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Hospital Multiples: Tenet Divests Two More Facilities in California (~14.5x EBITDA)

In a move indicative of a larger trend in healthcare consolidation, Tenet Healthcare Corporation (NYSE: THC) announced a definitive agreement with Adventist Health for the sale of two California hospitals for $550 million. The divestiture of Sierra Vista Regional Medical Center and Twin Cities Community Hospital in San Luis Obispo County marks another step in Tenet's strategic shift away from general acute care facilities and strengthens Adventist Health's footprint in the region.

Hospital EBITDA Multiples

For the year ended December 31, 2023, the two hospitals and related operations included in the sale generated revenues of approximately $337 million and adjusted EBITDA of approximately $38 million. The transaction implies multiples of ~1.6x revenue and ~14.5x EBITDA, representing another one of the higher reported EBITDA multiples for general acute hospitals in our database. In fact, Tenet's recent divestitures represent three of the four highest reported multiples for a portfolio of general acute hospitals in our database.

Tenet Divests Two More Facilities in California
Hospital M&A EBITDA Multiples: Portfolios of Hospitals Since 2015

About Scope Research

The Scope Research Healthcare M&A Valuation Database currently has financial details for 320 general acute care hospital deals going back to 2013, 182 of which include reported EBITDA multiples. The general hospital database can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.

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