US-based WellStar Health System is reportedly engaged in negotiations with Dallas-based Tenet Healthcare to purchase its five hospitals in Georgia.
The deal has an estimated value of between $300m and $500m, according to investment bankers, reported Atlanta Business Chronicle.
The two organisations issued a statement confirming the commencement of ‘exclusive, non-binding discussions’ about a potential sale of Tenet’s Atlanta-area hospitals and other facilities to WellStar, reported Georgia Health News.
The statement said: "This is to ensure that these hospitals and facilities are best-positioned to meet the needs of their communities and continue delivering high-quality healthcare for many years to come."
The hospitals expected to be included in the deal are Atlanta Medical Centre, North Fulton Hospital, South Fulton Medical Centre, Spalding Regional Medical Center, and Sylvan Grove Hospital.
Piedmont Healthcare has also reportedly expressed its interest in buying Tenet’s Georgia hospitals.
WellStar Health System includes five hospitals, seven urgent care centres, 16 satellite diagnostic imaging centres, two inpatient hospices and one adult congregate living facility, and a skilled nursing unit.
With around 12,500 employees, WellStar is said to provide $200m in unreimbursed care to the community.
This month, Tenet Healthcare signed an agreement with Dignity Health and Ascension to establish a partnership to own and operate Tucson-based Carondelet Health Network in Arizona, US.
Under the deal, Tenet will manage the operations of three hospitals, related physician practises, outpatient and ambulatory services and other affiliated businesses in Tucson and Nogales, Arizona.