Steward Health Care System on Friday announced a deal with a Tennessee company that would make it the largest private for-profit hospital operator in the country.
Boston-based Steward said the merger with IASIS Healthcare of Franklin, Tenn., would create a network of 36 hospitals across 10 states, with revenues of nearly $8 billion. The deal with IASIS follows Steward’s first out-of-state acquisition — completed earlier this month — of eight hospitals in Ohio, Pennsylvania, and Florida for $304 million.
IASIS runs 18 hospitals in Utah, Arizona, Colorado, Texas, Arkansas, and Louisiana. The merger, subject to regulatory approvals, is expected to close in the third quarter of 2017. Terms were not disclosed, but Bloomberg and the Wall Street Journal — citing people familiar with the transaction — valued the deal at about $2 billion.