By Dan Haley
Using a measure reportedly common in assessing the buying and selling of hospitals, Crain's reported Thursday that the sale of West Suburban Hospital by Vanguard Health Systems to a Texas-based health system put a value on the Oak Park hospital of $143.2 million.
Tenet Healthcare is spending $4.3 billion to acquire all of Nashville-based Vanguard's assets. Chicago has been a very small market for Vanguard with just four hospitals in its group. In addition to West Sub, Vanguard owns Westlake Hospital in Melrose Park, MacNeal Hospital in Berwyn and Weiss Memorial on Chicago's North Side.
The sale of Vanguard to Tenet awaits state and federal regulatory approval.
Crain's reported that on a per-bed basis Tenet is buying Vanguard for an average cost of $582,000 per medical bed. That price is notably higher than median bed prices recorded for such transactions in 2012. A spokesman for Tenet quoted by Crain's said "Tenet sees value for the purchase price for all of Vanguard, not just the four hospitals in Illinois – and this value is reflected in the entirety of the transaction."
West Suburban has 234 beds. Crain's reports West Sub's 2012 net patient revenue at $163.5 million.