Adventist Health has finalized a $550 million acquisition of two central California hospitals from Tenet Healthcare. The deal, which includes Sierra Vista Regional Medical Center, Twin Cities Community Hospital, their affiliated physician practices, and other related operations, was announced in February and closed on March 1st, according to a press release from Adventist.
The hospitals have been renamed Adventist Health Sierra Vista and Adventist Health Twin Cities and are now part of the system’s Central Coast Service Area. Adventist assures patients that the transition will not affect their care or accepted insurance.
“It was truly a privilege to round on patients this morning, an invigorating experience with an incredible team of clinicians,” Adventist Health CEO and President Kerry Heinrich said in the announcement. “I am grateful for the opportunity to expand our mission to the Central California Coast. We are committed to providing access to the full continuum of care that our patients deserve and is absolutely essential to the community.”
With the acquisition of these two hospitals, Adventist Health now operates 28 hospitals and reported $5.4 billion in total revenue during its most recent fiscal year. Eleze Armstrong, who previously served as CEO of Twin Cities Community Hospital and chief operating officer for Sierra Vista Regional Medical Center, has been named the interim CEO for both hospitals.
Tenet Healthcare, a for-profit company, has been actively selling hospitals in recent months. This $550 million deal follows a $975 million four-hospital selloff to UCI Health and a $2.4 billion sale of three South Carolina hospitals to Novant Health.
During a recent earnings call, Tenet executives hinted at potentially selling more hospitals in the coming year, with the expectation of generating over $1 billion in funds. CEO Dr. Saum Sutaria indicated the company’s openness to considering offers for the right price.
