Tenet to Buy Emanuel Medical Center
In order to widen its integrated healthcare network in the Central Valley region of California, Tenet Healthcare Corporation (THC) entered into an agreement to acquire Emanuel Medical Center. The transaction is expected to culminate in the second quarter of 2013 pending regulatory approval.
The deal benefits Tenet as it will help to enhance its integrated healthcare network. The network will further incorporate physician organizations and develop outpatient facilities in patient-friendly locations for patient-care improvement, and expand its operations in the Central Valley.
Subsequent to the deal, Turlock Calif. based Emanuel will also be integrated into Tenet’s healthcare network, though it will remain affiliated to the Evangelical Covenant Church.
With the aim to provide patient-centered care in the region, Emanuel Medical Center will partner with Doctors Medical Center of Modesto and Doctors Hospital of Manteca following the deal. These hospitals will combine efforts to work towards improving the efficiency and coordination of healthcare delivery in communities where they provide their services.
Tenet, which has been expanding its business continuously for some time now, considers Emanuel Medical Center to be the perfect choice for its Central Valley expansion as patients would be able to receive services close to their homes.
In order to expand its operations, the company engages in a number of acquisitions and partnerships. Preceding this deal last month, Tenet announced a joint venture with the non-profit healthcare organization John Muir Health. Through the deal Tenet’s San Ramon Regional Medical Center and John Muir Health will expand to improve the efficiency and coordination of care in the Tri-Valley area and nearby communities, including San Ramon.
Among other healthcare majors, Acadia Healthcare Company Inc. (ACHC) announced the purchase of Delta Medical Center last month to enter the Memphis market. Health Management Associates Inc. (HMA) also declared that one of it’s subsidiaries has entered a partnership agreement with the 480-bed Bayfront Health System, located in St. Petersburg, FL. Consequently Health Management will acquire an 80% interest in Bayfront Health System, and introduce an affiliation with ShandsHealthCare, belonging to UF&Shands, the University of Florida Academic Health Center. Again, Mednax Inc. (MD) acquired South Oakland Anesthesia Associates, P.C. (:SOAA) from Edgemont Capital Partners, L.P. The transaction culminated on Dec 21, 2012.
Tenet carries a Zacks Rank #2 (Buy).
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