Tenet Healthcare Corporation
) is set to establish its foothold in Connecticut through its
latest partnership with Yale New Haven Health System - a leading
healthcare system in the region. Tenet is striving to extend its
Northeast presence through a big push into Connecticut.
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This collaboration aims at forming a comprehensive health care
delivery network in Connecticut by integrating the attributes of
the companies. The deal also intends to establish value-based
contractual relationships with employers and other health care
service entities to create a superior health care delivery
Both the organizations plan to increase their efficiency to cater
to the healthcare requirements of a larger part of the population
in Connecticut. To deliver high-quality care to patients, the
partnership will enhance the services provided by hospitals,
ambulatory care centers and physician practices by introducing
improved clinical technologies, increased economies of scale and
Connecticut faces a number of challenges in delivering health
care to its residents like any other state. These include
understanding patient needs, and coordination and provision of
superior quality healthcare at an affordable price. Through the
aforementioned deal, Tenet and Yale New Haven will be able to
address these issues and bring in an accessible and
patient-centric health care service on a large scale in
While Yale New Haven aims to tap the opportunities provided by
the changing healthcare environment and expand its business, the
entity lacks capital strength to do so. On the other hand, Tenet,
which has a strong financial position to support this agenda, is
new to the Connecticut market. Thus, combination of the strengths
of the two organizations is likely to prove beneficial to both
the companies in the long run. Not only will the deal help Tenet
establish a strong foothold in the Connecticut market but also
help the company to capitalize on its brand name. Going forward,
this should help the company provide its business process
solutions to more health care providers in Connecticut and thus
succeed in its goal of geographical expansion.
Tenet currently carries a Zacks Rank #5 (Strong Sell). Some
better-ranked stocks in the healthcare services space include
Brookdale Senior Living Inc.
Almost Family Inc.
). All three stocks carry a Zacks Rank #1 (Strong Buy).