Tenet moves to ink 30-year lease with California hospital: What ASCs need to know

Tenet Healthcare, parent company of ASC giant United Surgical Partners International, is one step closer to securing a 30-year lease for the 387-bed Desert Regional Medical Center in Palm Springs, Calif., the Desert Sun reported.

The board for Desert Healthcare District and Foundation voted May 28 to move forward with Tenet's proposal. 

Here are five things to know:

1. The board's district staff, its legal counsel and a consultant will work with Tenet in refining details into a contract, which will likely come back to the board for approval in July, Will Dean, director of communications and marketing for the district, told Becker's

2. Pending board approval on an adequate timeline, it can develop a ballot measure by the Aug. 9 deadline for the lease to go before voters in November. With voter approval, Tenet and the district would enter into the lease agreement beginning  May 31, 2027, and ending in May 2057.

3. The current proposal would give Tenet the option to acquire the hospital at the end of the lease — Tenet would pay the district roughly $650 million over 30 years and agree to maintain Desert Regional in compliance with regulatory standards, among other provisions.

4. So far this year, Tenet has been on a hospital sell-off spree in California, closing on two major deals selling hospitals in California. The strategy is aligned with Tenet's focus on USPI to spur growth. 

5. On March 29, Tenet finalized an agreement to sell two hospitals to Roseville, Calif.-based Adventist Health for $550 million, or after-tax proceeds of around $450 million. Tenet also finalized the $975 million sale of four hospitals and two ASCs in Southern California to Orange, Calif.-based UCI Health.

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