The sale will transfer ownership of Hahnemann University Hospital, St. Christopher’s Hospital for Children and other related operations in Philadelphia to American Academic Health System, a new company formed by Paladin Healthcare.
“Paladin shares [Tenet’s] commitment to providing compassionate, exemplary care and service, and we believe that entrusting the stewardship of these institutions to its affiliate AAHS will benefit the patients, employees, physicians and community for years to come,” said Mike Halter, CEO for Tenet’s Philadelphia division and CEO of Hahnemann University Hospital.
The transaction is expected to be completed in early 2018. It will need regulatory approval.
The decision to sell the two hospitals comes a day after Tenet announced it would replace longtime CEO Trevor Fetter and “refresh” the composition of its board of directors.