TARZANA, Calif., July 1 Providence Health & Services California Region announced today that it has signed a definitive agreement with Tenet Healthcare Corporation to acquire the Tarzana campus of Encino Tarzana Regional Medical Center for $89 million.
The acquisition, which is scheduled to be finalized in the next 60 days, will enable Providence to continue the hospital's tradition of providing quality and affordable health care services for the community it serves. Providence currently operates four hospitals in Los Angeles County, with two in the San Fernando Valley - Providence Saint Joseph Medical Center in Burbank and Providence Holy Cross Medical Center in Mission Hills.
"Providence Health & Services has just guaranteed that the future of this hospital and health care services in our community will be secure," said Lee Alpert, Chairman of the Board of Directors for the medical center.
Working in partnership with the community, Providence will be investing capital to upgrade the Tarzana facility, buy state-of-the-art medical equipment and retrofit the medical center so that it meets state seismic requirements.
"I'm extremely pleased that Providence has made a commitment to make a substantial financial re-investment in our hospital so that we can continue providing excellent medical care to this community for decades to come," Alpert said.
Providence will also work closely with Tenet and the hospital's staff to ensure that health care services at the 245-bed Tarzana campus run smoothly during the transition period and after the transaction is finalized later this summer. Both organizations will work toward a seamless transition for patients, employees and physicians. Providence will retain the hospital's employees, who are known for their strong clinical skills and compassionate service. The current labor unions in place at the hospital will continue to be the collective bargaining representatives for these employees.
"The Tarzana campus, its employees and its medical staff have a reputation for providing quality and compassionate health care, which we will be proud to continue," said Arnold R. Schaffer, Chief Executive, Providence Health & Services California Region. "Continuing and strengthening the services provided at this hospital are vital for those living and working in Tarzana and surrounding communities. The medical center is critical to the entire San Fernando Valley region, which has seen several recent hospital closures that have reduced access to affordable, high-quality medical care."
Three hospitals in the Valley have closed in the past five years, resulting in a loss of more than 400 patient beds and two emergency departments. The closure of these facilities has had a major impact on other Valley hospitals, many of which have experienced significant increases in patient volume and emergency department waiting times as a result. Consistent with its commitment to expanding access to quality, affordable health care services for all, Providence will apply for the Tarzana campus to become a Medi-Cal contracting hospital with the State of California.
As a not-for-profit health care system, Providence will continue its commitment to providing millions of dollars in community benefit and charity care services every year within the communities it serves. Last year, Providence provided more than $40 million in community benefit to the San Fernando and Santa Clarita Valleys, as well as more than $62 million in community benefit throughout Los Angeles County.
Much of this outreach was focused in Tarzana and surrounding communities, including the senior peer counseling, Latino health promoters, violence prevention outreach and tattoo removal programs. Monthly health lectures and mall-walking programs for seniors also are pr