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Tenet to exit Chicago market as Sanford looks to enter

Dallas-based Tenet Healthcare entered into a definitive agreement this month to sell its three remaining Chicago-area hospitals. Although Tenet plans to exit the market, Sioux Falls, S.D.-based Sanford Health may expand into Chicago.

Tenet has entered into agreements to sell all of its hospitals in the Chicago area in the past year. In October, Tenet signed a definitive agreement to sell MacNeal Hospital in Berwyn, Ill., to Chicago-based Loyola Medicine, part of Livonia, Mich.-based Trinity Health. The transaction closed in March. On July 18, the company announced plans to sell its three remaining hospitals in the Chicago area: Weiss Memorial Hospital in Chicago; Westlake Hospital in Melrose Park, Ill.; and West Suburban Medical Center in Oak Park, Ill.

Under the deal, which is expected to close in the fourth quarter, Tenet will sell the hospitals to TWG Partners, a Chicago-based healthcare investment firm, and Manhattan Beach, Calif.-based Pipeline Health. The facilities will be managed by Pipeline. 

Although Tenet is leaving the Chicago market, Sanford Health is eyeing potential opportunities in the Windy City.

In June, Sanford Health President and CEO Kelby K. Krabbenhoft revealed the health system is in talks with an undisclosed Chicago-based organization while announcing the system's intent to merge with Evangelical Lutheran Good Samaritan Society in Sioux Falls. In a follow-up email to the Argus Leader, the health system said: "We are in discussions with various entities, including one in Chicago. Both of our respective boards have expressed interest in continuing these discussions."

More articles on healthcare industry transactions:

Cleveland Clinic makes foray into China
9 private equity firms vied for Envision before KKR deal: 3 things to know
Beth Israel, Lahey merger faces pushback from attorney general

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