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Sunday, December 29, 2019

Tenet’s $350M divestiture deal faces opposition

Two health systems are voicing opposition to Dallas-based Tenet Healthcare’s plan to sell its hospitals and other facilities in the Memphis, Tenn., area to Methodist Le Bonheur Healthcare, according to the Memphis Business Journal.
Tenet entered into a definitive agreement Dec. 12 to sell Saint Francis Hospital-Memphis, Saint Francis Hospital-Bartlett (Tenn.), the physician practices associated with the hospitals, and six urgent care centers to Memphis-based Methodist Le Bonheur.
The $350 million deal is facing opposition from Baptist Memorial Health Care and Regional One Health, both based in Memphis.
Though Baptist Memorial Health Care hasn’t formally opposed the transaction with the FTC, the agency “will have an interest” in reviewing the deal, Baptist Memorial Health Care President and CEO Jason Little said, according to the report.
“We have not filed any opposition with the Federal Trade Commission; however, given the magnitude of this transaction we are reasonably certain the FTC will be reviewing this proposed transaction given the potential negative impact it could have on the consumers in Memphis,” a Baptist spokesperson told the Memphis Business Journal.
Regional One said it is “actively considering options” to oppose the deal, according to the report.
If the transaction closes, Methodist Le Bonheur Healthcare would have the highest number of inpatient admissions in the Memphis market, followed by Baptist Memorial Health Care, according to the report.

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