Fetter said that the Vanguard acquisition was to create synergies in the relatively stable hospital market as well as to capitalize on Vanguard's strength in specific geographies, such as Texas and Michigan.
"The transaction gives us the opportunity to create tremendous synergies that are very material to creating value," he said. Fetter also said that the Affordable Care Act—often referred to as "Obamacare"—will add incremental value to the synergies from the acquisition.
The deal to buy Vanguard was announced Monday after a unanimous vote from the boards of both companies to approve it. Tenet will pay $21 per share, a 70 percent premium to Vanguard Health's Friday closing price of $12.37.
The companies said Monday that the transaction also includes $2.5 billion in debt and value the entire deal at $4.3 billion.
"The capital markets have been very favorable for us," Fetter said, estimating that borrowing rates have never been lower for Tenet.
When asked whether this will be the company's last big deal, Fetter said, "No, I think this marks a turning point for the company in which we'll be more aggressive in acquisitions."
"This is the first big acquisition we've done in a very long time in acute care hospitals, but it will not be the last," he added. "I look forward to an expanded acquisition pipeline in the acute care business."