The deal involves Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical, Placentia-Linda Hospital, and other related operations
UCI Health, the clinical enterprise of the University of California, Irvine, has agreed to acquire Tenet Healthcare’s Pacific Coast Network in Southern California, for $975m in cash.
The transaction includes four hospitals and associated operations in Orange County and Los Angeles County.
UCI Health will acquire Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical, and Placentia-Linda Hospital.
Upon completion of the acquisition, the Pacific Coast Network will become part of UCI Health.
According to UCI Health, the acquisition will enable more patients to access advanced therapies for cancer, digestive diseases, neurosciences, orthopaedics, and internal medicine portfolio.
UCI Health president and CEO Chad Lefteris said: “At UCI Health, we are excited to add these new care sites to the UCI Health network and extend the benefits of our compassionate, high-level care, clinical innovation, and scientific discovery.
“As Orange County’s only academic health system, UCI Health is unique in its ability to offer the highest level of advanced care powered by the research and innovation of a world-class public research institution.”
During the transition, Tenet will hold onto net working capital associated with pre-closing operations and its subsidiary, Conifer Health Solutions will continue to offer revenue cycle management services.
Tenet chairman and CEO Saum Sutaria said: “These four hospitals are well-regarded in their communities for providing high-quality, compassionate care.
“The local communities will benefit from the nationally recognised advancements, medical knowledge, research, and community focus that UCI Health brings as an innovative academic health system.
“UCI Health recognises a unique opportunity to build on the quality care already being delivered in the communities served by the Pacific Coast Network.”
The acquisition is anticipated to conclude in spring 2024, subject to standard regulatory approvals, clearances, and closing conditions.
Tenet has also completed a separate $2.4bn deal in which it sold three of its hospitals and related operations in South Carolina to Novant Health. The deal included Coastal Carolina Hospital, Hilton Head Hospital, and East Cooper Medical Center.