WellStar Health System announced it will acquire five Tenet Healthcare Corporation hospitals in a deal valued at $661 million. The deal, which is expected to close by the end of March, would expand Marietta, Ga.-based WellStar’s geographic reach into Atlanta and add two trauma centers and 26 physician clinics to the system’s operations. WellStar will borrow to finance the cost of acquisition, which includes a sale price of $575 million and the assumption of $86 million in debt. For Tenet, the proposed sale is the latest in a string of deals as the company evaluates where the company can and can’t build integrated delivery networks. For WellStar, the deal will deliver the growth the system failed to achieve when it broke off talks this summer to merge with Emory Healthcare. The not-for-profit system, which ended last year with $1.8 billion in revenue, would double the number of its hospitals to 10 with the acquisition. WellStar is seeking growth to expand the reach of its population health programs, which includes the launch of a clinically integrated network this year. The system will extend its clinical and quality improvement programs to the newly acquired hospitals and clinics. The system also plans to acquire West Georgia Health in LaGrange. The Tenet deal includes the two-campus Atlanta Medical Center; North Fulton Hospital in Roswell; Spalding Regional Hospital in Griffin; and Sylvan Grove Hospital in Jackson.
This was reported by Modern Healthcare on December 1, 2015
Contact Information: Jennifer Evans, Media Contact, Tenet Healthcare, 1445 Ross Ave, Suite 1400, Dallas, Texas 75202; 469-893-2640; E-mail: MediaRelations@tenethealth.com; Website: www.tenethealth.com/Media