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Ardent finalizes joint venture with U of Texas to acquire Texas health system

Nashville, Tenn.-based Ardent Health Services and Tyler, Texas-based UT Health Northeast finalized their joint purchase of East Texas Medical Center Regional Healthcare System, also in Tyler, March 1.

Under the deal, ETMC will combine with UT Health Northeast to form a 10-hospital system, branded as UT Health East Texas.

Ardent will be responsible for daily operations at UT Health East Texas, while the University of Texas system will work to expand medical education, research and community health initiatives throughout the region.

Ardent and UT Health Northeast announced their intent to partner and acquire ETMC in September 2017. The organizations will also commit more than $125 million to the new system during the next five years for capital and operational improvements.

UT Health East Texas CEO Moody Chisholm said a "small percentage" of the 7,000 to 8,000 jobs at the health system will be eliminated as part of the deal, according to the Tyler Morning Telegraph.

"The top health systems across the nation have had massive cuts in staffing. We don't anticipate that here, but there will be reductions in staff as we reorganize the way we structure the way we approach healthcare here," Mr. Chisholm said, adding, "We will work very carefully to make sure that we respect each individual … and that we try and find opportunities for them within the system."

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