Tenet Purchase of Vanguard Health Includes St. Vincent Hospital
Monday, June 24, 2013
The 321-bed acute care hospital located in Worcester was purchased by Vanguard in January 2005. St. Vincent offers a variety of specialty care centers including laparoscopic surgery, cardiovascular medicine including open heart surgery, cancer medicine, family centered maternal and child health services, general and vascular surgery, modern intensive care centers, neurosurgery, psychiatric services, orthopedics, and advanced diagnostic services including an MRI. An extensive array of outpatient services including same day surgery, radiation oncology and a pain clinic are also available.
The hospital was founded by the Catholic organization Sisters of Providence in 1893 and was named after the patron saint of the Sisters' order, Saint Vincent de Paul. In 1990, the hospital merged with the Fallon Healthcare System.
The Nashville-based Vanguard also owns MetroWest Medical Center, with locations in nearby Framingham and Natick.
A request for comment on behalf of Vanguard from Dennis Irish was not returned.
The acquisition details
According to a report issued by Tenet, it will acquire Vanguard for $21 per share in an all cash transaction. The acquisition is valued at $4.3 billion including the assumption of $2.5 billion in Vanguard debt. Tenet expects the transaction to be accretive to earnings in the first year. Anticipated annual synergies are $100 million to $200 million, according to Tenet.
Both Boards of Directors have unanimously approved the transaction and Tenet has secured fully committed financing from Bank of America Merrill Lynch.
“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 of 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.”
Fetter told analysts on a conference call earlier today that the deal signaled a new season of acquisitions for Tenet, which has acquired only one hospital in the past eight years. "It is a turning point for Tenet," he said.
Vanguard Health Systems
Vanguard Health Systems owns and operates 28 acute care and specialty hospitals and complementary facilities and services in Worcester, metropolitan Chicago, Illinois; metropolitan Phoenix, Arizona; metropolitan Detroit, Michigan; San Antonio, Texas; Harlingen and Brownsville, Texas; and metropolitan Boston, Massachusetts. The company’s strategy is to develop locally branded, comprehensive health care delivery networks in urban and suburban markets.
Tenet Healthcare Corporation
Tenet Healthcare Corporation, a leading health care services company, through its subsidiaries operates 49 hospitals, 126 free-standing outpatient centers and Conifer Health Solutions, a leader in business process solutions for health care providers that serves over 600 hospital and other clients nationwide. Tenet’s hospitals and related health care facilities are committed to providing high quality care to patients in the communities they serve.