Hospital operator Tenet Healthcare said Tuesday it completed its $1.8 billion acquisition of competitor Vanguard Health Systems.
Tenet paid $21 per share for Vanguard, and the companies valued the deal at $4.3 billion when Vanguard's debt was included.
Dallas-based Tenet now runs 77 hospitals, 173 outpatient centers, five health plans and six accountable care organizations in 10 states. It also runs Conifer Health Solutions, which offers business process services to health care providers. Tenet said an additional hospital is being built in New Braunfels, Texas. It will retain some operations in Nashville, the site of Vanguard's headquarters.
The deal expands Tenet's reach into new markets as millions of patients start to gain insurance coverage through the Affordable Care Act, the health care law that is starting to enroll Americans on Tuesday. The overhaul is expected to help hospitals by reducing the number of uninsured patients they treat. Starting in January, the overhaul will provide income-based tax credits to help people buy coverage, and the state-and-federally funded Medicaid program will expand its coverage in a number of states.
Tenet paid a 70-percent premium to Vanguard's stock price before the offer was made public.
Shares of Tenet Healthcare Corp. closed at $41.19 on Monday, up 27 percent since the start of the year.