Loyola Medicine will acquire Chicago-based MacNeal Hospital and its related operations from Tenet Healthcare, the two systems announced.
In addition to MacNeal, a 368-bed facility, Loyola will acquire local physician practices owned by Tenet, the Chicago Health System, a practice association including nearly 1,000 doctors, and the associated accountable care organization, it announced.
With the deal, Tenet begins the process of exiting the Chicago market, according an article from the Chicago Tribune. The system also intends to sell three other Chicago-area hospitals: Weiss Memorial Hospital, Westlake Hospital and West Suburban Medical Center.
For 2015, Tenet turned a profit at MacNeal and West Suburban but not at Weiss or Westlake, according to the article. Tenet had a 2.1% market share, by patient revenue, in Chicago that year, far behind other major systems in the region like Advocate Health Care, Rush University Medical Center and Northwestern Medicine.
The acquisition is expected to be finalized in the first quarter of 2018, and the management team at MacNeal will continue to oversee its operations under Loyola Medicine, Loyola announced.
"Bringing MacNeal into the Loyola system allows us to expand our delivery system, add more providers and deliver exceptional care to a greater number of residents closer to their homes," Loyola University Health System President and CEO Larry M. Goldberg said.
MacNeal will operate as part of Loyola Medicine and will also be incorporated into Trinity Health, according to the announcement.
Tenet Healthcare has sought to divest some of its hospitals following financial troubles. Longtime CEO Trevor Fetter will step down next year, and board shakeups are also expected.
Tenet has faced legal troubles and financial issues since it paid out $514 million in a kickback settlement last summer. New charges against former employees in that case were filed in late September.
As Tenet looks at potential buyers for its portfolio, another major for-profit healthcare system, HCA, may have its eye on its organizations, analysts say. However, concerns with Tenet's debt load and the size of the portfolio could lead to issues for HCA.