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Providence Health & Services announced on September 19 that it has finalized its acquisition of Tarzana Regional Medical Center, closing the $89 million transaction to purchase the hospital.
The newly renamed Providence Tarzana Medical Center is the fifth hospital in Los Angeles County operated by the not-for-profit health care system. It joins Providence Saint Joseph and Providence Holy Cross Medical Centers in the San Fernando Valley and two hospitals in the South Bay.
"We are thrilled that we were able to acquire this outstanding hospital and ensure that it will continue to provide vital and high-quality health care services to the communities of the west San Fernando Valley," said Arnold R. Schaffer, chief executive officer of Providence Health & Services, California. "At a time when hospitals around Los Angeles County are closing or on the verge of closing, our goal in acquiring Providence Tarzana Medical Center was to ensure that access to high quality and affordable health care services in the West Valley would be preserved and expanded."
A transition team has been in place to integrate Tarzana's business operations into the Providence systems, but employees and patients should not expect any major changes. Dale Surowitz, Chief Executive of Tarzana, will remain in that position.
"We're delighted to become a part of an organization like Providence that has a proven track record, not only as a quality health care system, but as a top employer," Surowitz said. "Our employees, patients, medical staff and the entire community are now confident that our tradition of providing excellent health care will continue. Being part of the Providence family will bring tremendous benefits to this hospital and to the patients we serve."
Added Schaffer, "We are extremely appreciative of the deep commitment to the hospital and the hard work of the 1,200 employees, physicians and volunteers who worked closely with us to ensure a smooth transition."
Providence announced on June 30 it had agreed to buy the 245-bed Tarzana facility from a subsidiary of Dallas-based Tenet Healthcare Corporation, which has divested many of its hospitals in California. Tarzana had been for sale for 4½ years and Providence was eager to complete the acquisition to ensure that health care services continued in the West Valley. Three local hospitals with a combined total of 446 beds have closed in the Valley in recent years.
"The Tarzana Neighborhood Council and its stakeholders are happy and relieved to see our hospital in the hands of such a professional and caring health care organization as Providence," said Leonard Shaffer, President of the Neighborhood Council's Board of Governors. "We are pleased to welcome Providence to Tarzana, and look forward to forging a productive, committed and active partnership throughout our community."
Working in partnership with the community, Providence plans to make significant financial investments to upgrade the 35-year-old Tarzana facility, buy state-of-the-art medical equipment and retrofit the medical center so that it meets state seismic requirements. Consistent with its commitment to expanding access to quality, affordable health care services for all, Providence will apply for the Tarzana hospital to become a Medi-Cal contracting hospital with the State of California. Other plans include adding a Spiritual Care Department to serve patients of all faiths, constructing a chapel and working closely with the hospital's community partners to assess its current and expanded role as a provider of significant community benefits.
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