On July 31, 2017, Tenet Healthcare Corporation (the “Company”) completed its previously announced sale of the Company’s Houston-area acute care hospitals and related operations to HCA Healthcare, Inc. (the “Transaction”) for net pre-tax proceeds of approximately $750 million in cash. The effective date of the Transaction is August 1, 2017. Substantially all of the assets related to the ownership and operation of Cypress Fairbanks Medical Center, Park Plaza Hospital and Plaza Specialty Hospital were sold as part of the Transaction, along with the Company’s equity interest in Houston Northwest Medical Center, as well as certain other hospital-affiliated entities, including physician practices. The cash consideration is subject to certain purchase price adjustments relating to, among other things, final net working capital adjustments and actual collections of accounts receivable over the subsequent 18 month period compared to the agreed upon amount of future cash collections used at closing.

Unaudited pro forma financial information relating to the Transaction is furnished in Item 2.01 of this Current Report on Form 8-K.

On August 1, 2017, the Company issued a press release announcing the completion of the Transaction.The press release is furnished as Exhibit 99.1 hereto.

(b)Pro Forma Financial Information

The Company’s Unaudited Pro Forma Condensed Balance Sheet as of March 31, 2017 and Unaudited Pro Forma Condensed Statement of Operations for the year ended December 31, 2016 and the three months ended March31,2017 (collectively, the “Unaudited Pro Forma Financial Statements”) are furnished as Exhibit 99.2 hereto and are based on the Company’s historical consolidated results of operations and financial position, adjusted to give effect to the Transaction. The Unaudited Pro Forma Condensed Balance Sheet as of March31,2017 has been prepared to present the Company’s financial condition as if the Transaction had occurred on March31,2017. The Unaudited Pro Forma Condensed Statements of Operations for the year ended December 31, 2016 and the three months ended March31,2017 have been prepared to present the Company’s results of operations as if the Transaction had occurred on January 1, 2016.

The Unaudited Pro Forma Financial Statements and the accompanying notes should be read together with the Company’s audited consolidated financial statements and accompanying notes as of and for the year ended December 31, 2016, and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 and Quarterly Report of Form 10-Q for the three months ended March31,2017.

(d)Exhibits

TENET HEALTHCARE CORP Exhibit
EX-99.1 2 exhibit991houstonrelease.htm EXHIBIT 99.1 Exhibit Exhibit 99.1Tenet Completes Sale of Houston-Area Acute Care Hospitals and Related Operations to HCADALLAS – August 1,…
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About TENET HEALTHCARE CORPORATION (NYSE:THC)

Tenet Healthcare Corporation (Tenet) is a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets in the United States. The Company operates through three segments: Hospital Operations and other, Ambulatory Care and Conifer. With its networks, including acute care and specialty hospitals, which are engaged in providing outpatient facilities and related businesses, the Company provides a range of healthcare services in the communities it serve. It operates approximately 90 hospitals, 20 short-stay surgical hospitals, 475 outpatient centers, nine facilities in the United Kingdom and six health plans through its subsidiaries, partnerships and joint ventures. In addition, its Conifer Holdings, Inc. (Conifer) subsidiary provide healthcare business process services in the areas of revenue cycle management and technology-enabled performance improvement and health management solutions to health systems.