AHERF bidder pulls $460 million offer

Article Abstract:

Vanguard Health Systems of Nashville, TN, withdrew its $460 million cash offer for Allegheny Health Education and Research Foundation's (AHERF's) eight bankrupt hospitals in Philadelphia, PA. Vanguard, which was the only party to make a formal bid for all eight hospitals, said it withdrew its bid because of declining admission rate at the hospitals and the cloudy future of the Allegheny University of the Health Sciences. The news was another unwelcome development for the hospitals' creditors, who in the most optimistic scenario only stand to get back 54 cents for every dollar owed, based on initial estimates.

Comment:

Withdraws $460 mil cash offer for all of Allegheny Health's 8 bankrupt hospitals in Philadelphia, PA

Asset sales & divestitures, Health Care, Health Care and Social Assistance, Medical care, Allegheny Health, Education and Research Foundation, Vanguard Health Systems

AGH's Philly deal fizzles

Article Abstract:

Nashville, TN-based Vanguard Health System, Inc. abandoned its agreement to buy six Allegheny Health Education & Research Foundation (AHERF) Philadelphia, PA, hospitals. AHERF and the for-profit health care concern said the $400-million hospital sale will not be pursued due to several basic issues that have become insurmountable barriers. Both parties did not elaborate on the issues which include the final sale price. The sale also would have helped the suffering parent foundation of Allegheny General and pay off the debts it accumulated in a Philadelphia, PA, expansion.

Comment:

Abandons a deal to buy six Philadelphia, PA, hospitals from Allegheny Health Education & Research Foundation

Vanguard Health Systems Inc.

AHERF ready to close deal for eastern assets

Article Abstract:

Tenet Healthcare Corp., a Santa Barbara, CA-based hospital chain, is acquiring eight bankrupt hospitals in Philadelphia, PA, from Allegheny Health Education and Research Foundation. The buyout deal is slated to be closed in the morning of Nov. 10, 1998, and will be marked by a celebration. The names of each hospital will be replaced reflecting the names of their respective communities plus the Tenet name to identify the entire network. Drexel University will help Tenet in operating the academic center of the eight hospitals.

Comment:

Is acquiring eight bankrupt hospitals in Philadelphia, PA, from Allegheny Health Education and Research Foundation

Tenet Healthcare Corp.