Tenet and Baylor Scott & White closed their previously announced agreement to co-own five hospitals in northern Texas. The facilities included are Centennial Medical Center in Frisco, Doctors Hospital at White Rock Lake in Dallas, Lake Pointe Medical Center in Rowlett, Texas Regional Medical Center at Sunnyvale and Baylor Scott & White Medical Center – Garland. The hospitals will operate under the Baylor Scott & White Health brand, expected to be implemented in early 2016. 

"We have already made meaningful progress in advancing population health through our physicians' participation in the Baylor Scott & White Quality Alliance, a leading local accountable care organization, and the completion of this joint venture is an important next step in coordinating top-quality, value-based care in North Texas," said Trevor Fetter, chairman and CEO of Tenet Healthcare.

Baylor Scott & White Health is the largest not-for-profit health care system in the state of Texas. The organization now includes 49 hospitals, more than 5,800 physicians, the Scott & White Health Plan and Baylor Scott & White Quality Alliance, a network of clinical providers and facilities. 

Our Take: Tenet has been actively pursuing deals that best position the hospital operator in the new world of value-based care, primarily by strengthening its position in markets where it already dominates and shedding hospitals in markets where it would be cost-prohibitive to be a market leader.

On January 4, Tenet announced it sold two North Carolina hospitals and 19 physician practices to Duke LifePoint.
In December, the company said it reached an agreement to sell its five Atlanta-area hospitals, as well as 26 physician clinics, to WellStar Health System.

In October, Tenet announced a joint venture with Baptist Health System to own and operate a network of five healthcare facilities serving Birmingham and central Alabama.

And in September,  it announced a joint venture to own and operate Tuscon, Ariz.-based Carondelete Health Network, along with partners Dignity Health and Ascension. 

“We're still driving, generally speaking, to be positioned to be a leading, to be an early, aggressive participant in a delivery system that's focused more on fee for value versus fee for service, where we're going to be more at risk for the care we deliver, and it's going to be based upon outcomes,” a Tenet executive recently told us. “It's going to be based on taking care of populations.”

Based on recent activity, Tenet will continue its efforts to strengthen its position in Texas, Alabama and Arizona—all states where the hospital operator already has an ACO or other value-based collaborations in place.

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