With a deal in place to acquire nearby Creighton University Medical Center, Alegent Health could soon increase its dominance in the Omaha, Neb., market.
The takeover would consolidate four major hospital players into three and give Alegent roughly half of the adult acute-care market.
Alegent, part of Catholic Health Initiatives, announced last week that it was acquiring the medical center from Creighton University and Tenet Healthcare Corp., Dallas. A Tenet news release said the sale transaction price is expected to be about $63 million, and the deal is expected to close in the second quarter.
Publicly traded Tenet has held a 74% stake in a limited liability company that operates 334-bed Creighton University Medical Center since 1995. Creighton University holds the remaining 26%. Both parties are selling their stakes in the limited liability company.
“The university will no longer be in the hospital business,” said Kim Manning, a spokeswoman for Creighton, who noted that the university's health sciences schools will continue to manage academic components. The primary teaching sites for those programs will be at Alegent.
Alegent will also take over operations of Creighton's physician group, Creighton Medical Associates, and plans to integrate them into Alegent Health Clinic.
Creighton University and Alegent will make matching contributions to a strategic investment fund, and Alegent will also make an annual financial contribution to Creighton's health sciences schools.