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DALLAS, SAN FRANCISCO, ST. LOUIS and TUCSON, Ariz. – July 15, 2015 – Tenet Healthcare Corporation (NYSE:THC), Dignity Health and Ascension have signed a definitive agreement to create a partnership that will own and operate Carondelet Health Network based in Tucson, Arizona. Ascension currently owns 100 percent of Carondelet. Tenet (which includes Abrazo Health in Arizona) will be the majority partner in the new joint venture and will manage the operations of three hospitals, related physician practices, outpatient and ambulatory services, and other affiliated businesses in Tucson and Nogales, Arizona. Dignity Health and Ascension will own minority interests in the partnership.
“We look forward to the opportunity to partner with two highly respected and dedicated healthcare organizations to improve healthcare delivery to the communities of Southern Arizona,” said Britt T. Reynolds, President of Hospital Operations at Tenet. “Through this innovative partnership, we will not only continue Carondelet’s 135-year healthcare mission to care for residents across Tucson and Southern Arizona, but will also connect Carondelet to a larger, growing statewide healthcare network, enhancing patient access to a wide range of healthcare resources throughout the state. This is consistent with Tenet’s strategy to create new, innovative models for patient care.”
Tenet and Dignity Health separately own and operate hospitals and clinics in the Phoenix area and together manage a growing accountable care organization, the Arizona Care Network (ACN). The organization currently includes more than 130 patient care facilities across Tenet’s and Dignity Health’s Phoenix-based healthcare systems, with more than 3,300 providers and more than 200,000 covered lives. A Tucson–based joint venture will connect Carondelet to ACN, which will provide increased access to care for patients, strengthen and grow Carondelet’s relationships with physicians, provide employee development opportunities for current and future employees, and fund strategic growth initiatives across Southern Arizona.
Linda Hunt, President and CEO of the Arizona Service Area for Dignity Health, said, “The partnership will continue the remarkable legacy of Carondelet in Arizona, while launching a new organization capable of maximizing the changing landscape of healthcare today and meeting the growing demands for quality care in Southern Arizona.”
“We are excited about this new relationship with Tenet and Dignity Health,” said Robert J. Henkel, FACHE, Executive Vice President of Ascension and President and CEO of Ascension Health. “Carondelet shares Tenet’s and Dignity Health’s commitment to provide high-quality, low-cost, patient-centered care. This relationship is an opportunity to strengthen those efforts and enhance healthcare across Arizona.”
The facilities in the new partnership will include:
Carondelet’s services also include imaging centers and other ambulatory services and ancillary businesses.
The joint venture will maintain Carondelet’s Roman Catholic heritage and identity through an agreement with the Diocese of Tucson. Additionally, Carondelet’s existing charity care policies will remain in place.
The transaction is subject to normal regulatory reviews and is expected to close in the third quarter of 2015. Financial terms are not being disclosed.
About Tenet Healthcare
Tenet Healthcare Corporation is a diversified healthcare services company with more than 125,000 employees united around a common mission: to help people live happier, healthier lives. Through its subsidiaries, partnerships and joint ventures, including United Surgical Partners International (USPI), the company operates 81 general acute care hospitals, 18 short-stay surgical hospitals and over 400 outpatient centers in the United States, as well as nine facilities in the United Kingdom. Tenet’s Conifer Health Solutions subsidiary provides technology-enabled performance improvement and health management solutions to hospitals, health systems, integrated delivery networks (IDN), physician groups, self-insured organizations and health plans. For more information, please visit www.tenethealth.com.
The terms "THC", "Tenet Healthcare Corporation" or “Tenet” refer to Tenet Healthcare Corporation or one or more of its subsidiaries or affiliates as applicable.
About Dignity Health in Arizona
Dignity Health in Arizona includes five outstanding hospitals – Chandler Regional Medical Center, Mercy Gilbert Medical Center, St. Joseph’s Hospital and Medical Center, which includes Barrow Neurological Institute, St. Joseph's Westgate Hospital and Arizona General Hospital. From this foundation, Dignity Health in Arizona has expanded into a comprehensive health care system, which includes imaging centers, clinics, specialty hospitals, urgent cares, insurance providers, an accountable care organization and other clinical partnerships. The Dignity Health Medical Group includes more than 40 practices and covers a wide range of specialties. Dignity Health in Arizona is part of Dignity Health, one of the nation’s largest health care systems.
Ascension (www.ascension.org) is a faith-based healthcare organization dedicated to transformation through innovation across the continuum of care. As the largest non-profit health system in the U.S. and the world’s largest Catholic health system, Ascension is committed to delivering person-centered care to all with special attention to those who are poor and vulnerable. In FY2014, Ascension provided $1.8 billion in care of persons living in poverty and other community benefit programs. More than 150,000 associates and 35,000 affiliated providers serve in 1,900 sites of care – including 131 hospitals and more than 30 senior care facilities – in 23 states and the District of Columbia. In addition to healthcare delivery, Ascension subsidiaries provide a variety of services and solutions including physician practice management, venture capital investing, treasury management, biomedical engineering, clinical care management, information services, risk management, and contracting through Ascension’s own group purchasing organization.
About Carondelet Health Network
Located in Tucson, Arizona, Carondelet Health Network is currently a Catholic, non-profit healthcare system dedicated to responding to the health, education, and wellness needs of Southern Arizonans. Carondelet’s first hospital was originally founded by the Sisters of St. Joseph of Carondelet in 1880. Today, Carondelet’s facilities include St. Mary's Hospital, St. Joseph's Hospital, Carondelet Heart & Vascular Institute at St. Mary’s Hospital, Carondelet Neurological Institute at St. Joseph’s Hospital, and Carondelet Holy Cross Hospital in Nogales, Arizona. Carondelet’s family of services also include primary and specialty care clinics, an ambulatory surgery center, imaging centers, and other outpatient services. In Fiscal Year 2014, Carondelet provided $72 million in Community Benefit to improve the health of its community and increase access to healthcare. For more information about Carondelet Health Network, please visit www.carondelet.org.
Corporate Communications Investor Relations
Donn Walker Brendan Strong
For Dignity Health in Arizona:
Tenet Healthcare Corporation Cautionary Statements
This release contains “forward-looking statements” – that is, statements that relate to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “assume,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include, but are not limited to, the factors disclosed under “Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the year ended December 31, 2013, and in our quarterly reports on Form 10-Q, periodic reports on Form 8-K and other filings with the Securities and Exchange Commission. The information contained in this release is as of the date hereof. The company assumes no obligation to update forward-looking statements contained in this release as a result of new information or future events or developments.
Tenet uses its company website www.tenethealth.com to provide important information to investors about the company including the posting of important announcements regarding financial performance and corporate developments.