Dive Brief:
- WellStar Health System plans to acquire five Tenet hospitals in a $661 million deal expected to close at the end of March 2016, bringing its total number of hospitals to 10. Included in the deal are 26 physician clinics.
- The sale price of $575 million and an assumption of $86 million in debt will be borrowed, according to WellStar's CEO Candice Saunders.
- WellStar's deal to merge with Emory Healthcare fell through this summer when WellStar broke off discussions. The Tenet deal provides growth WellStar needs to expand its population health programs, including the launch of a clinically integrated network, Saunders said.
Dive Insight:
WellStar also plans to acquire West Georgia Health in a separate deal where no money will be exchanged. Rather, WellStar will assume ownership of the hospital's obligations from its municipal hospital authority.
As the state's largest not-for-profit community health system, WellStar ended last year with $1.8 billion in revenue, according to Modern Healthcare. Saunders said the health system will extend clinical and quality improvement programs to the newly acquired hospitals and clinics.
Tenet plans to sell additional hospitals and announced last month it plans to sell two hospitals and 19 clinics to Duke LifePoint in North Carolina. Tenet also sold St. Louis University Hospital this summer to SSM Health. However, the health system has expanded in other markets - including entering joint ventures with Ascension Health and Dignity Health in Tuscon, Arizona.