Tenet to Pay Above-Market Rates for Vanguard's Chicago Hospitals
In June, Dallas-based Tenet Healthcare Corp. said it will acquire Nashville, Tenn.-based Vanguard Health Systems for $4.3 billion, and based on documents with Illinois regulatory agencies, Tenet will be paying about $582,000 per bed across Vanguard's four Chicago-area hospitals, according to a Crain's Chicago Business report.
According to Irving Levin Associates' annual acquisition report, the median per-bed price of a Chicago hospital was $450,000. However, some in the industry believe the higher price tag comes with Tenet expanding its reach.
"I think it's kind of expected if you're going to get size and diversity that you may have to pay up a little bit more," Adam Lynch, vice president at Principle Valuation, told Crain's Chicago Business.
More Articles on Hospital Valuations:
4 Points on Benchmarking & Assessing Hospitals’ Financial Strength
New Florida Public Hospital Law Aims to Evaluate Governance, But Impacts May Not Be Universal
Cadence Health in Illinois Acquires OAD Orthopaedics for $75M
© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.