest for-profit healthcare company, behind HCA and Community Health Systems. Nashville-based HCA has been actively scooping up competitor-owned facilities over the past several months, more than a handful from CHS.

Other analysts disagree about a happy marriage between HCA and Tenet. They say a potential acquisition would be complicated not only by Tenet’s debt load, but antitrust issues, which points to the portfolio being split among multiple buyers.

A proxy fight is also a possibly. Two board members who represented a New York-based hedge fund with an 18% stake, resigned abruptly. Analysts say this move could signal a coming proxy fight over Tenet.

Read More at Fierce Healthcare

For questions, comments or concerns, please contact Jennifer Duell Popovec

Subscribe to Connect Healthcare

Share on FacebookTweet about this on TwitterShare on LinkedInEmail this to someone

Tags: ,

Comments are closed.