Tenet Confirms Acquisition Talks with Australia’s Healthscope Hospital Management Provider
Posted Jun 01 2010 2:41pm
Tenet has been doing some different things today, such as putting a medical clinic in a bank in Florida for one. In January they announced the roll out of Cerner medical records products being implemented along with their own MED3000 group products that give hospitals a line into business intelligence.
The Tenet income was reported down 51% for the first quarter of the year when compared to the same last year, so perhaps with this acquisition new sources of revenue are in the ball game? Admissions have been down as well by over 5% at some of their facilities.
Healthscope also have some extensive veterinary interest too, and we know that is all “cash” business. BD
“Healthscope is an Australian company which also operates private hospitals, a pathology business and medical centres. The company is headquartered in Melbourne in St. Kilda Road, Melbourne. The company operates medical/surgical hospitals as well as a number of psychiatric and rehabilitation clinics. It is one of Australia's largest human, veterinary, commercial and molecular pathology providers, and operates medical centres and specialised skin cancer clinics around the country.”
From the Healthscope website:
“Healthscope is a leading private health care provider within Australia that uniquely operates in every State and Territory, as well as in Asia. Our reach of facilities around the country firmly places Healthscope as the second largest private hospital provider operating 44 private hospitals. The company includes a leading pathology business with facilities in Australia, New Zealand, Singapore and Malaysia; a growing medical centres division with over 45 clinics; and a diagnostic imaging division centred in major hospitals.”
This looks to be a very good size potential acquisition. BD
Tenet Healthcare Corporation today confirmed it is in "preliminary discussions" with Healthscope about acquiring the second-largest private hospital company in Australia.
Dallas-based Tenet said in a media release that it usually does not comment on speculation on possible acquisitions, but did so this time because of the recent volatility on Tenet stock.
Healthscope owns and operates 43 hospitals representing approximately 15% of Australia's private hospital market, and also operates the country's third-largest pathology business. Healthscope had an EBITDA margin of approximately 13.8% in 2009, and 11.1% revenue growth, Tenet said.