Tenet to Pay Above-Market Rates for Vanguard's Chicago Hospitals

In June, Dallas-based Tenet Healthcare Corp. said it will acquire Nashville, Tenn.-based Vanguard Health Systems for $4.3 billion, and based on documents with Illinois regulatory agencies, Tenet will be paying about $582,000 per bed across Vanguard's four Chicago-area hospitals, according to a Crain's Chicago Business report.

According to Irving Levin Associates' annual acquisition report, the median per-bed price of a Chicago hospital was $450,000. However, some in the industry believe the higher price tag comes with Tenet expanding its reach.

"I think it's kind of expected if you're going to get size and diversity that you may have to pay up a little bit more," Adam Lynch, vice president at Principle Valuation, told Crain's Chicago Business.

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