62
HEALTHCARE
NEWS
ADVERTISINGINDEX
Note: Ad page number(s) given in parentheses
ADVERTISER
Tenet Explores Strategic Options, Including Sale:
9 Things to Know
By Molly Gamble
S
hares of Tenet Healthcare surged 14 percent Sept. 11, shortly
aer e Wall Street Journal reported the Dallas-based hospital
operator hired banking advisors to evaluate strategic options,
including a sale of the company.
Aer two board members abruptly quit Tenet's governing body over
"irreconcilable differences" in mid-August, they made it known their
employer and Tenet's largest stakeholder — Glenview Capital Man-
agement — "may evaluate other avenues to be a constructive owner
of Tenet" on or aer Sept. 1. News of meetings involving banking
advisors appears to be the latest progression of that assurance.
Here are nine things to know about the most recent development for
the 77-hospital chain.
1. Tenet is in the early phases of work with the advisors, who were
brought on to explore a number of strategic options, including the
sale of assets, divisions or the entire company. e Wall Street Jour-
nal report, which broke the news, is based on accounts from "people
familiar with the matter." Tenet stock shot up aer hours, when
the WSJ ran the story.
2. Last week, in a presentation he made at the Baird 2017 Global
Healthcare Conference, Tenet CEO Trevor Fetter shared plans to
divest eight hospitals in four U.S. markets as well as nine facilities
in the United Kingdom. ose eight U.S. hospitals include two in
Philadelphia: Hahnemann University Hospital and St. Christopher's
Hospital for Children, the sale of which Becker's Hospital Review re-
ported separately.
3. At the Wells Fargo Health Care conference, also last week, Mr. Fetter
discussed continuing to divest facilities, but did not mention the pos-
sibility of a company sale during his appearance, according to CNBC.
4. Mr. Fetter, 57, stepped down from his positions as CEO and direc-
tor Oct. 23, aer leading Tenet since 2003. On Aug. 31, the company
initially announced Mr. Fetter would depart by March 15, 2018, or
when the company appointed a successor. Ronald A. Rittenmeyer,
Tenet executive chairman, is serving as CEO during the company's
executive search.
5. Tenet made two other corporate changes when announcing Mr.
Fetter's departure: a "refreshment" of its board and a poison pill de-
signed to protect $1.7 billion in net operating loss carry forwards.
6. Tenet began the refreshment process for its board with the appoint-
ment of Mr. Rittenmeyer, who previously served as independent lead
director. Tenet did not specify how many board members will be
affected by the refreshment process, though it "expects to further en-
hance the board's expertise in areas directly relevant to the company's
business."
7. Under the poison pill, if any person or entity acquires 4.9 percent
or more of Tenet stock, all holders of rights issued under the plan
are entitled to acquire shares of common stock with a 50 percent
discount. e plan is scheduled to expire aer Tenet's 2018 annual
meeting of stockholders.
8. e company is under pressure from its largest shareholder, Glenview
Capital Management. When two Tenet board members, both employed
by Glenview, resigned over what they described as "irreconcilable differ-
ences," they made it known that Glenview would possibly "evaluate other
avenues" to be a constructive owner of Tenet on or aer Sept. 1.
9. Tenet's debt load has tripled in five years to $15 billion. e com-
pany includes 77 hospitals and 130,000 employees. e company
ended the second quarter of this year with a net loss of $56 million,
compared to a net loss of $44 million in the same period of the year
prior. n
AAAHC. www.aaahc.org/achieve (pg. 11)
Arthrex. ad.arthrex.com/gs4k (pgs. 2-3)
ASCOA. development@ascoa.com / www.ascoa.com /
(866)982-7262 (pg. 26)
ASCs Inc. info@ascs-inc.com / www.ascs-inc.com /
(760)751-0250 (pg. 41)
Boston Scientific. endoscopysolutions@bsci.com /
www.bostonscientific.com/endoscopysolutions (pg. 63)
CONMED. conmed.com/visualization / (800)237-
0169 (pg. 25)
CRH Anesthesia. info@crhanesthesia.com / www.
crhanesthesia.com / (866)699-5333 (pgs. 42 - 45)
Cygnus Medical. www.cygnusmedical.com /
(800)990-7489 (pg. 29)
eSutures. info@esutures.com / esutures.com /
(888)416-2409 (pg. 34)
gMed. www.gmed.com / (954)541-8240 (pgs. 18
- 21)
IBSS. info@ibss.net / www.ibss.net / (803)736-5595
ext. 153 (pg. 23)
OrthAlign. info@orthalign.com / orthalign.com /
(866)582-0879 (pg. 47)
National Medical Billing Services.
nationalascbilling.com / (866)948-8001 (pg. 7)
Paradigm Spine. april.spillane@paradigmspine.
com / (561)573-7882 (pg. 9)
ShareSafe Solutions. sharesafesolutions.com /
(251)378-5885 (pgs. 36 - 39)
Smith&Nephew. www.naviorobotics.com (pg. 13)
VMG Health. info@vmghealth.com / vmghealth.
com (pg. 64)
