TENET: Purchases Murrieta Hospital From Sharp HealthCare
Tenet Healthcare Corp. agreed to purchase Sharp HealthCare's Murrieta hospital, but it will not assume the facility's $42 million debt. Modern Healthcare reports that Tenet will pay "$23.2 million in cash and additional compensation for inventory and future receivables for the 91-bed hospital," but none of the $14 million in tax-free bond liability and $9 million in cash advances from Sharp. Last year the hospital was profitable -- "earning $1.5 million on patient revenues of $33.7 million" -- but Sharp officials said they could not afford the "$70 million in capital improvements [needed] to meet future demands." Michael Murphy, CEO of Sharp, said, "We felt [the sale] was the best deal we could make. It gives the community the type of hospital it deserves." Terms of the deal require Tenet to form "a 12-member governing board for the hospital, with half the trustees picked from the old hospital board and the remainder drawn from local community members and physicians." The sale still needs the state attorney general's approval, which is expected some time by mid-December (9/7 issue).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.