Prime Healthcare Services, Victorville, Calif., has purchased one of the campuses of a hospital in Southern California that Tenet Healthcare Corp., Dallas, has been trying to sell for four years, the companies said. Primefounded by cardiologist Prem Reddy, who was named one of Modern Healthcares 2008 Top 25 Minority Executives in Healthcarealso has agreed to buy two other Tenet hospitals in California.
Prime completed the acquisition of the lease on the Encino, Calif., campus of 95-bed Encino-Tarzana Regional Medical Center, effective June 1. Terms were not disclosed. Tenets ability to sell Encino-Tarzana has been hampered by a dispute with the owner of the property, Long Beach, Calif.-based HCP (formerly known as Health Care Property Investors). HCP and Tenet agreed to delay a California lawsuit scheduled to go to trial in October because settlement talks were advancing, Tenet disclosed last month. HCP, Tenet and an unidentified buyer continue to negotiate over the 245-bed Tarzana, Calif., campus, Tenet said.
Tenet also is selling 71-bed Garden Grove (Calif.) Hospital and Medical Center and 64-bed San Dimas (Calif.) Community Hospital to Prime. The deal is subject to regulatory approvals and is expected to be completed in about 30 days. Terms of the definitive agreement were not disclosed. These two hospitals were not on any of Tenets previous divestiture lists, but they were marginally profitable hospitals that did not lend themselves to Tenets strategies, according to the company.
Completing the deal will give privately held Prime 12 hospitals, all in California. -- by Vince Galloro