April 2, 2024
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Adventist, Sutter make SLO County moves

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Adventist Health in Simi Valley. Adventist just bought two hospitals in San Luis Obispo County on Feb. 29. (courtesy photo)

Some of the biggest names in San Luis Obispo County health care are switching owners as both Adventist Health and Sutter Health expand their presence in the region.

On Feb. 29, Adventist Health, a non-profit health group with 26 hospitals across the state, announced it has purchased two San Luis Obispo County hospitals from Tenet Healthcare for $550 million.

Just one day later on March 1, Sutter Health, which last year acquired Sansum Clinic in Santa Barbara, announced a move into radiation oncology in SLO county as it fills in its Central Coast presence.

In the Adventist acquisition, the two hospitals include Tenet Health’s flagship Sierra Vista Regional Medical Center in San Luis Obispo and the smaller Twin Cities Community Hospital in Templeton.

“We are excited to increase our footprint to the beautiful Central Coast of California,” Kerry L. Heinrich, president and CEO of Adventist Health, said in a press release. 

“We are committed to partnering with Sierra Vista Regional Medical Center and Twin Cities Community Hospital to expand services, and we will work together to serve our mission of increasing the availability of care for communities in this region.”

The agreement includes related physician practices and imaging centers. 

According to the release, the SLO County-based hospitals generated revenues of approximately $337 million in 2023, pre-tax income of approximately $25 million and adjusted EBITDA of approximately $38 million, excluding depreciation and amortization expense of approximately $13 million. Tenet estimates recording a pre-tax book gain of approximately $275 million and the deal is expected to close late this spring, the release said.

Sutter Health expanded its Central Coast presence after the nonprofit purchased five GenesisCare radiation oncology centers, including two in San Luis Obispo County.

The Genesis Care centers are in San Luis Obispo and Templeton. The other three purchased by Sutter are located in Modesto, Santa Cruz and Stockton.

Sutter will keep the majority of existing GenesisCare team members at their facilities, according to the release.

Financial figures were not disclosed, but Sutter said the purchase will help it “keep high-quality cancer services rooted in California’s Central Coast, Central Valley and Silicon Valley.”

“Sutter Health is committed to providing the highest quality care throughout the communities we serve. We know how important it is for specialty services like cancer care to be offered close to home so patients can stay on track with their treatments. Keeping continued cancer care accessible in these communities was a driving force for Sutter to acquire these care centers. We are excited for the promise these centers hold for existing patients and for those who may need this type of care in the future,” Warner Thomas, president and CEO of Sutter Health, said in a press release.

Sutter acquired Santa Barbara-based Sansum and all its facilities in 2023 to develop a presence on the Central Coast.

email: jmercado@pacbiztimes.com