Hospital Partners of America, Charlotte, N.C., said it is closing one hospital and putting another hospital up for sale, plans that, if completed, would leave the privately held company with four hospitals, two owned and two leased. Both of the hospitals were acquired in separate deals from Tenet Healthcare Corp., Dallas.
HPA said it is closing the two-campus River Oaks Hospital in Houston because it has not been able to improve the financial performance of the facility since acquiring it in 2003. River Oaks lost $19.9 million on net revenue of $307.8 million in the three years ended Sept. 30, 2007, according to the American Hospital Directory.
The hospital that the company hopes to sell is 238-bed Shasta Regional Medical Center, Redding, Calif., a company spokesman said, confirming a published report. HPA bought the former Redding Medical Center in 2004. Without admitting wrongdoing, Tenet paid $54 million to settle civil Medicare fraud allegations and $395 million to settle civil lawsuits related to medically unnecessary cardiac procedures performed at Redding Medical Center. The hospital lost $44.7 million on net revenue of $350.6 million in the three years ended Sept. 30, 2007, according to American Hospital Directory. -- by Vince Galloro