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  5. Tenet’s San Ramon Regional Medical Center Announces Joint Venture with John Muir Health

Tenet’s San Ramon Regional Medical Center Announces Joint Venture with John Muir Health


DALLAS - January 24, 2013 - Tenet Healthcare Corporation (NYSE: THC) and John Muir Health today announced the creation of a joint venture partnership between San Ramon Regional Medical Center, a 123-bed acute care hospital in San Ramon, Calif. and John Muir Health, based in Walnut Creek, Calif. John Muir Health is a not-for-profit integrated system of doctors, hospitals and other healthcare services in the San Francisco Bay area.

Through this partnership, John Muir Health will invest approximately $100 million to acquire a 49 percent ownership interest in San Ramon Regional Medical Center, and together, the two organizations will expand and improve the efficiency and coordination of care in the TriValley area and nearby communities, including San Ramon. This transaction is expected to close on or before March 31, 2013 and is subject to customary approvals and other closing conditions. John Muir Health and Tenet will also jointly develop outpatient services, such as Ambulatory Care Centers and other projects to be determined, in the Tri-Valley area and nearby communities, including San Ramon.

The new partnership will build on the strengths of both organizations, increase patient access to a superior network of services and align outpatient and physician-focused healthcare in the region. New hospital and ambulatory care governing boards will be selected by both organizations. While the two organizations will work together to further develop San Ramon Regional Medical Center and future outpatient projects in the area, John Muir Health's existing hospitals, facilities and other assets are not included in the partnership agreement.

"We are proud to partner with such a well-respected healthcare provider," said Gary Sloan, chief executive officer of San Ramon Regional Medical Center. "John Muir Health has a long and valued reputation in the Bay area and is a great strategic partner for our hospital. Through our shared values and commitment to deliver outstanding patient care, we are creating a comprehensive, integrated healthcare network."

"This is a partnership between two leading healthcare organizations that share a commitment to providing patients with expanded choices for high-quality, patient-centered care, close to home," said Cal Knight, president and CEO of John Muir Health. "In the midst of healthcare reform and a very competitive local environment, we will offer better, more accessible and integrated care together than we can apart. Together, we will pursue new and innovative ways to improve patient care, access to services and affordability."

John Muir Health is a highly-regarded, not-for-profit system of doctors, hospitals and other services. Anchored by two of the largest medical centers in Contra Costa County, John Muir Medical Center, Walnut Creek and John Muir Medical Center, Concord, with a total of 885 licensed beds, John Muir Health also owns a not-for-profit medical foundation that contracts with more than 925 physicians. San Ramon Regional Medical Center has provided award-winning care to its community since 1990, and has served as a leader in technological care advancements, including being the first hospital on the West Coast to offer the da Vinci™ Surgical System and one of the first to offer an advanced, minimallyinvasive breast biopsy system.

"This partnership with John Muir Health exemplifies our strategy of enhancing and expanding the integrated healthcare services we offer our patients in California. We continually evaluate collaboration opportunities with healthcare providers, physician groups and others in our markets to maximize effectiveness, reduce costs and integrate patient care coordination across the care continuum," said Jeff Koury, senior vice president of operations for Tenet's California region.

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