Tenet Healthcare Corp.'s proposed $36 million acquisition of Landmark Health System, Woonsocket, R.I., was called off Friday after more than a year of being snarled in the regulatory red tape of a tough state law on hospital conversions. The two parties signed a definitive agreement in September 1997, and the deal has been under review by the state attorney general's office since February 1998. William Bradley, a Tenet senior vice president, said the transaction faced "still more months of scrutiny with no assurance of final approval." The conversion law, which gives the state broad powers to regulate change of ownership and charitable assets of not-for-profit hospitals, has altered or killed several other hospital acquisitions in the past year (Jan. 11, p. 36).
Floyd Loop, M.D., the Cleveland Clinic Foundation's chairman and chief executive officer, late last week was named to the board of Tenet. Company officials said Loop, 62, will help the hospital chain with patient-care and clinical issues. Tenet and the Cleveland Clinic have a joint venture to build a 150-bed hospital in Weston, Fla. Loop becomes Tenet's 10th director.
HCFA will tighten its requirements for determining and documenting the medical necessity of ambulance transport of Medicare beneficiaries. The new regulation, published Friday and effective in late February, also requires physician certification for nonemergency ambulance transport of Medicare beneficiaries and requires development of a fee schedule for ambulance services.
Doctors Community Healthcare, Scottsdale, Ariz., said Friday it's selling 242-bed Grant Hospital, one of two Chicago hospitals it bought last year for $63 million from Nashville-based Columbia/HCA Healthcare Corp. Doctors Community said it signed a letter of intent to sell the hospital to 213-bed Edgewater Medical Center, Chicago, for an undisclosed sum.
PHP Healthcare Corp. removed former President and Chief Executive Officer Jack Mazur as an officer and employee of the Reston, Va.-based physician practice management company. In a statement issued Friday, the beleaguered company said Mazur was terminated "for cause." Mazur, who also resigned as a director, cited no cause for the split and reserves the right to sue. PHP filed for bankruptcy in November.
Shareholders of both companies late last week gave the go-ahead for Cardinal Health, a Dublin, Ohio-based drug distributor, to purchase Allegiance Corp., a McGaw Park, Ill.-based medical supplies company. The transaction, announced last October, is valued at about $6 billion, including $5.2 billion in stock and $800 million in debt. Regulators have approved the deal, which is expected to close in early February.
Thomas Singleton, 50, will join 11-hospital New American Healthcare Corp. Feb. 1 as president and chief operating officer, according to the Nashville-based company. Singleton most recently was president of Intensive Resource Group, a Quorum Health Group subsidiary. Robert Martin, New American's board chairman and chief executive officer, had held the president's post.
Where someone lives affects the waiting period for an organ transplant, according to a report released Friday by HHS. The report found some patients in New York City waited 511 days for a liver transplant, while others waited 56 days in northern New Jersey and 46 days in Iowa. The report was prepared by the Richmond, Va.-based United Network for Organ Sharing.
Vencor Chairman and Chief Executive Officer W. Bruce Lunsford, 51, resigned Friday. He will be replaced by chief operating officer Edward Kuntz, 53, who joined the Louisville, Ky.-based long-term-care company in November. Vencor didn't disclose the reason for the change in leadership. Lunsford is a cofounder of Vencor and has served as its chairman and CEO since the company's inception in 1985.