Tenet Healthcare has wrapped up its deal to sell four hospitals and their related outpatient sites to UCI Health, according to a Wednesday announcement by the academic system.
The four hospitals—Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical Center and Placentia-Linda Hospital—are all located in California’s Orange and Los Angeles counties and combine for 858 inpatient beds.
The hospitals and the associated locations generated about $1 billion of revenue during 2023 and delivered pretax income of about $29 million, for-profit Tenet said in February when first disclosing the $975 million deal. The company will also continue providing revenue cycle management services through its Conifer subsidiary.
In its announcement, UCI Health said the acquisitions will help meet the “continually increasing demand for inpatient beds for a range of intensive and critical care needs” that until now was being met by its flagship, 459-bed UCI Medical Center.
"UCI Health has built a legacy as a nationally regarded academic health system that is fiercely dedicated to improving the health of our communities,” UCI Health President and CEO Chad Lefteris said in a statement. “We are investing in building a healthier future for people that harnesses the power of advanced medicine with the convenience of care available close to home."
Expanding the system's footprint, which is the clinical enterprise of the University of California, Irvine, will give the regions’ patients greater access to novel therapies and clinical trials across several specialties, including cancer, orthopedics and digestive diseases. UCI Health claimed the handover would not interrupt care for existing patients of the former Tenet facilities.
"We deeply appreciate the enthusiasm and support we have received since announcing this new chapter for healthcare in our region," Lefteris said. "Now, we can begin strengthening the collaboration with local physicians and patients to expand healthcare services and provide unrestricted access for more people."
The deal with UCI Health is one of several recent hospital sell-offs for Tenet.
Its initial announcement came the same day the for-profit announced the close of a $2.4 billion sale of three South Carolina hospitals to Novant Health. Just a few weeks later, the company cut a deal to sell two more central California hospitals (Sierra Vista Regional Medical Center and Twin Cities Community Hospital) to Adventist Health for about $550 million.
During its most recent earnings call, which preceded the Adventist deal, Tenet executives hinted at one or more hospital sales during the coming year that could bring the company more than $1 billion in funds.