Baylor Scott & White Health and Tenet Healthcare Corporation have reached a definitive agreement to sell Baylor Scott & White Medical Center-White Rock, a 218-bed hospital located in Dallas, Texas, to Pipeline Health.
The deal comes as the winding down 2017 was a year of many and major consolidations, mergers and acquisitions. Among the most notable: CVS Health bought Aetna, Gina merged with Humana, Anthem completed its acquisition of Health Sun, and among the biggest hospital deals were Ascension purchasing Presence Health and Carolinas HealthCare System combining with the University of North Carolina Health Care.
Baylor Scott & White Medical Center-White Rock is part of a joint venture partnership with Baylor Scott and White Health, in which Tenet is the minority owner.
The transaction is expected to be completed in the first quarter of 2018, subject to regulatory approvals and customary closing conditions.
Baylor Scott & White Health is one of the largest nonprofit healthcare systems in Texas. With total assets of $10.8 billion, it includes 48 hospitals, 5,500 physicians and 44,000 employees.
Pipeline Health is a hospital management company based in Manhattan Beach, California.
Kaufman Hall projected in mid-October that 2017 was set to outpace 2016 in M&A activity. Managing Director Anu Singh said that transaction are on the rise as systems look to scale and add capabilities to form multi-business unit health systems.
"Organizations are pursuing partnerships and collaborations in order to remain competitive and strengthen their market offerings, so that they can continue serving the healthcare needs of their communities," Singh said at the time. "We're also seeing an uptick in creative affiliations, with partnerships using non-traditional models to achieve their strategic goals in response to a new set of market factors that were not present a decade ago."