Sharp HealthCare, a San Diego-based healthcare system, is negotiating to sell its 91-bed hospital in Murrieta, Calif., to Tenet Healthcare Corp.
The deal is expected to be valued at $29 million, including working capital, according to Sharp. Its proceeds will be used to retire the hospital's $42 million in liabilities, including $14 million in bond debt. Sharp solicited a request for proposals for the hospital in May.
In a statement, Sharp said a letter of intent to sell Sharp HealthCare Murrieta to Santa Barbara, Calif.-based Tenet is expected to be approved within 30 days, and the deal would be submitted to the state attorney general in 90 to 120 days.
The attorney general must review and approve the deal under California's new not-for-profit hospital conversion law. The review ensures fair market value when a not-for-profit hospital is purchased by a for-profit company. Sharp is not-for-profit; Tenet is for-profit.
The sale will leave Sharp with five hospitals and give Tenet 44 acute-care hospitals in California.