Tenet Healthcare Corp. and Baylor Scott & White Health, both based in Dallas, say they’re restructuring their joint venture agreements for the ownership and operation of three North Texas hospitals.
The three facilities—Baylor Scott & White Medical Center-Centennial, Baylor Scott & White Medical Center-Lake Pointe, and Baylor Scott & White Medical Center-Sunnyvale—are among five local hospitals that in 2016 became part of a joint-venture, co-management agreement between the two companies.
Late last year it was announced that one of the five, Baylor Scott & White Medical Center-Garland, would be closed, effective March 1. The other hospital under the JV agreement, Baylor White and Scott Medical Center-White Rock, is being sold to California-based Pipeline Health LLC for an undisclosed sum.
Currently, Baylor Scott & White and Tenet co-own the Centennial, Lake Pointe, and Sunnyvale hospitals, with Baylor Scott & White serving as the majority owner and Tenet as the minority owner and operator of the three facilities.
Under the terms of a definitive agreement announced Thursday, however, Baylor Scott & White will acquire Tenet’s minority interest in the Centennial and Lake Pointe facilities and take over the operation of both hospitals.
Meantime, the Sunnyvale facility, which is a joint venture among physicians, Baylor Scott & White and Tenet, will become part of Texas Health Ventures Group, an existing joint venture between Tenet’s United Surgical Partners International subsidiary and Baylor Scott & White. Texas Health Ventures currently includes 36 Dallas-Fort Worth facilities, all owned in partnership with physicians and operated by the USPI subsidiary.
Tenet and Baylor Scott & White said they expect the transactions to be completed this spring.
