Tenet Healthcare to Buy Daniel Freeman Hospitals
Tenet Healthcare Corp. has agreed to purchase Daniel Freeman Hospitals in Inglewood and Marina del Rey for $55 million, a move that would shift the hospitals from not-for-profit to for-profit status, the Los Angeles Times reports. The Times reports that the deal is a "relief for hospital administrators who have watched Daniel Freeman Hospitals steadily lose money for the last three years." But some community residents expressed concern that Tenet -- which owns Centinela Hospital Medical Center in Inglewood -- might close or scale back operations at Freeman's Inglewood facility to "avoid duplication" of services. Although Tenet spokesperson Harry Anderson said that Tenet has no intention of closing the ED at the Freeman hospital in Inglewood, he added that the company is "not necessarily promising that all services will remain exactly the same at all campuses" (Casillas, Los Angeles Times, 6/9). Anderson added that most of the proceeds from the sale will be used to pay off the hospitals' debts.
Although Tenet has "vowed" to continue Freeman's "charitable care for the indigent," a group of Freeman doctors opposing the sale has lobbied to purchase the hospitals and keep the facilities' not-for-profit status (AP/San Diego Union-Tribune, 6/9). The physicians, who joined forces with MedSECTOR, a financial and real estate consultant, had asked for more time to gather funds to make their bid, but the hospital chose to accept Tenet's bid first. MedSECTOR executive Garth Hogan said the group will still submit a bid within the next few weeks, before the sale goes to the state attorney general for approval (Los Angeles Times, 6/9).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.