■Adventist Health purchased two Central Coast hospitals for $550 million.

■The purchase expands Adventist’s footprint, giving them the biggest hospitals in the region.

■Seller Tenet Healthcare has been selling hospitals across the nation.

Nearly a month after a failed offer to take over operations of Madera Hospital, provider Adventist Health purchased two hospitals on the Central Coast, expanding their footprint.

Roseville-based Adventist Health expects to complete its purchase of Sierra Vista Regional Medical Center in San Luis Obispo and Twin Cities Community Hospital in Templeton by spring. The sale includes physician practices and imaging centers.

The purchase of the sister hospitals marks Adventist Health’s first venture into the Central Coast.

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

Hospital Purchase Gives Adventist Two Largest Hospitals in San Luis Obispo County

The 162-bed Sierra Vista Regional Medical Center and 122-bed Twin Cities Community Hospital make up the two largest hospitals in San Luis Obispo County.

Dignity Health operates the 67-bed Arroyo Grande Community Hospital in that city and the 98-bed French Hospital Medical Center in San Luis Obispo.

Adventist purchased the two hospitals for $550 million, according to Business Wire.

In 2023, the two hospitals and related physician practices generated $337 million in revenue and pre-tax income of approximately $38 million.

Adventist Health is partnering with Tenet subsidiary Conifer Health Solutions to offer revenue management for the hospitals.

In February, Adventist Health submitted an offer to take over operations of the closed Madera Community Hospital in a joint partnership with UCSF Health.

However, a bankruptcy judge accepted an offer from American Advanced Management to operate Madera Community.

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Tenet Healthcare Selling Assets Nationwide

The sale of the hospitals comes as Dallas-based Tenet Healthcare has been selling hospitals in California and on the East Coast, according to Becker’s ASC Review.

Tenet announced in a February investor call it was selling its Pacific Coast Network to Orange County-based UCI Health. The network also sold three hospitals from a subsidiary in Winston-Salem, North Carolina.

Tenet Healthcare operates 648 facilities across the nation.

Investment website Seeking Alpha said Tenet’s divestment reduces the company’s leverage and improved its valuation after a “turbulent past with high debt and low margins.”