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Adventist to acquire 2 Tenet hospitals

Roseville, Calif.-based Adventist Health has signed definitive agreements to purchase two California hospitals from Dallas-based Tenet Healthcare.

Under the deal, which is expected to close in the spring, Sierra Vista Regional Medical Center in San Luis Obispo and Twin Cities Community Hospital in Templeton would join Adventist. The agreement also includes physician practices and imaging centers in San Luis Obispo County.

Tenet has agreed to sell the hospitals for approximately $550 million (after-tax proceeds of approximately $450 million).

Additionally, Tenet and Adventist announced that Tenet's Conifer Health Solutions subsidiary will enter into an agreement to provide hospital and physician revenue cycle services for Adventist. Conifer will provide services for more than $3.5 billion in net revenue, according to a Feb. 29 news release from Tenet.

"Adventist Health is a prominent healthcare system with a commitment to compassionate care and serving the communities of San Luis Obispo County," Saum Sutaria, MD, chair and CEO of Tenet, said in a news release. "Furthermore, our revenue cycle services partnership will enable our organizations to apply new innovations to optimize the patient experience."

Kerry Heinrich, president and CEO of Adventist, said in a news release: "We are excited to increase our footprint to the beautiful Central Coast of California. We are committed to partnering with Sierra Vista Regional Medical Center and Twin Cities Community Hospital to expand services, and we will work together to serve our mission of increasing the availability of care for communities in this region."

The deal with Adventist is the latest sale of California hospitals announced by Tenet. Earlier this month, Orange, Calif.-based UCI Health announced it reached a definitive agreement to acquire Tenet's Pacific Coast Network, which includes four hospitals in Southern California and their associated outpatient locations.

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