(St. Louis Public Radio) – Saint Louis University Hospital will soon come under the ownership of SSM Health, one of the largest not-for-profit Catholic health care systems in the country.
According to press releases, the deal is a three-way agreement. SLU Hospital’s current owner, the for-profit Tenet Healthcare Corporation, will sell the 356-bed facility for an estimated $150 million (before taxes) to Saint Louis University. In a separate transaction, the school will transfer the hospital to SSM Health but retain a minority share, which includes financial interest and partial governance rights. As a matter of practice, teaching hospitals like SLU employ physicians for the hospitals with which they are affiliated.
According to Tenet, the deal is expected to be finalized during the third quarter of 2015, pending regulatory approval. Tenet purchased the hospital in 1998. In 2012, SLU Hospital yielded a nearly $51 million loss for the system, according to a review by the St. Louis Area Business Health Coalition.
SSM Health owns six hospitals in the St. Louis region, including Cardinal Glennon Children’s Medical Center, which is located next to SLU Hospital.