Ascension Health, Dignity Health and Tenet Healthcare Corp. have reached a definitive agreement in a joint venture that would make Tenet the majority owner of the Carondelet Health Network in Arizona.
St. Louis-based Ascension and San Francisco-based Dignity, both not-for-profit systems, would each have a minority stake in the joint venture, which would be operated by Tenet, a publicly traded chain based in Dallas.
Carondelet is a three-hospital subsidiary of Ascension, the nation's largest Catholic health system. Terms of the deal were not disclosed, but in bond documents released last October, Dignity said it would invest $30 million and Tenet would own 60% of the venture, with the remaining interest evenly split between Dignity and Ascension.
The Tucson-based Carondelet system has had a negative operating cash flow and is one of Ascension's recent strategic divestitures. Ascension is seeking to shed unprofitable operations and beef up its presence in more favorable markets, according to analysts with Moody's Investors Service. —Melanie Evans