Ascension Health, the nation’s largest Catholic health care system, has signed a letter of intent to sell a majority interest of its Arizona hospitals to two other health systems through the creation of a joint venture. Carondelet Health Network, Ascension’s subsidiary that runs three hospitals in Arizona.
According to the statement from Ascension, “Ascension would have a minority interest in the joint venture while Tenet Healthcare Corp. would be the majority partner with management responsibilities for all of Carondelet’s assets, including the three hospitals, affiliated medical group, specialist group and any other ancillary businesses.”
Dignity Health, also an Arizona health system, currently operates four hospitals in Arizona while Tenet operates six in the Arizona market.
According to an article in the St. Louis Dispatch, the joint venture would mean that Carondelet would join Tenet and Dignity’s accountable care organization, Arizona Care Network.
The joint venture essentially means that Ascension is leaving the Arizona market, Tenet analyst, Brian Tanquilut told the Dispatch.
Ascension gave up on plans to sell two Kansas City hospitals after a lengthy FTC review that appeared as if the regulators would not rule in Ascension’s favor, earlier this year,
Ascension Health, led by CEO Robert Henkel, reported total operating revenue of $17 billion for fiscal 2013.