Tenet’s Joint Venture Closes on Carondelet Network in Tucson for $105 million

Carondelet Hospitals
Carondelet Hospitals

SMSJ Tucson Holdings, a new joint venture between Tenet Healthcare, Dignity Health in Arizona and Ascension a faith based healthcare organization, closed on the acquisition of Carondelet Health Network for approximately $105 million. Ascension prior to this owned 100 percent of Carondelet. Tent will be the majority partner in the new joint venture and will manage the operations of three hospitals, related physician practices, outpatient and ambulatory services, and other affiliated business in Tucson and Nogales, Arizona. Dignity and Ascension will own minority interests in the partnership.

The facilities in the new partnership will include:

  • St. Joseph’s Hospital (486 beds) 350 N Wilmot Rd in Tucson
  • St. Mary’s Hospital (400 beds) 1712 W Anklam Rd n Tucson
  • Holy Cross Hospital (25 beds) 1171 W Target Range Rd in Nogales
  • Carondelet Heart & Vascular Institute at St. Mary’s Hospital 4888 N Stone Ave in Tucson
  • Carondelet Neurological Institute at St. Joseph’s Hospital 350 N Wilmot Rd in Tucson
  • Carondelet Medical Group in multiple buildings across Tucson
  • Carondelet Specialist Group 6320 N La Cholla Blvd in Tucson

Carondelet’s services also include imaging centers and other ambulatory services and ancillary businesses.

The joint venture will maintain Carondelet’s Roman Catholic heritage and identity through an agreement with the Diocese of Tucson. Additionally, Carondelet’s existing charity care policies will remain in place.

The partnership was announced in July and closed on September 1st quicker than anyone had expected.

“We look forward to the opportunity to partner with two highly respected and dedicated healthcare organizations to improve healthcare delivery to the communities of Southern Arizona,” said Britt T. Reynolds, President of Hospital Operations at Tenet. “Through this innovative partnership, we will not only continue Carondelet’s 135-year healthcare mission to care for residents across Tucson and Southern Arizona, but will also connect Carondelet to a larger, growing statewide healthcare network, enhancing patient access to a wide range of healthcare resources throughout the state. This is consistent with Tenet’s strategy to create new, innovative models for patient care.”

Tenet and Dignity Health separately own and operate hospitals and clinics in the Phoenix area and together manage a growing accountable care organization, the Arizona Care Network (ACN). The organization currently includes more than 130 patient care facilities across Tenet’s and Dignity Health’s Phoenix-based healthcare systems, with more than 3,300 providers and more than 200,000 covered lives. A Tucson–based joint venture will connect Carondelet to ACN, which will provide increased access to care for patients, strengthen and grow Carondelet’s relationships with physicians, provide employee development opportunities for current and future employees, and fund strategic growth initiatives across Southern Arizona.