Tenet Healthcare Corporation (NYSE: THC) and John Muir Health today announced the creation of a joint venture partnership between San Ramon Regional Medical Center, a 123-bed acute care hospital in San Ramon, Calif., and John Muir Health, based in Walnut Creek, Calif. John Muir Health is a not-for-profit integrated system of doctors, hospitals and other healthcare services in the San Francisco Bay area.
Through this partnership, John Muir Health will invest approximately $100 million to acquire a 49 percent ownership interest in San Ramon Regional Medical Center, and together, the two organizations will expand and improve the efficiency and coordination of care in the Tri-Valley area and nearby communities, including San Ramon. This transaction is expected to close on or before March 31, 2013 and is subject to customary approvals and other closing conditions. John Muir Health and Tenet will also jointly develop outpatient services, such as Ambulatory Care Centers and other projects to be determined, in the Tri-Valley area and nearby communities.
The new partnership will build on the strengths of both organizations, increase patient access to a superior network of services and align outpatient and physician-focused healthcare in the region. New hospital and ambulatory care governing boards will be selected by both organizations. While the two organizations will work together to further develop San Ramon Regional Medical Center and future outpatient projects in the area, John Muir Health’s existing hospitals, facilities and other assets are not included in the partnership agreement.
“We are proud to partner with such a well-respected healthcare provider,” said Gary Sloan, chief executive officer of San Ramon Regional Medical Center. “John Muir Health has a long and valued reputation in the Bay area and is a great strategic partner for our hospital. Through our shared values and commitment to deliver outstanding patient care, we are creating a comprehensive, integrated healthcare network.”