NEW YORK (Reuters) - Tenet Healthcare Corp (THC.N) said on Friday it will sell its two Philadelphia hospitals and related operations to Paladin Healthcare for around $170 million, as the hospital company works to lighten its debt load.
Tenet is under pressure from its largest shareholder -- Glenview Capital Management -- to shake things up. It said on Thursday that it plans to replace longtime Chief Executive Trevor Fetter and members of its board.
The company said it expects to receive $152.5 million in cash as well as a promissory note for $17.5 million from Paladin for Hahnemann University Hospital, St. Christopher’s Hospital for Children and other related operations. It said it will take a non-cash impairment charge of around $230 million for the assets in the third quarter this year.
Shares of Tenet, one of the largest U.S. hospital companies, have lost nearly three-quarters of their value since 2015. The industry has struggled over that period because of fewer patients, rising expenses and high debt.
Tenet’s stock market value is $1.7 billion, while its long-term debt load is a whopping $15 billion.
Reporting by Michael Erman; Editing by Phil Berlowitz