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Tenet’s acquisition of EMC nearing completion

Tenet’s acquisition of EMC nearing completion

Tenet agreed to purchase Emanuel Medical Center in February 2013 for $131 million.


POSTED June 24, 2014 9:59 p.m.

The sale of Emanuel Medical Center to Tenet Healthcare could be reaching its completion by the end of July.

“The sale of Emanuel Medical Center to Tenet Healthcare remains on track and we continue to work through the many details necessary to complete this complex transaction,” EMC spokesperson Pennie Rorex stated in an email. “We expect to conclude the transaction by the end of July.”

Emanuel Medical Center sent a letter to the Stanislaus County Board of Supervisors stating that “approximately 1,130 employees will have their employment permanently separated from EMC on or about July 31,” as part of Tenet’s acquisition.

The correspondence also states that most if not all the employees will be offered employment by Tenet Healthcare.

“The acquisition agreement provides that Tenet … will immediately offer to hire the affected employees in good standing into their same or similar positions, subject only to the employer's normal hiring practices. Thus, it is expected that most, if not all, of the affected employees will be offered employment by Tenet … such that they will not experience any period of unemployment in connection with this acquisition,” the letter states.

Tenet agreed to purchase the 209-bed licensed general acute care hospital in Turlock in February 2013 for $131 million. Tenet is the owner of Doctors Medical Centers in both Modesto and Manteca.

The acquisition has been approved by the Federal Trade Commission, which reviews hospital mergers and acquisitions to verify they don’t violate antitrust laws and to ensure consumers continue to get the benefit of competitive services.

The sale also was approved by the California Attorney General’s Office with the stipulation Tenet maintain the services EMC was offering for a minimum of five years, including the cancer center, cardiac care and the emergency room.

The transaction was expected to be completed by the end of March, but both parties agreed to extend the timeline to finalize all the details.

 

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