Tenet Will Sell Four Hospitals in Arkansas to Triad Hospitals
Tenet Healthcare, the second-largest for-profit hospital chain in the nation, yesterday announced it had agreed to sell four hospitals in Arkansas to Triad Hospitals for $134 million in cash, the Los Angeles Times reports (Vrana, Los Angeles Times, 9/3). The announcement follows an announcement last month in which Tenet made public its plans to sell five hospitals in Florida, Missouri and Tennessee to Health Management Associates for $550 million. In March, Tenet officials announced plans to sell, close or decrease operations at 14 of the 114 hospitals owned by the company, as well as eliminate jobs and reduce costs, to help offset an expected reduction in Medicare reimbursements and improve shareholder confidence (California Healthline, 8/8). Under the deal, Triad would pay $134 million and assume $8 million in Tenet's debt in exchange for the 193-bed Central Arkansas Hospital in Searcy; the 170-bed St. Mary's Regional Medical Center in Russellville; the 166-bed National Park Medical Center in Hot Springs; and the 104-bed Regional Medical Center of Northeast Arkansas in Jonesboro. Triad officials said they expect the four hospitals to generate $250 million in revenue in 2003. Triad officials said they expect the deal, which requires regulatory approval, to be completed in the fourth quarter of 2003 (AP/Memphis Commercial Appeal, 9/3).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.