SHARP HEALTHCARE: SELLS SOUTHERN CALIFORNIA HOSPITAL
San Diego-based Sharp HealthCare announced Tuesday that itThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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).