HealthSouth Corp., Birmingham, Ala., said it has begun foreclosure on a suburban Birmingham hospital whose owner owes the rehabilitation giant more than $42 million. The company has managed 150-bed HealthSouth Metro West Hospital since 1999, when it loaned the city of Fairfield $10 million to purchase the hospital from Tenet Healthcare Corp., Santa Barbara, Calif., which planned to close it if no buyer materialized (Oct. 18, 1999, p. 26). Operating losses and loans for capital improvements have swelled the authority's debt, HealthSouth spokesman Andy Brimmer said. The company plans to keep operating the hospital, but it began foreclosure proceedings because the Fairfield Healthcare Authority, the city authority that owns the hospital, said it could not repay HealthSouth, Brimmer said. Larry Langford, president of the authority, could not immediately be reached for comment. -- by Vince Galloro
HealthSouth begins foreclosure on Ala. hospital
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