The agreement includes Saint Francis Hospital in Bartlett and also Memphis, along with associated physician practices and six MedPost urgent care centres.
Methodist Le Bonheur expects the acquisition to bolster clinical expertise across its primary, acute and speciality care networks while boosting care for patients with chronic and complex diseases.
In addition, the deal will expedite the creation of Methodist Cancer Institute to deliver care and cancer treatment, as well as facilitate investment in medical technologies and new healthcare strategies.
Methodist Le Bonheur also intends to leverage the transaction to develop policies for better health outcomes and provide more charity care and healthcare educational programmes.
Methodist Le Bonheur Healthcare president and CEO Michael Ugwueke said: “Consistent with our mission, the addition of Saint Francis hospitals will increase access to high quality healthcare, expand services and enhance the delivery of care to improve the overall health of the communities we serve.
“We look forward to creating a more dynamic team of physicians, nurses and staff dedicated to delivering compassionate high-quality care to anyone who walks through our doors, regardless of their ability to pay.
The acquisition, subject to regulatory approvals and customary closing conditions, is expected to close next year.
After the completion of the transaction, Tenet unit Conifer Health Solutions will continue to offer revenue cycle management services to the Saint Francis Hospitals.
Tenet Healthcare operates 65 hospitals and nearly 500 additional healthcare facilities, including ambulatory surgery centres, surgical hospitals, urgent care and imaging centres, and clinics.