Acquisition of Tenet’s Pacific Coast Network would expand unrestricted access to healthcare for Orange County and beyond
Orange, Calif., Feb. 1, 2024 — The Regents of the University of California, on behalf of the University of California, Irvine, has entered into a definitive agreement with Tenet Healthcare Corporation (NYSE: THC) to acquire Tenet’s Pacific Coast Network. The network will become part of UCI Health, the clinical enterprise of UC Irvine.
“UC Irvine has deepened its healthcare commitment to the future of Orange County, our region and California,” said UC Irvine Chancellor Howard Gillman. “This journey in healthcare is deeply intertwined with the University of California’s dedication to bettering our communities, expanding access to premier healthcare, and pioneering the medical innovations of tomorrow, today. Our vision will bridge gaps in regional care and reinforce UCI’s place among the nation’s leading academic health systems while advancing solutions to challenges facing healthcare.”
Pending customary regulatory approvals, clearances, and closing conditions, the proposed acquisition would bring four medical centers in Lakewood, Los Alamitos, Fountain Valley and Placentia and associated outpatient locations into the UCI Health system. UCI Health currently delivers care at UCI Medical Center in Orange and a growing network of multispecialty care centers.
“At UCI Health, we are excited to add these new care sites to the UCI Health network and extend the benefits of our compassionate, high-level care, clinical innovation, and scientific discovery,” said Chad Lefteris, president and chief executive officer of UCI Health. “As Orange County’s only academic health system, UCI Health is unique in its ability to offer the highest level of advanced care powered by the research and innovation of a world-class public research institution.”
UCI Health recognizes a unique opportunity to build on the quality care already being delivered in the communities served by Tenet Healthcare’s Pacific Coast Network.
“These four hospitals are well-regarded in their communities for providing high-quality, compassionate care,” said Saum Sutaria, M.D., chairman and chief executive officer of Tenet Healthcare. “The local communities will benefit from the nationally recognized advancements, medical knowledge, research, and community focus that UCI Health brings as an innovative academic health system. UCI Health recognizes a unique opportunity to build on the quality care already being delivered in the communities served by the Pacific Coast Network.”
In a region with a population greater than that of two dozen states, UCI Health operates the only Level I trauma center, locally based National Cancer Institute-designated comprehensive cancer center, high-risk perinatal-neonatal service and is the largest regional burn center and leading provider of complex tertiary and quaternary care. The system’s clinical excellence has consistently placed UCI Health in the top 10 for quality and safety among the nation’s leading comprehensive academic health systems.
The acquisition also means more patients will have access to advanced therapies in the region’s largest and most diverse portfolio of clinical trials, ranging from cancer to neurosciences, digestive diseases, orthopedics and internal medicine specialties.
UCI Health and Tenet Healthcare’s Pacific Coast Network patients can continue receiving care at their local facilities as they normally would from the care teams they know and trust. The transaction is expected to be completed in spring 2024, subject to customary regulatory approvals, clearances, and closing conditions.
“It is a privilege to provide world-class care to Californians and we are excited to welcome the clinicians and co-workers from these Tenet Healthcare sites to UCI Health as partners in improving the health of local communities,” Lefteris said.
Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements are typically identified by words such as “expect,” “anticipate,” “assume,” “believe,” “budget,” “estimate,” “forecast,” “intend,” “plan,” “predict,” “project,” “seek,” “see,” “target,” or “will” and other similar words and expressions. Forward-looking statements speak only as of the date they are made. Neither Tenet nor UCI Health assumes any duty or undertakes to update forward-looking statements. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those that Tenet or UCI Health anticipated in its forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those included under Item 1A “Risk Factors” in Tenet’s Annual Report on Form 10-K, Tenet other filings with the Securities and Exchange Commission, as well as the possibility that the transaction may not be timely completed, if at all; that outstanding customary closing conditions are not satisfied in a timely manner or at all; and that the expected benefits of the transaction may not materialize in the timeframe expected or at all.
