Tenet to transfer ownership of Philadelphia hospitals for $170M; shares ahead 3%

|About: Tenet Healthcare Corpo... (THC)|By:, SA News Editor

Tenet Healthcare (THC +2.9%) inks an agreement with Paladin Healthcare for the sale of the former's Hahnemann University Hospital, St. Christopher's Hospital for Children, local physician practices and other related operations in Philadelphia to American Academic Health System, LLC, a newly formed affiliate of Paladin.

Under the terms of the deal, Tenet will receive $170M, $152.5M in cash plus a promissory note of $17.5M.

Tenet will record a non-cash impairment charge of ~$230M in Q3 and expects to report a taxable loss of ~$200M on the sale.