Tenet Healthcare Corp. late last week signed a definitive agreement to sell Culver Union Hospital in Crawfordsville, Ind., to the Mishawaka, Ind.-based Sisters of St. Francis Health Services.
Sisters of St. Francis recently announced plans to merge with Ingalls Health System, a secular organization that operates 410-bed Ingalls Hospital in Harvey, Ill. The merged system will have seven hospitals, excluding 98-bed Culver Union.
Tenet earmarked 20 hospitals for sale, and Culver Union is the 12th for which a buyer has been found.
The hospital reported $3.7 million in net income on patient revenues of $40.1 million in 1997, the most recent year for which financial data were available from HCIA, a Baltimore-based healthcare information firm.
No financial terms were disclosed, but a source close to the negotiations said the Sisters agreed to pay more than $70 million for the facility. The transaction is expected to close within 60 days.
In Massachusetts, another Tenet facility, Saint Vincent Hospital, of Worcester, has struck an agreement to manage much smaller nearby Athol (Mass.) Memorial Hospital.
Athol Memorial reported a negligible net loss on $21.2 million in patient revenues in fiscal 1997, according to HCIA
Athol Memorial's board of trustees agreed to a six-month administrative management contract whereby Saint Vincent will manage but not own 33-bed Athol Memorial.
The board's decision came after consideration of an alternative proposal to merge Athol with Heywood Hospital, Gardner, Mass., and form closer ties to Worcester-based UMass Memorial Health Care (June 7, p. 30).
"The board of trustees looked at both proposals and voted to go with the Saint Vincent proposal because it was a management contract, and they could still have local control," said Nancy Adams, director of physician support services at Athol Memorial.
Tenet spokesman Harry Anderson said the local hospitals struck the deal, and Santa Barbara, Calif.-based Tenet does not plan to acquire Athol Memorial.