(Story updated at 3:45 p.m. ET.)
Tenet Healthcare Corp., Dallas, has completed its $1.8 billion acquisition of Vanguard Health Systems, Nashville.
“We've been planning for this day for a long time,” Tenet President and CEO Trevor Fetter said. “We begin in earnest in a couple of weeks, digging in on our strategy.”
The deal, which closed earlier than expected, creates a system with 77 acute-care hospitals, five health plans and six accountable-care organizations, according to Tenet. It also bolsters Tenet's strength in the key state of Texas and adds population health management capabilities to one of the country's largest investor-owned hospital chains.
Tenet also hopes to extract greater profitability from Vanguard's hospitals through the services of Conifer Health Solutions, its revenue-cycle management subsidiary.
The $4.3 billion purchase price also includes the assumption of $2.5 billion in Vanguard debt. Tenet in early September issued $2.8 billion in senior unsecured and $1.8 billion in senior secured bonds to refinance its existing debt obligations and help fund the acquisition.