Winona Memorial Hospital, Indianapolis, sold by Tenet Healthcare Corp. two years ago, will be sold again -- this time to physicians on its medical staff.
A group of about 20 physicians and other local investors has signed a letter of intent to buy the 128-bed hospital for undisclosed terms from Leland Medical Centers, Plano, Texas, a for-profit company that owns four other hospitals in partnership with physicians.
Leland became Winona Memorial's fourth owner since 1984, when it bought the facility from Tenet after a failed buyout effort by the hospital's medical staff. Robert Mehl Jr., M.D., a physician who led the first, unsuccessful buyout attempt, also led the second, successful attempt. Neither Mehl nor Leland officials could be reached for comment at deadline.
In October 2003, the hospital's medical committee resigned over concerns about patient safety and inadequate funding. In a written statement, the physicians said they would return to their medical committee posts, which have been vacant since the resignations.
The deal is expected to close within 30 days.
Winona Memorial had a $7.8 million operating loss on patient revenue of $67.3 million in 2002 and a $5.6 million operating loss on patient revenue of $71 million in 2001, according to the American Hospital Directory.