M&As Realign Philadelphia-area Hospitals
In separate deals finalized this week, Penn Medicine acquired Princeton HealthCare, and Tenet Healthcare Corp. completed its sale of two hospitals to an affiliate of Paladin Healthcare.
Dallas-based Tenet Healthcare Corp. has completed the sale of two Philadelphia-area acute care hospitals and related operations to American Academic Health System, LLC, an affiliate of Paladin Healthcare.
Tenet and Paladin announced the deal in September, under which Tenet was paid $152.5 million in cash and a secured promissory note for $17.5 million. The deal was finalized this week, as Tenet announced plans to cut $250 million in costs and layoff as many as 2,000 employees.
Ownership and management of Hahnemann University Hospital and St. Christopher's Hospital for Children and their physician practices and affiliated operations transferred to AAHS on Thursday.
Also this week, Princeton HealthCare System became part of the University of Pennsylvania Health System, finalizing an acquisition process that began in 2015.
Financial terms were not disclosed.
The Plainsboro, NJ-based not-for-profit health system, located 40 miles north of Philadelphia, includes the flagship University Medical Center of Princeton, Princeton House Behavioral Health, Princeton HomeCare and the Princeton Medicine physician network.
As part of the transaction, PHCS and its affiliates are now Penn Medicine Princeton Health, and the medical center's new name is Penn Medicine Princeton Medical Center.
"PHCS has an impressive reputation for providing high-quality care to patients close to home, and innovating in many types of community-based health and wellness initiatives," Ralph W. Muller, CEO of the University of Pennsylvania Health System, said in a joint announcement.
"Now, we can offer a powerful partnership to patients throughout the region PHCS serves, continuing the services they already depend on, coupled with access to world-class care for complex conditions and innovative clinical trials available at Penn Medicine," Muller said.
The Philadelphia-based University of Pennsylvania Health System includes five hospitals, including the Hospital of the University of Pennsylvania and Penn Presbyterian Medical Center, as well as primary and specialty physician networks and outpatient facilities, and home and hospice services.
"This is a significant day in our history, and we look forward to being an even stronger organization, clinically and financially, as we continue to fulfill our almost century-old mission of serving this community," PHCS President and CEO Barry S. Rabner said.
"We could not ask for a better partner than Penn Medicine," he said. "Members of our community will continue to receive high-quality care right here, close to home. They also will benefit from easier access to the latest medical breakthroughs, clinical trials, cutting-edge technologies and specialized clinical expertise – both here and elsewhere in the Penn Medicine system."
Founded in 1919, PHCS serves more than 1.3 million people in central New Jersey. The health system employs 3,000 staff and more than 1,100 physicians.
PHCS announced in mid-2015 that it would begin evaluating partnerships. In July 2016 the health system signed a letter of intent with UPHS. The search process considered 17 potential partners, PHCS said.