Who is Adventist Health? Faith-based company taking over 2 SLO County hospitals
As two San Luis Obispo County hospitals prepare to change hands from Tenet Healthcare to Adventist Health, all services currently offered will remain as they are, a spokesperson for the faith-based healthcare company told The Tribune.
According to an email to The Tribune from Adventist Health corporate communication executive Japhet De Oliveira, the new owners of Sierra Vista Regional Medical Center in San Luis Obispo and Twin Cities Community Hospital in Templeton will not make changes to the availability of services such as reproductive healthcare, LGBTQ+ care or end-of-life care.
In the email, Adventist Health said its hospitals provide full-scope general reproductive services and gynecology services in line with federal and state laws.
“We firmly believe that decisions regarding reproductive care should be made by the patients and their healthcare providers,” De Oliveira said in the email. “We highly value and respect the expertise and judgment of our healthcare providers and trust them to make the best decisions for their patients based on their unique needs and circumstances.”
De Oliveira also said Adventist Health is “not in the business of interfering in the relationship between a patient and their provider” when providing care to LGBTQ+ clients.
“We respect, honor and trust our providers to make care decisions based on the individual needs of their patients and in accordance with their patient’s wishes,” De Oliveira said. “The services available at new markets and their associated clinics will not change.”
Who is Adventist Health?
According to its about page, Adventist Health began in 1866 with a healthcare ministry with the Seventh-day Adventist Church.
“Like our church forefathers, we promote wellness and treatment of the whole person — mind, body and spirit,” the website said. “However, we are separately owned and operated.”
The nonprofit company represents 26 hospitals and more than 400 clinics across the West Coast, with the nearest location to San Luis Obispo County in Hanford, according to the website.
It “does not participate under the ‘death with dignity’ legislation” in states it operates out of a respect for life, according to the website.
Since 2015, the state of California has permitted people over 19 diagnosed with a terminal illness and less than six months to live to end their lives under the California End of Life Option Act.
The company said “a referral may be provided” if a patient requests assistance under a death with dignity law.
Company buys SLO County hospitals for $550 million
According to a Tenet Healthcare release Thursday, the sale agreement between the providers is for approximately $550 million, with after-tax proceeds of approximately $450 million.
Tenet said the two purchased hospitals and their related options generated revenues of approximately $337 million in 2023, bringing home $38 million in adjusted earnings before interest, taxes, depreciation (EBITDA) — an alternate measure of profitability.
As a result, Tenet expects to see a pre-tax gain of approximately $275 million from the sale, according to the release.
In 2022, Adventist’s total revenue was $5.4 billion, with an EBITDA of $17 million, according to its website.
California Health Facilities Financing Authorities’ review of Adventist’s financial state in November 2022 found that the organization had been operating with a negative fiscal margin since 2019 as a result of ongoing losses, wildfires and the COVID-19 pandemic.
The review noted the company has since been focused upon expansion into more markets to help diversify its portfolio of hospitals and clinics and was working to secure its cash flow.
“We expect Adventist Health will meaningfully improve operations during the outlook period as volumes continue to rebound, pandemic-related impacts lessen and the planned operating improvements are implemented,” the review said.
As of March 2023, credit rating agency S&P Global Ratings listed Adventist Health as “stable” with an A- bond rating.
