Tenet, Catholic Healthcare Set Partnership

Hoping to attract more HMO patients and boost their market share, two of California’s biggest hospital operators, Tenet Healthcare Corp. and Catholic Healthcare West, said they plan to form a joint venture that would include formation of a health-care network to be called the Central Valley Healthcare System. The deal would link four hospitals owned by Catholic Healthcare West and two Tenet-owned hospitals in the northern San Joaquin Valley. Although the deal is not a merger and does not involve any asset sales, it is noteworthy because some leading Catholic church officials have taken a stand against the proliferation of for-profit corporations in health care. CHW is a not-for-profit hospital chain, and Tenet is the nation’s second-largest for-profit hospital operator. Besides pursuing managed-care contracts, the two firms plan to provide management services to other hospitals and to share information on medical quality. “This partnership will enable us to pursue our common goal of enhancing access to quality medical services,” said Edward G. Schroeder, chief executive of CHW’s St. Joseph’s Regional Health System.