Emanuel Medical Center announced that it is in exclusive discussions with Tenet Healthcare Corporation for a possible collaboration in the delivery of hospital services in Turlock. The change in ownership could mean that a corporation would purchase the hospital currently owned by the Eveangelical Covenant Church.
Tenet Healthcare operates 49 hospitals nationally, eleven of which are located in California, including Doctors Medical Center in Modesto and Doctors Hospital in Manteca. In addition, Tenet operates over 100 free-standing outpatient centers and Conifer Health Solutions, a leader in business process solutions for health care providers serving nearly 400 hospital and health care entities nationwide.
“As health care delivery becomes more expensive and complex, and with the onset of the Affordable Care Act provisions, it is becoming even more challenging for independent hospitals to thrive,” said Emanuel President and CEO John Sigsbury. “An affiliation with a large healthcare system would enable Emanuel access to enhanced clinical integration and advanced information technology and operating systems, contracting relationships, capital resources, and nationwide purchasing programs that could sharply reduce our cost of care and allow wider access to hospital services for our local residents.”
“It is important to note that we are engaged in a due diligence process only, and no final agreements to partner together have been reached. We do not expect to announce any update on the status of these discussions until November,” Sigsbury said.
“Our board’s number one goal is to ensure the long term sustainability of hospital services in Turlock,” said Jennifer Larson, chair of Emanuel’s board of directors. “Tenet’s success in delivery of care nationwide demonstrates what we seek to gain in a long term agreement.”
For the past few years, the Board of Directors at Emanuel Medical Center has examined the long-term sustainability of health care within the Turlock community. Earlier this year, in July, the hospital discussed the possibility of sponsorship change from Covenant Church to another organization. A change of ownership, however, is only one of the possible outcomes of the Board’s exploration process.
Upon the completion of the exploration, the Board will make a recommendation to ensure the long-term sustainability of hospital services in Turlock. While the Board of Directors has currently not made any decisions regarding a change in ownership of the hospital, continual efforts are being made, such as the possible collaboration with Tenet Healthcare, to maintain Turlock’s long-term health care needs.