The pending sale of Emanuel Medical Center to Tenet Healthcare moved a step closer to completion with the closing of an inquiry into the sale by the Federal Trade Commission.
Tenet agreed to purchase the 209-bed licensed general acute care hospital in Turlock in February for $131 million. Tenet is the owner of Doctors Medical Centers in both Modesto and Manteca.
The FTC 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, according to their website.
The FTC has completed its review of the sale and has stated that no further action was needed on the FTC’s part, according to EMC Assistant Vice President of Corporate Communications and Marketing Pennie Rorex.
“We are pleased that the Federal Trade Commission has completed its review of Tenet’s planned purchase of Emanuel Medical Center and will allow the transaction to proceed,” Rorex said. “The FTC’s decision was another important milestone in the acquisition process and we look forward to joining the Tenet family of hospitals.”
The sale is still under review by the California Attorney General’s Office. Because EMC is a nonprofit hospital and Tenet is a for-profit organization, the deal has to be reviewed and approved by the state attorney general’s office. The attorney general’s review process includes a public hearing and if needed preparation of expert reports.
The attorney general’s office in its impact report on the pending sale states that if the sale were to be approved, it would recommend that Tenet continue the same services and programs EMC maintains for at least five years after the purchase is finalized. Those services include the cancer center, cardiac care and the emergency room.
The attorney general’s office held a public hearing addressing the sale of EMC on May 31 and the public consensus was largely in favor of the sale.
The deal is expected to be finalized by the first quarter of 2014, Rorex said.