Dive Brief:
- On Monday, Tenet Healthcare and Baylor Scott & White announced they were forming a partnership that would allow them to jointly own five hospitals in north Texas.
- Four of the hospitals were previously owned by Tenet. Under the terms of the deal, Baylor Scott & White will assume majority ownership and run the hospitals under its own branding.
- The deals is the latest in Tenet's quest to partner with not-for-profit health systems in core markets.
Dive Insight:
Tenet has been clear about its strategy to create healthcare delivery networks in each of its markets and to boost its outpatient services. This appears to be a wise move as care delivery models evolve and there is a continued shift from inpatient to outpatient settings. Tenet says it plans to exit regions where that approach doesn't seem to be working. On Tenet's February earnings call, executives said Tenet will continue to partner with not-for-profit systems that aren't necessarily seeking to sell, but are willing to discuss alternative deal structures.
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