Tenet Healthcare Corp., Santa Barbara, Calif., entered into a definitive agreement to sell a Los Angeles hospital on its divestiture list to CHA Medical Group, which specializes in fertility treatments. Terms of the sale of 434-bed Hollywood Presbyterian Medical Center were not disclosed, but Tenet said its after-tax proceeds would be about $69 million. The sale was expected to close by Dec. 31. Tenet bought the hospital, then known as Queen of Angels-Hollywood Presbyterian Medical Center, for $86.5 million in 1998.
CHA Medical agreed to operate the facility as a full-service hospital with a 24-hour emergency room. The medical group owns four acute-care hospitals, two specialty clinics for Oriental medicine, and two infertility clinics, one in Korea and the other in Los Angeles. With the agreement, Tenet has sold or agreed to sell 21 of the 27 hospitals on a divestiture list announced in January. When it completes the divestiture program, Tenet will own or operate 69 hospitals. -- by Vince Galloro