Attorney General’s Office Holds Hearing on Tenet Bid to Purchase Not-for-Profit Hospitals
The state Office of the Attorney General held a "spirited" hearing yesterday at Inglewood City Hall to discuss the proposed sale of not-for-profit Daniel Freeman Hospitals to Tenet Healthcare Corp., the Los Angeles Times reports. In the proposed sale, Tenet would purchase the two hospitals, in Inglewood and Marina del Rey, for $55 million. The state attorney general must approve sales of not-for-profit hospitals to for-profit companies. Inglewood and Marina del Rey residents have expressed concerns that Tenet would sell the hospitals and land and use the money to "bolster its current health network." They have also raised concerns that Tenet might restrict services provided to low-income residents. However, Tenet spokesperson Harry Anderson said, "We agreed to maintain the hospital at the current level of charity care to the poor," adding, "Why would we invest $55 million just to close (the hospitals)? It doesn't make sense." Tenet owns 30 hospitals in Southern California. Daniel Freeman lost $40 million last year, and hospital administrators consider the proposed sale a "relief" after years of financial problems. Dr. Donald Henderson, a former chief of staff at the Daniel Freeman Memorial Hospital in Inglewood, said that the "sale must go through in order to save Daniel Freeman Hospital and the care it provides." The state attorney general's office will hold a second hearing on the proposed sale next month (Los Angeles Times, 10/19).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.