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news.Tenet Healthcare, an operator of acute care hospitals and related ancillary healthcare businesses, has reported that its subsidiaries have completed the previously disclosed sales of USC University Hospital and Kenneth Norris Jr Cancer Hospital to the University of Southern California.
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The transaction will generate cash proceeds of approximately $275 million from the sale of property and equipment. Approximately $30 million from these proceeds will be deferred and placed in an escrow account for up to four years.
In addition, Tenet’s subsidiaries will retain substantially all of the hospitals’ working capital, which is expected to result in approximately $30 million of incremental cash proceeds. The proceeds will be used for general corporate purposes.