SSM to replace SLU Hospital with $500 million investment
From The St. Louis Business Journal
AIM Circle of Elite Organizations member SSM Health said Tuesday it will spend $500 million to replace Saint Louis University Hospital within the next five years.
The facilities will include a replacement hospital and outpatient care center, and will be located in the “immediate vicinity of the current hospital” at 3660 Vista Ave.
SLU Hospital, built in 1932, on Tuesday officially became part of SSM Health. Saint Louis University said in June it would reacquire the hospital from Dallas-based Tenet Healthcare Corp. and contribute the facility to SSM Health in exchange for a minority financial interest and governance rights in SSM Health. Saint Louis University sold the hospital to Tenet in 1998.
SSM Health said Tuesday it would also make “immediate capital investments in the current facility…” SSM Health also operates Cardinal Glennon Children’s Medical Center, which is situated adjacent to SLU Hospital on Grand Avenue.
The 365-bed SLU Hospital, which will be led by Kate Becker, had net patient revenue of $350.9 million and $40.9 million of operating losses during the last 12 months for which data is available, according to Chris Rigg, a stock analyst who follows Tenet for Susquehanna Financial Group.