- Tenet Healthcare announced a definitive agreement to sell Chicago-area MacNeal Hospital and related operations to Loyola Medicine for an undisclosed price.
- In addition to the 368-bed hospital, located in Berwyn, Ill., Loyola will get local Tenet-owned physician practices, an independent practice association of nearly 1,000 physicians and its associated accountable care organization.
- The deal signals the beginning of Tenet’s withdrawal from the Chicago hospital market, where its market share was just 2.1% in 2015, according to The Chicago Tribune. The hospital chain is talking with potential buyers for its three other Chicago-area hospitals: Weiss Memorial Hospital in Chicago, Westlake Hospital in Melrose Park and West Suburban Medical Center in Oak Park, the paper said.
The deal is another measure to help shore up financials among a large restructuring effort and rumors of a possible sale.
Once the sale is completed, MacNeal will operate as part of the Loyola Medicine system, which provides research-based care to 83,000 patients a year, and become part of Trinity Health.
The deal is expected to close in the first quarter of 2018, pending regulatory approvals.
Tenet recently announced plans to sell eight U.S. hospitals in four markets, including Philadelphia, as well as nine UK hospitals to lower debt. Those combined divestitures are expected to yield between $900 million and $1 billion. The Dallas-based health system is also weighing a possible break up along its three main business lines: hospitals, ambulatory surgery centers and revenue-cycle software.
The proposed sales come as Tenet is seeking to stem recent financial losses caused by declining admissions. The company reported a net loss of $56 million in the second quarter, due in part to weaker-than-expected patient volumes.
Earlier this month, Tenet announced a restructuring effort that includes regional management cuts. In addition to creating a leaner organization, it could boost Tenet’s value to a potential buyer. The Wall Street Journal reported last month that Tenet is exploring a number of strategic business options, including a possible sale.