SSM Health, St. Louis, on Monday closed a deal to acquire St. Louis University Hospital from Tenet Healthcare Corp. There are plans to replace the hospital within five years.
Under the deal, St. Louis University will hold a minority stake in SSM Health's St. Louis operations. Tenet Healthcare sold the 356-bed hospital to the university, which then selected SSM Health as a partner.
SSM Health will make “immediate capital investments” and spend $500 million to build an outpatient center and replace the hospital, the system said in a news release announcing the deal. Tenet acquired St. Louis University Hospital from the university in 1998.
“While the current hospital has served the community well, we have the opportunity to construct state-of-the-art academic facilities that incorporate the best practices in patient-centered design,” William Thompson, SSM Health's president and CEO, said in the release. “This significant investment will enable us to deliver an improved patient experience and even better care for our community.”
Tenet Healthcare remains in St. Louis with an expanding ambulatory business and a hospital in the suburbs.
Terms of the deal, first announced in June, were not disclosed.
