Methodist Le Bonheur Healthcare is buying the metro area’s two for-profit hospitals.
Today, Dec. 13, Methodist has entered into a definitive agreement with publicly traded Dallas-based Tenet Healthcare Corp. to purchase both Saint Francis Hospital-Memphis and Saint Francis Hospital-Bartlett.
According to an SEC filing from Tenet, Saint Francis Healthcare’s metro Memphis operations and assets will be acquired for $350 million in cash.
The agreement will include Saint Francis’ associated physician practices in the Memphis area and six MedPost urgent care centers locally.
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The deal is expected to be completed in 2020, subject to regulatory approvals and customary closing conditions. J.P. Morgan was Methodist’s financial advisor on the transaction. Tenet’s Conifer Health Solutions subsidiary will provide revenue cycle management services to the two hospitals following the transaction.
“Consistent with our mission, the addition of Saint Francis hospitals will increase access to high quality health care, expand services, and enhance the delivery of care to improve the overall health of the communities we serve,” Michael Ugwueke, Methodist’s president and CEO, said in a release.
Methodist noted that this acquisition accelerates the nonprofit’s plans to establish a Methodist Cancer Institute for comprehensive treatment and care for cancer patients.
Saint Francis Memphis ranks as the No. 8 largest hospital employer in the metro with about 1,300 employees. Saint Francis Bartlett ranked No. 11 in employment with nearly 600 employees. Including all of Tenet’s local operations, Saint Francis Healthcare employed 2,430 staff as of this spring.
“We have the highest respect for Methodist Le Bonheur, and we are pleased that our facilities will become part of this regional system,” Sally Deitch, CEO of Saint Francis Healthcare, said in a release. “Like Saint Francis and Tenet, Methodist Le Bonheur promotes a culture of compassion backed by strong core values and a clear commitment to patient-centered care. We believe this combination will provide the communities we serve with an even greater impact on care delivered.”
Source: Biz Journals