Hoag Memorial Hospital Presbyterian, Newport Beach, Calif., said it has reached an agreement to lease a hospital in Irvine, Calif., that Dallas-based Tenet Healthcare Corp. plans to vacate in February 2009. Not-for-profit Hoag reached an agreement with HCP, Long Beach, Calif., the real estate investment trust that owns 176-bed Irvine Regional Hospital and Medical Center. Hoag said it is developing plans to operate a general acute-care hospital at the site and will consult community members and state and local officials.
Tenet announced earlier this month that it would not renew its lease on Irvine Regional and another hospital owned by HCP when the leases expire next year. The decision was part of a litigation settlement between Tenet and HCP regarding seven hospitals owned by HCP and operated by Tenet. In the deal, Tenet extended its leases on four other hospitals, and HCP agreed to sell the Tarzana, Calif., campus of Encino-Tarzana Regional Medical Center to Tenet, which in turn agreed to sell the campus to the California region of Providence Health & Services, Seattle, a Roman Catholic system.
At the time the settlement was announced, a Hoag Memorial spokeswoman said she had no knowledge of talks between 417-bed Hoag and HCP officials regarding the Irvine facility. -- by Vince Galloro