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: 287-bed Western Medical Center-Santa Ana; 172-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. Tenet now has agreements or other plans in place to divest 15 of 27 hospitals on a divestiture list announced in January. Integrated would gain its first hospitals in the deal.
Integrated announced a financing agreement with physician Kali Chaudhuri, 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. -- by Vince Galloro