Dallas-based Tenet to sell interest in Broadlane

by PegNews wire

DALLAS — Tenet Healthcare Corporation today announced that it will be selling its entire interest in Broadlane, Inc. as part of a definitive agreement reached for TowerBrook Capital Partners L.P. to acquire a majority interest in Broadlane. Tenet’s proceeds from the sale will be approximately $155 million in cash.

Tenet expects to record a gain on the transaction, which will be substantially offset for tax purposes by existing net operating loss carryforwards. The transaction, subject to certain pre-closing conditions, is expected to close in the third quarter of 2008.

“Broadlane began more than eight years ago as the materials management department of Tenet and has since grown to become a successful, independent company that has helped healthcare organizations of all types save money and reduce the cost of healthcare in this country,” said Trevor Fetter, Tenet’s chief executive officer and president. “We have confidence in Broadlane and its management team, and we look forward to continuing a productive and close relationship with Broadlane under its new ownership.”

“Today’s announcement demonstrates the continued progress we are making to increase the efficiency of our balance sheet,” said Biggs Porter, Tenet’s chief financial officer. “The additional cash provided by this transaction also enhances our financial flexibility.”

Broadlane is a leading technology-oriented healthcare services company that reduces cost and creates operational efficiencies for thousands of acute care hospitals, ambulatory care facilities, physician practices and other healthcare providers in the United States. Its core services include supply chain management and clinical workforce management services.

Tenet Healthcare Corporation, through its subsidiaries, owns and operates acute care hospitals and related ancillary health care businesses, which include ambulatory surgery centers and diagnostic imaging centers.

Source: Tenet Healthcare