tenet healthcare corp (THC) Key Developments
Tenet Healthcare to Manage Hi-Desert Medical Center Operations
Jul 23 15
Tenet Healthcare Corporation has announced an agreement with the Hi-Desert Memorial Health Care District, under which Tenet will manage the operations of Hi-Desert Medical Center and its related healthcare facilities. Tenet will now manage the operations of the 59-bed primary care hospital and the 120-bed skilled nursing facility on the hospital campus, as well as associated programs that were previously operated by the hospital. The district will continue to operate two family health clinics in the area. The arrangement is structured as a long-term lease agreement, which was approved by district voters on June 23 by a margin of 90.6% to 9.4%. Under this new operating arrangement, Hi-Desert Medical Center will continue to have its own medical staff and governing board. The hospital's new governing board includes representatives from the district, physicians from the hospital's medical staff and local community and business leaders. Tenet will offer employment to all hospital employees in accordance with its customary hiring practices and policies. In addition, Tenet has committed to provide much-needed funding, including $32 million in the first three years of the lease, for new projects, technologies such as enhanced information systems and physician recruitment and service line expansion.
Wellstar In Talks To Acquire Five Metro Atlanta Hospitals
Jul 23 15
Wellstar Health System, Inc. said that it is beginning negotiations with Tenet Healthcare Corp. (NYSE:THC) to buy its metro hospitals, including Atlanta Medical Center in downtown and Roswell’s North Fulton Hospital. The latter is considered the biggest prize among the group because of its location in the affluent northern Atlanta suburbs. Wellstar and Tenet issued a statement Thursday confirming the start of “exclusive, non-binding discussions’’ about a potential sale of Tenet’s Atlanta-area hospitals and other facilities to WellStar. “This is to ensure that these hospitals and facilities are best positioned to meet the needs of their communities and continue delivering high-quality health care for many years to come,’’ said the statement. WellStar and Tenet declined further comment about the potential deal.
Tenet Healthcare Corporation, Dignity Health and Ascension to Form Partnership to Own and Operate Carondelet Health Network in Arizona
Jul 15 15
Tenet Healthcare Corporation, Dignity Health and Ascension have signed a definitive agreement to create a partnership that will own and operate Carondelet Health Network based in Tucson, Arizona. Tenet will be the majority partner in the new joint venture and will manage the operations of three hospitals, related physician practices, outpatient and ambulatory services, and other affiliated businesses in Tucson and Nogales, Arizona. Dignity Health and Ascension will own minority interests in the partnership. A Tucson–based joint venture will connect Carondelet to ACN, which will provide increased access to care for patients, strengthen and grow Carondelet’s relationships with physicians, provide employee development opportunities for current and future employees, and fund strategic growth initiatives across Southern Arizona. The facilities in the new partnership will include: St. Joseph’s Hospital (486 beds) in Tucson; St. Mary’s Hospital (400 beds) in Tucson; Holy Cross Hospital (25 beds) in Nogales; Carondelet Heart & Vascular Institute at St. Mary’s Hospital; Carondelet Neurological Institute at St. Joseph’s Hospital; Carondelet Medical Group; Carondelet Specialist Group. The joint venture will maintain Carondelet’s Roman Catholic heritage and identity through an agreement with the Diocese of Tucson. Additionally, Carondelet’s existing charity care policies will remain in place. The transaction is subject to normal regulatory reviews and is expected to close in the third quarter of 2015.
Baptist Health System and Tenet Healthcare Corporation Signs Definitive Agreement to Create Joint Venture; Parrott Names as CEO of the Joint Venture
Jun 23 15
Baptist Health System and Tenet Healthcare Corporation signed a definitive agreement to create a joint venture that will operate a healthcare network serving Birmingham and central Alabama. The new network will include all Baptist Health System hospitals, Tenet’s Brookwood Medical Center and each organization’s related businesses. Under the joint venture arrangement, Tenet will be the majority partner and will manage the network’s operations. The new company will unite Baptist Health System’s four hospitals – Citizens Baptist Medical Center, Princeton Baptist Medical Center, Shelby Baptist Medical Center and Walker Baptist Medical Center – with Brookwood Medical Center. Together, the new system will have more than 1,700 licensed beds; 77 outpatient and physician office facilities, including clinics delivering primary and specialty care; approximately 7,300 employees; and approximately 1,500 affiliated physicians.
Parrott will become CEO of the joint venture, which will be overseen by a board composed of five representatives from Baptist and five representatives from Tenet.
Tenet Healthcare Corp. Completes its Joint Venture Transaction with Welsh, Carson, Anderson and Stowe
Jun 17 15
Tenet Healthcare Corp. has completed its joint venture transaction with Welsh, Carson, Anderson and Stowe that combines the short-stay surgery and imaging center assets of Tenet and United Surgical Partners International to create a US short-stay surgery platform. Tenet contributed its interest in 49 ambulatory surgery centres and 20 imaging centers to the joint venture and refinanced approximately USD 1.5 billion of existing USPI debt, which will be allocated to the joint venture through an intercompany loan. Tenet also made an approximately USD 404 million payment to pre-existing USPI shareholders to align the respective valuations of the assets contributed to the joint venture. The company owns 50.1% of the new USPI and will consolidate USPI's financial results. Welsh Carson and the other existing shareholders in USPI own the remaining 49.9%. A pre-determined put-call structure provides a path to full ownership of USPI by Tenet over the next five years.