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Ascension, Carondelet to Partner with Tenet, Dignity Health

John Commins, for HealthLeaders Media, July 24, 2014

Under the deal, which has entered the due diligence phase, Tenet would become majority partner responsible for all operations of Carondelet's assets and Ascension would all but leave the Arizona market.

Tucson, AZ-based Carondelet Health Network and parent Ascension Health are negotiating a joint venture with Tenet Healthcare Corp. and Arizona's Dignity Health, the health systems announced jointly this week.

Under the deal, which has entered the due diligence phase, Tenet would become majority partner responsible for all operations of Carondelet's assets, including St. Joseph's and St. Mary's Hospitals in Tucson; Holy Cross Hospital in Nogales, AZ; Carondelet Medical Group; Carondelet Specialist Group; and Carondelet's ancillary businesses.

The deal means that Ascension is all but leaving the Arizona market, but the St. Louis, MO-based health system would hold a minority interest and Carondelet would continue its Catholic sponsorship.

Dignity Health's role in the joint venture and its stake in the partnership were not detailed in the joint media release. Executives from the three health systems said this week they would not comment beyond praising the deal in a joint media release.

The announcement marks the second major deal with statewide implications in Arizona in the past four weeks. In late June, Banner Health, the University of Arizona, and its affiliated University of Arizona Health Network announced that they will create a statewide healthcare organization.

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