University of Texas, Ardent Health to acquire 10-hospital system in joint venture
The East Texas Medical Center (ETMC) Regional Healthcare System will be acquired by a new joint venture between Nashville-based Ardent Health System and the University of Texas (UT) System, the two announced in a Sept. 13 press release, with Ardent assuming control of day-to-day operations.
The system, based in Tyler, Texas, will combine ETMC’s nine hospitals and 39 physician clinics with UT Health Northeast Hospital and 12 UT clinics. While financial terms of the transaction weren’t disclosed, the new partners committed to make $150 million in improvements over the next five years to serve the estimated patient base of 300,000 in the region.
“We are delighted to partner with UT Health Northeast and the dedicated physicians, nurses and employees of ETMC,” Ardent President and CEO David T. Vandewater said in a statement. “At Ardent, we strongly believe in the value of partnerships that bring out the best in each organization. We each share a focus on service and a commitment to providing quality care to the communities we serve. Together, we will continue the great legacy of ETMC.”
A new board of directors will be formed to govern the new system, while Ardent will be the majority owner. The transaction will have to be approved by both regulators and the UT Board of Regents.
If the deal moves forward, Ardent will be operating 31 hospitals across six states.
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.