Under the proposed agreement, Ardent Health will assume majority ownership and manage daily operations at the combined entity once the deal is finalized. The deal includes ETMC’s nine hospitals and 39 clinics, and several facilities belonging to the UT system, including Tyler-based UT Health Northeast and 12 physician clinics.
As per the proposed agreement, the three organizations will create a board of directors to govern the combined entity. The organizations will also invest $150 million for improvements during the next five years. Proceeds from the transaction will be used to create a local foundation to further improve the health and wellness of residents in east Texas.
The transaction is subject to regulatory approval.
ETMC officials began their search for a strategic partner in February 2017.
More articles on transactions and valuations:
Quorum finalizes deal to sell Illinois hospital, marking second divestiture this week
Hospital M&A activity update: Robust deal flow continues in 2017
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