- Tenet Healthcare announced Wednesday that it has signed a definitive agreement under which it will become the majority owner and operator of struggling Tucson-based Catholic Carondelet Health Network.
- Current owner Ascension will maintain a minority stake, as will nonprofit Dignity Health. Carondelet includes 25-bed Carondelet Holy Cross in Nogales, Arizona and two Tuscon facilitiues: 486-bed Carondelet St. Joseph's and 400-bed Carondelet St. Mary's.
- The network will become a for-profit, according to Tenet officials. The deal is expected to close in October, subject to regulatory approval.
Variations of this deal have been in the works since last summer, when Ascension announced plans to sell a majority interest in Carondelet to a subsidiary of for-profit Tenet Healthcare Corp. and Dignity Health through the creation of a joint venture. Tenet and Dignity are already involved in the state—together they manage an accountable care organization called the Arizona Care Network.
Carondelet has been struggling, recording losses of $32 million in fiscal 2013. In 2012, its losses were over $100 million. In August of last year, it agreed to pay a $35-million settlement to resolve allegations of Medicare fraud. The penalty was the largest of its kind in the state's history.
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