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Columbia Business Monthly

The Business Narrative: $2.4 Billion Acquisition

Nov 20, 2023 03:27PM ● By Donna Walker

Novant Health to Acquire Three Hospitals from Tenet Healthcare

Novant Health and Tenet Healthcare Corporation (NYSE: THC) announced they have signed a definitive agreement regarding the acquisition by Novant Health of three Tenet hospitals and affiliated operations in South Carolina.


Under the terms of the agreement, Novant Health will purchase three hospitals, as well as associated physician practices and other related hospital operations from Tenet for approximately $2.4 billion.


The transaction includes Hilton Head Hospital in Beaufort County, Coastal Carolina Hospital in Jasper County, and East Cooper Medical Center in Charleston County.


"We're excited about making this long-term investment for healthcare across our region," said Carl S. Armato, president and CEO, Novant Health. "As a health system rooted in the Carolinas, we are committed to expanding the communities we serve across our regional delivery network known for safe, quality, patient-centered care in South Carolina."


Armato added, "Across the region – from Wilmington to Conway and 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."


The health system cares for South Carolina patients in the Conway communities through Novant Health's recently established partnership with Conway Medical Center.


Novant Health has also long served South Carolinians with imaging care in the Upstate, Midlands, Pee Dee, and Lowcountry areas through its imaging company, MedQuest Associates. 


The agreement also stipulates that Tenet's Conifer Health Solutions subsidiary will provide expanded revenue cycle management services to the three hospitals following completion of the transaction.


The transaction is expected to be completed early next year, subject to customary regulatory approvals, clearances, and closing conditions.


RBC Capital Markets served as financial adviser to Novant Health.

SC Regional Economic Snapshot

South Carolina gained 6,100 jobs (0.3 percent) in October. The unemployment rate remained at 2.9 percent, according to the Federal Reserve Bank of Richmond.


The data show South Carolina gained 6,100 jobs (0.3 percent), on net, in October. The most jobs were added in professional and business services (2,400 jobs). The most jobs were lost in construction and "other services" (500 jobs each).


Since October 2022, total payroll employment increased by 49,200 jobs (2.2 percent), on net. Employment in the state was up 5.5 percent from before the pandemic (February 2020).


The most jobs were added year-over-year in education and health services (14,300 jobs). The only sector to lose jobs over the past year was manufacturing (300 jobs).


The unemployment rate in South Carolina remained at 2.9 percent and was 0.4 percentage point below its reading from a year ago. The October unemployment rate was the same as its pre-pandemic February 2020 reading.


Residential permitting activity decreased 17.3 percent in South Carolina from August to September but was up 5.4 percent from its level a year ago.


According to the Federal Housing Finance Agency, home values in South Carolina appreciated 8.5 percent from the second quarter of 2022 to the second quarter of 2023.

Pye-Barker Fire & Safety Acquires South Carolina Security Provider Adroit Systems

Pye-Barker Fire & Safety – the largest fully integrated and full-service fire  protection, life safety and security services provider in the United States – has acquired Adroit Systems  Company, a security and fire detection company based in Greenville, S.C.


Financial terms weren’t disclosed.


Adroit Systems Company provides commercial fire alarm systems, intrusion detection, access control  and video surveillance backed by 24/7 monitoring.


Rory Russell of  Acquisition and Funding Services represented Adroit in the deal.


Founded in  1946, Pye-Barker is the largest fully integrated provider of testing, maintenance and installation of fire  detection systems, fire alarms, extinguishers, fire suppression and sprinklers, security and monitoring  services for businesses nationwide.


The company operates over 180 locations and has 5,500 team members. 


Pye-Barker is No. 954 on the 2023 Inc. 5000 Fastest-Growing Private Companies in America list and No. 9 on the SDM 100 security business ranking.

Interest Rates Remain Same For First Quarter of 2024

The Internal Revenue Service announced interest rates will remain the same for the calendar quarter beginning Jan. 1, 2024.

For individuals, the rate for overpayments and underpayments will be 8 percent per year, compounded daily.


Here is a list of the new rates:

* 8 percent for overpayments (payments made in excess of the amount owed), 7 percent for corporations.

* 5.5 percent for the portion of a corporate overpayment exceeding $10,000.

* 8 percent for underpayments (taxes owed but not fully paid).

* 10 percent for large corporate underpayments.


IRS officials say that under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.


Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points.


The rate for large corporate underpayments is the federal short-term rate plus five percentage points.


The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half of a percentage point.


The announced interest rates are computed from the federal short-term rate determined during October 2023.

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