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Ascension, Dignity, Tenet close to finalizing joint venture: 3 things to know

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Carondelet Health Network, based in Tucson, Ariz., and its parent company, St. Louis-based Ascension Health, are close to finalizing a deal with San Francisco-based Dignity Health and a subsidiary of Dallas-based Tenet Healthcare Corp. to create a joint venture, according to the Arizona Daily Star.

While it has taken prolonged time to close the deal, the delay does not indicate problems, Carondelet attorney Kimberly J. Commins-Tzoumakas, JD, told the publication.

She attributed the prolonged time to "truly nothing more than the complications of putting together a three-party deal."

"We are very, very close and things are going very well," she added in the report.

The deal was announced last July.

Here are three things to know about the joint venture.

1. The joint venture — in which Ascension and Dignity would maintain a minority interest — would own and operate Carondelet.

2. Under the agreement, Tenet would be the majority partner and would hold management responsibility for all operations of Carondelet's assets, although Carondelet would maintain its heritage and identity.   

3. The joint venture will connect Carondelet to a regional healthcare system of hospitals owned and operated by Dignity and Tenet in the Phoenix area, as well as Tenet and Dignity's accountable care organization, Arizona Care Network.

 

More articles on hospital transactions and valuation issues:

Healthcare deals down year-over-year in May
CHRISTUS Health Louisiana, Ochsner Health System partner: 6 things to know
Silverton Health may become part of Legacy Health

 

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