Ardent Health Services, Nashville, and Ochsner Clinic Foundation, New Orleans, agreed to form a 50-50 joint venture to operate Summit Hospital, Baton Rouge, La.
Financial terms were not disclosed.
The deal, expected to close this fall, would give Ochsner its first acute-care property in the Louisiana capital, where the clinic employs 85 physicians.
Ardent, which bought Summit in 2001, said the facility is profitable but underutilized, with 60 occupied beds versus a licensed capacity of 201. Ardent President and Chief Executive Officer David Vandewater said, "We saw this as an opportunity for us to expand our physician base very quickly."
The hospital would continue to be managed by Ardent and its tax status would remain for-profit.