SHARP HEALTHCARE: SELLS SOUTHERN CALIFORNIA HOSPITAL

      San Diego-based Sharp HealthCare announced Tuesday that it
 is selling its Murrieta hospital in southern California to Tenet
 HealthSystems for $29 million, San Diego 
 Union-Tribune reports.  "Ironically," Sharp officials said the
 sale "was driven by growing demand for hospital beds in the
 Murrieta area, in contrast to shrinking demand in San Diego." 
 San Diego Union-Tribune notes that "meeting the demands of
 Murrieta growth requires additional investment and borrowing
 capital that would apparently exacerbate problems for Sharp." 
 Sharp CEO Michael Murphy said, "It was apparent to the board that
 the best interests of both the hospital and the system would be
 served by a transaction that would assure Murrieta the resources
 necessary for growth without additional indebtedness to the Sharp
 system."  The $29 million sale price "falls below the $42 million
 in liabilities listed" for Murrieta.
      NO MISTAKES THIS TIME
      San Diego Union-Tribune notes that the Murrieta sale comes
 on the heels of Sharp's failed joint venture with Columbia/HCA
 Healthcare Corp. (see AHL 2/24), which collapsed in the face of
 regulatory opposition from California Attorney General Dan
 Lungren (R).  The attorney general must approve the Murrieta
 deal, but Sharp officials said they have "remained in
 communication" with Lungren's office and intend to "work very
 closely" with the attorney general on the sale (Rose, 9/24).