DETROIT – Tenet Healthcare Corporation has signed an agreement to buy Vanguard Health Systems Inc., which owns the Detroit Medical Center.
The $1.8 billion sales was approved by both Boards of Directors and is expected to take place by the end of 2013.
"This unique strategic transaction will bring together organizations that share a common commitment to providing high quality care and create significant new growth prospects for Tenet," said Trevor Fetter, president and chief executive officer, Tenet. "This acquisition will take Tenet into new geographic markets, expand the breadth of our service offerings, diversify our earnings sources and increase the benefits we expect to realize under healthcare reform. This acquisition will also include a substantial contribution from the application of Conifer's capabilities to Vanguard's operations. We expect additional financial contributions to come from supply costs savings and labor management efficiencies."
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Following the sales, Tenet will own 79 hospitals and 157 outpatient facilities. It is to early to know if or how the sale will effect the DMC.