Tenet Healthcare Corp., Santa Barbara, Calif., said it is selling four hospitals in Orange County, Calif., to Integrated Healthcare Holdings, Costa Mesa, Calif.
Integrated, a publicly traded, investor-owned firm formed earlier this year, said it will pay $70 million for the hospitals: 280-bed Western Medical Center-Santa Ana (Calif.); 188-bed Western Medical Center-Anaheim; 114-bed Chapman Medical Center, Orange; and 178-bed Coastal Communities Hospital, Santa Ana.
The companies expect the deal to close by Nov. 30. Integrated would gain its first hospitals in the deal and announced a financing agreement with Kali Chaudhuri, M.D., who will invest $500,000 in the company and loan it $10 million. Chaudhuri also will retain an option to acquire the former Tenet real estate for $5 million and the assumption of an unspecified amount of debt.
Chaudhuri owned KPC Medical Management, which purchased a string of Southern California clinics from MedPartners but went bankrupt in 2000.
Tenet now has agreements or other plans in place to divest 15 of 27 hospitals on a divestiture list announced in January.