Tenet Healthcare Corp., the nation's second-largest hospital chain, lost its bid to acquire Baptist Health System, a financially troubled nonprofit organization that operates five hospitals in San Antonio.
Santa Barbara-based Tenet had partnered with Christus Santa Rosa Health Care to take control of the chain, which would have expanded Tenet's holdings in Texas to 19 hospitals. But Baptist Health said it chose a proposal by Vanguard Health Systems Inc., a for-profit company based in Nashville with 10 hospitals, including three in Orange County.
Tenet said it would pursue other opportunities in south Texas. Terms of the proposals were not disclosed.
Tenet's stock fell $2.70 to $75.40 on the NYSE.