Tenet’s sale of 365-bed SLU Hospital to St. Louis University is slated to close during the third quarter of 2015. Tenet has operated the university hospital since its 1998 acquisition.
After the completion of the sale, as part of a separate transaction, the university will sell SLU Hospital to SSM Health. As a condition of the deal, St. Louis University will hold a minority membership interest — including both a financial interest and governance privileges — in SSM Health St. Louis, according to the report.
SSM Health, a nonprofit, Catholic health system, has wanted to include an academic medical facility in its system for years. In 1998, when St. Louis University put SLU Hospital up for sale, SSM sought to buy it, but Tenet Healthcare outbid SSM Health by $100 million with a total bid of $300 million, according to the report.
SSM Health’s purchase of SLU Hospital will resolve tensions that have persisted between Tenet and the academic medical center since Tenet’s purchase of it, according to the report. However, this new deal may give unions an entrance to SSM’s operations, as St. Louis University Hospital belongs to the National Nurses United union.
More articles on hospital and health system transactions:
Lehigh Valley Health Network to merge with another Pennsylvania system
KishHealth System looks to partner with Northwestern Memorial: 3 things to know
Defining the ‘good’ merger: 4 key takeaways
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.