Hilton Head Hospital part of $2.4 billion, three-hospital sale. ‘There’s a lot to be learned’
In a $2.4 billion deal announced on Friday, North Carolina-based Novant Health is purchasing three major South Carolina hospitals — including facilities in Hilton Head and Hardeeville — expanding its presence across the Palmetto state
Novant, which is headquartered in Winston-Salem, is a not-for-profit integrated network of 16 hospitals and hundreds of outpatient and physician clinics with more than 1,900 physicians and 36,000 employees in the Carolinas, most of them currently in North Carolina.
In the transaction, which is expected to be completed by early 2024, it will acquire 48-year-old Hilton Head Hospital, Coastal Carolina Hospital in Hardeeville and East Cooper Medical Center in Mount Pleasant as well as their affiliated operations from Tenet Hospitals.
The purchase is the next phase of a long-term vision to expand across South Carolina, Carl S. Armato, Novant Health’s president an CEO, said in a statement.
“Across the region — from Wilmington to Myrtle Beach and now Charleston, Hilton head and Hardeeville — Novant Health is uniquely positioned to provide compassionate, expert, affordable and personalized care that is easy to access and understand,” Armato said.
In August, Novant Health and Conway, S.C. Medical Center announced a collaboration to serve the fast-growing Grand Strand area and Pee Dee regions of South Carolina. Through MedQuest Associates, Novant Health already is operating imaging care locations in Upstate, Medlands, Pee Dee and Lowcountry areas of South Carolina.
The three hospitals in Hilton Head, Hardeeville and Mt. Pleasant will become part of Novant Health’s network of medical care, said Saum Sutaria, a physician who is Tenet Healthcare’s chairman and CEO. Patients will get improved access to surgical procedures at convenient outpatient settings, he said.
The agreement stipulates that Tenet’s Conifer Health Solutions subsidiary will provide expanded revenue cycle management services to the three hospitals following the completion of the sale.
Dallas-based Tenet Healthcare Corp. operates 61 acute care and specialty hospitals in addition to 110 outpatient facilities. It’s delivery network includes United Surgical Partners International, the largest ambulatory platform in the country, which operates or has ownership interests in more than 465 ambulatory surgery centers and surgical hospitals.
“We appreciate the vision of their leadership to create a foundation of collaboration that will utilize each parties’ skills for the betterment of the communities we service,” Sutaria said.
The sale is still subject to customary regulatory approvals and closing conditions.
Joel Taylor, Hilton Head Hospital’s CEO, called Hilton Head Town Manager Marc Orlando to notify him about the big sale Friday afternoon. Hilton Head Mayor Alan Perry was with Orlando at the time.
“Health care is so pivotal here,” Perry told the Island Packet and Beaufort Gazette Saturday.
There have been many discussions over the years about health care improvements that are needed, Perry said, and he is looking forward to learning what the change in ownership will bring to local healthcare. He is pleased that Novant Health is a not-for-profit.
“Hopefully, additional specialists will be coming to town,” Perry said. “But there’s a lot to be learned.”
The Hilton Head hospital opened as a 40-bed community hospital in 1975. Today, it is a 93-bed medical center and a major health care facility serving the Hilton Head Island and Bluffton areas.
The hospital’s importance to the community can’t be understated, Perry says.
Before it opened, Perry noted, residents had to drive to Savannah or Beaufort for health care. With funds raised through the 1994 sale of the then nonprofit Hilton Head Hospital, the Community Foundation of the Lowcountry was born, with a mission to provide philanthropic leadership to the growing community. The foundation, which expanded in 2001 to four Lowcountry counties, has since invested $94 million.
“From the growth of the island and the need for critical care and continuing care, the hospital has been right there making sure the services are provided,” Perry said.
