Santa Barbara, Calif.-based Tenet Healthcare Corp. and Nashville, Tenn.-based OrNda HealthCorp announced special shareholder meetings scheduled for Jan. 28 to approve their proposed $3.1 billion merger. The companies also said they expect the merger to close by the end of January, pending final regulatory approval. The deal was originally expected to close in March. The companies' meetings will be conducted in their respective cities. In October, Tenet said it would acquire OrNda in a $1.8 billion stock swap and assume $1.3 billion of OrNda's debt. Tenet executives said they hadn't yet reached an agreement with the Federal Trade Commission, which made a second request for information regarding possible anti-competitive effects.
Allegiance Corp., the recent spinoff from Baxter International, is getting into the hospital work-force consulting business. Late last week, the McGaw Park, Ill.-based company announced it had acquired West Hudson and Co., a private consulting company specializing in hospital restructuring projects. Terms weren't disclosed. West Hudson employs 200 consultants and has annual sales of $38 million. Allegiance, which split off from Baxter on Oct. 1, is trying to become a full-service cost-management firm. Its core business is operating-room supplies, but it also has diversified into medication cost management.
Premier has entered a $1.8 billion, 71/2-year purchasing agreement covering a wide range of supplies with Becton Dickinson and Co., Franklin Lakes, N.J. Set to begin April 1, the purchasing arrangement includes needles and syringes, infusion systems, blood collection products and various microbiological supplies. Products under the agreement are covered primarily on a sole-source basis, Premier said. To participate, member hospitals and systems would be required to commit to fill at least 90% of their needs with Becton Dickinson. The companies estimate the agreement will yield annual sales of $240 million. No savings estimates were released.
The Federal Trade Commission has given Baxter International the green light to acquire Vienna, Austria-based Immuno International AG in a deal that would create the world's largest plasma products company. To resolve antitrust concerns, Baxter has agreed to divest U.S. rights to manufacture and sell Autoplex T, a treatment for hemophiliacs. Baxter also has agreed to nonexclusively license U.S. rights to Immuno's Tisseel fibrin sealant, a biologically derived product used to seal wounds. Baxter will continue clinical trials of its own fibrin sealant. Baxter valued the Immuno deal at $623 million. It's expected to close by mid-1997, a spokeswoman said.