DALLAS & ST. LOUIS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE:THC) and Saint Louis University (SLU) have entered into a definitive agreement for the sale of Saint Louis University Hospital to SLU. The transaction is subject to customary regulatory approvals and other closing conditions and is expected to be completed during the third quarter of 2015.
Tenet purchased the 365-bed Saint Louis University Hospital from SLU in 1998. Since then, the two organizations have worked closely together to provide high-quality healthcare to the St. Louis region while training thousands of highly skilled medical professionals.
“We appreciate the collaborative and productive relationship that Tenet has enjoyed with Saint Louis University over the last 17 years,” said Trevor Fetter, chairman and chief executive officer of Tenet Healthcare. “With the rapid transformation of the healthcare system in recent years, we are committed to positioning our hospitals to continue delivering high-quality healthcare services. We believe this transaction will accomplish that for SLU Hospital and the St. Louis region. We look forward to working with the university to ensure a smooth transition for all stakeholders over the coming months.”
“For nearly two decades, Saint Louis University and Tenet have worked closely together to advance the practice of medicine in the St. Louis region,” said Fred P. Pestello, Ph.D., president of Saint Louis University. “This transaction reflects a significant investment in our SLUCare Physician Group, which is an elite academic medical practice committed to providing leading edge and compassionate patient care.”
In a separate transaction, Saint Louis University plans to contribute SLU Hospital to SSM Health, one of the nation’s largest Catholic not-for-profit health systems. In exchange, SLU will receive a minority membership interest — which includes a financial interest and governance rights — in SSM Health St. Louis, which provides a full continuum of healthcare services throughout the St. Louis region.
The Tenet-owned Des Peres Hospital in west St. Louis County and the MedPost Urgent Care Center in Ellisville, Mo., will remain part of the Tenet system and will continue to deliver high-quality healthcare.
In connection with this transaction, the company anticipates recognizing a pre-tax non-cash impairment charge of approximately $150 million to $160 million ($95 million to $100 million after-tax) during the second quarter of 2015.
About Tenet Healthcare
Tenet Healthcare Corporation is a national, diversified healthcare services company with 110,000 employees united around a common mission: to help people live happier, healthier lives. The company operates 80 hospitals, 219 outpatient centers, six health plans and Conifer Health Solutions, a leading provider of healthcare business process services in the areas of revenue cycle management, value based care and patient communications. For more information, please visit www.tenethealth.com.
The terms "THC," "Tenet Healthcare Corporation," "the company," "we," "us" or "our" refer to Tenet Healthcare Corporation or one or more of its subsidiaries or affiliates as applicable.
About Saint Louis University and SLUCare
Saint Louis University is a Catholic, Jesuit institution that values academic excellence, life-changing research, compassionate health care, and a strong commitment to faith and service. Founded in 1818, the University fosters the intellectual and character development of more than 13,000 students on campuses in St. Louis and Madrid, Spain. Building on a legacy of nearly 200 years, Saint Louis University continues to move forward with an unwavering commitment to a higher purpose, a greater good.
SLUCare Physician Group is the academic medical practice of Saint Louis University, with more than 500 health care providers and 1,200 staff members in hospitals and medical offices throughout the St. Louis region. SLUCare physicians are among the most highly trained in their fields — more than 50 specialties in all — and are national and international experts, renowned for research and innovations in medicine.
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