Tenet Healthcare Corp., Santa Barbara, Calif., said it has reached a definitive agreement to sell two St. Louis hospitals on its divestiture list to a new for-profit company founded by Tom Reardon, former chief executive officer of the turnaround firm Cambio Health Solutions. The deal is expected to close by Nov. 30 pending regulatory approvals. Tenet said its after-tax proceeds, including liquidation of working capital, would be $42 million, but the purchase price was not disclosed. Tenet now has sold or has definitive agreements to sell 20 of 27 hospitals on a January divestiture list. When Tenet completes its planned divestitures, the company will own or operate 69 hospitals.
Reardon said his new company, Argilla Healthcare, will keep current management at the two hospitals -- 450-bed Forest Park Hospital and two-campus St. Alexius Hospital -- and outsource some functions, such as managed-care contracting and billing and collections, to for-profit Doctors Community Healthcare Corp., Scottsdale, Ariz. Earlier this year, Reardon wrapped up work as chief restructuring officer at Doctors Community, a role he took on after the company declared bankruptcy because of the collapse of healthcare financier National Century Financial Enterprises. Argilla will be based in St. Louis, Reardon said. -- by Vince Galloro