The sale of Emanuel Medical Center to Tenet Healthcare Corporation has officially been completed with Tenet taking over ownership of the 209-bed facility Friday and appointing Susan Micheletti as the hospital’s new chief executive officer.
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.
Along with the hospital, Tenet’s takes ownership of the Emanuel Cancer Center, which includes a partnership with Stanford Hospital and Clinics to provide radiation oncology services, five family practice and specialty clinics, and a joint venture interest in a free-standing imaging center.
The sale of EMC comes after obtaining the approval from 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.
“We are beginning a new chapter in EMC’s 97-year history, under new ownership and with a new leadership team,” said Jeffrey Koury, chief executive officer of Tenet’s Western Region. “We believe this is the right time and the right team to take the hospital forward in this challenging healthcare environment while preserving EMC’s historic mission for many more years to come.”
Tenet is retaining the employment of 1,130 individuals, which is about the entire hospital staff.
Micheletti has been the chief operating officer at Tenet’s San Ramon Regional Medical Center for the last 14 years. She joined San Ramon as controller upon its opening in 1990 and was promoted to chief financial officer five years later.
“Sue is a great fit with EMC,” said Koury. “She is a highly experienced hospital executive who is very well regarded by both the medical staff and the employees at San Ramon. She brings a wealth of talent, experience and energy to her new position at EMC and will be a very visible presence in the Turlock community.”
Micheletti said her first priority will be to become acquainted with the medical staff in the community and exploring new opportunities for the hospital.
“I’m excited to be taking this leadership role at Emanuel Medical Center and I look forward to meeting and getting to know the employees and physicians at EMC,” Micheletti said. “In the coming months, I will be working closely with the medical staff, governing board, employees and local leaders to explore additional opportunities to meet the healthcare needs of the Turlock community.”
Tenet acquired the hospital from Covenant Ministries of Benevolence, a family of Evangelical Covenant Church ministries.
“We selected Tenet to be the new owner of Emanuel Medical Center because we wanted to ensure that this vital community asset continues to serve Turlock for many decades to come,” said David Dwight, president of Covenant Ministries of Benevolence. “We are confident that we are leaving Emanuel Medical Center in good hands and that Tenet will be a dedicated and responsible steward of the hospital.”
Proceeds from the sale of Emanuel Medical Center will be used to form Legacy Health Endowment, a grant making foundation that will fund area health related causes, such as the Bill and Elsie Ahlem Cancer Endowment. The foundation is not operational as of yet, but will be overseen by a board of directors and Interim Chief Executive Officer Jennifer Larson.
Also formed in the wake of the sale of Emanuel is EMC Health, Inc., which will conduct the post-acquisition business operations of the organization, including collecting accounts receivable, administering Festival of Trees, donor relations, and operating Jessica’s House.
Linda Stuhmer, who previously served as Emanuel’s legal counsel for six years, is the chief executive officer.