Tenet Healthcare To Sell Four Los Angeles-Area Hospitals to AHMC for $100 Million
Tenet Healthcare will sell four of its Los Angeles-area hospitals to health care firm AHMC for $100 million, Tenet officials announced Monday, the Los Angeles Times reports (Girion, Los Angeles Times, 7/20). Tenet, the nation's second-largest for-profit hospital chain, in late January announced plans to sell 27 of its 100 hospitals. The company began downsizing last year when it announced plans to sell or divest 14 facilities as part of an ongoing cost-cutting effort. However, unlike last year's sales, which focused largely on noncore markets, the hospitals in the upcoming sales will include several in larger markets, including 19 in California. Of those 19, all but one are located in Los Angeles or Orange counties. The hospitals that will be sold are the company's poorly performing facilities that are expected to post significant losses this year. Tenet said it expects to net $600 million from the sales (California Healthline, 4/5).
AHMC, a firm owned by family practitioner Dr. Jonathan Wu, currently manages Alhambra Hospital Medical Center and Doctors' Hospital Medical Center in Montclair. The four hospitals that Tenet is selling are 210-bed Garfield Medical Center and 101-bed Monterey Park Hospital in Monterey Park, 181-bed Whittier Hospital Medical Center and 117-bed Greater El Monte Community Hospital (Los Angeles Times, 7/20). The sale, expected to be completed by Sept. 30, is subject to regulatory approval (Rapaport, Sacramento Bee, 7/20).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.