Tenet buys Two Hospitals for $244 Mil

WEST PALM BEACH, FL-Tenet Healthcare Corp. paid $244 million or $304,619 per bed for 801 beds at two local hospitals purchased from locally based Intracoastal Health Systems Inc.

In a prepared statement, Tenet says it is now South Florida’s largest private hospital operator, owning 13 acute-care facilities in the three-county region, including five in Palm Beach County. The two acquired properties produce $260 million in estimated annual net revenue.

The Santa Barbara, CA-based health services company intends to invest at least $36 million over the next five years in capital improvements at St. Mary’s Medical Center, a 460-bed facility, and Good Samaritan Medical Center, a 341-bed facility.

In keeping with a prior settlement agreement, Tenet pledged to operate existing acute-care facilities at each hospital for at least 10 years. It is offering jobs to all 3,000 employees now working for Intracoastal.

Earlier this year, Intracoastal negotiated a settlement agreement with Florida Attorney General Bob Butterworth to forego plans to eliminate acute-care services at St. Mary. Butterworth sued Intracoastal because of the potential impact on indigent patients who rely on the two facilities for health care services.