Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

California AG Approves 2 Hospital Transactions

The office of Kamala Harris, California's attorney general, has given the green light to two separate nonprofit hospital transactions.

Earlier this month, California approved the sale of Emanuel Medical Center in Turlock, Calif., to Dallas-based Tenet Healthcare Corp. Tenet and the 209-bed Emanuel signed a definitive asset purchase agreement last February. Under the terms of the deal, Emanuel would remain affiliated with the Evangelical Covenant Church and become part of Tenet, specifically joining Tenet's Doctors Medical Center in Modesto, Calif. Tenet will invest $30 million into the hospital. The AG's office also required Tenet to maintain Emanuel as an acute-care hospital for at least five years, among other stipulations.

However, the Federal Trade Commission is still examining the deal. If finalized, the transaction would give Tenet a strong presence in that area of central California. Tenet also owns Doctors Hospital of Manteca (Calif.), which is only 15 miles from Modesto and 30 miles from Turlock.

California also OK'd a proposed transaction involving Saint John's Health Center in Santa Monica, Calif. This past September, Providence Health & Services, Southern California — a five-hospital division of Renton, Wash.-based Providence Health & Services — agreed to acquire the 234-bed Saint John's from its owner, SCL Health System in Denver.

Providence expects to make $100 million in capital expenditures at Saint John's, including the implementation of an electronic health records system. The AG's office also mandated Providence to keep Saint John's open as an acute-care hospital for five years and maintain certain levels of charity care, among several provisions.

More Articles on Hospital Transactions:
Allegheny's Saint Vincent, Titusville Area Hospital Engage in Affiliation Talks
Mackinac Straits Health System Ponders Affiliation With MidMichigan Health
ThedaCare, Community Health Network Agree to Affiliate

Copyright © 2023 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars