John Muir Health, Walnut Creek, Calif., has formed a joint venture with Tenet Healthcare Corp. that will give the not-for-profit system a 49% stake in Tenet's San Ramon (Calif.) Regional Medical Center.

John Muir, which has three hospitals and a number of outpatient and urgent-care centers in the San Francisco Bay area, will invest about $100 million in the 123-bed facility in a deal that's expected to close by March 31. Other terms were not disclosed.

The two systems will also jointly develop outpatient services in nearby communities, according to a news release (PDF). They will also select new governing boards to oversee the hospital and ambulatory care.

Jeff Koury, senior vice president of operations for Tenet's California region, said in the release that the for-profit, Dallas-based system continually looks at collaboration opportunities “to maximize effectiveness, reduce costs and integrate patient care coordination across the care continuum.”