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Tenet, Dignity Health and Ascension ink definitive agreement for JV: 6 things to know

Dallas-based Tenet Healthcare, San Francisco-based Dignity Health and St. Louis-based Ascension have signed a definitive agreement to create a partnership to own and operate Carondelet Health Network based in Tucson, Ariz.

Here are six things to know about the deal.

1. Tenet will be the majority partner in the new joint venture and will manage the operations of three hospitals, related physician practices, outpatient and ambulatory services, and other affiliated businesses in Tucson and Nogales, Ariz. Dignity Health and Ascension, which currently owns 100 percent of Carondelet, will own minority interests in the partnership. 

2. Tenet and Dignity Health separately own and operate hospitals and clinics in the Phoenix area and together manage a growing accountable care organization, the Arizona Care Network.  A Tucson–based joint venture will connect Carondelet to ACN.

3. Linda Hunt, president and CEO of the Arizona Service Area for Dignity Health, said in a news release, "The partnership will continue the remarkable legacy of Carondelet in Arizona, while launching a new organization capable of maximizing the changing landscape of healthcare today and meeting the growing demands for quality care in Southern Arizona."

4. The facilities in the new partnership will include:

  • St. Joseph's Hospital in Tucson(486 beds)
  • St. Mary’s Hospital in Tucson (400 beds)
  • HolyCrossHospital in Nogales (25 beds)
  • Carondelet Heart & Vascular Institute at St. Mary's Hospital
  • Carondelet Neurological Institute at St. Joseph's Hospital
  • Carondelet Medical Group
  • Carondelet Specialist Group

Carondelet's services also include imaging centers and other ambulatory services and ancillary businesses.

5. The joint venture will maintain Carondelet's Roman Catholic heritage and identity through an agreement with the Diocese of Tucson. In addition, Carondelet's existing charity care policies will remain in place.   

6. The transaction is subject to normal regulatory reviews and is expected to close in the third quarter of 2015.  Financial terms will not be disclosed.


More articles on healthcare transactions and valuation issues:

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3 things to know about the North Shore-LIJ, PBMC merger
Mount St. Mary's, Catholic Health complete merger: 5 things to know


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