• E-mail
• Print
• RSS

Tenet to sell Redding Medical Center to HPA

Compliance Monitor, April 21, 2004

Want to receive articles like this one in your inbox? Subscribe to Compliance Monitor!

Tenet Healthcare Corp., based in Santa Barbara, CA, has agreed to sell Redding Medical Center to Hospital Partners of America (HPA) for $60 million, according to an April 16 company statement. Tenet agreed last year to sell the hospital when the OIG said in September that it may exclude Redding from further participation in Medicare and other federal health care programs.

This occurred after Tenet agreed to pay $54 million to settle allegations that at least two of its doctors subjected patients to unnecessary heart operations and defrauded government insurance programs.

Proceeds from the sale will be retained by Redding Medical Center, Inc., the subsidiary that owns the 246-bed hospital.

The deal is expected to close by June 30, Tenet said.

HPA, a privately held company based in Charlotte, NC, acquires and operates hospitals in partnership with physicians across the country. In December 2003, HPA acquired Twelve Oaks Medical Center, a two-campus, 524-bed hospital in Houston, from a Tenet subsidiary.

Tenet also agreed last month to pay nearly $31 million to settle one investigation involving a Tenet-owned hospital in Florida and a second nationwide probe. In January, Tenet said it planned to sell 27 hospitals in California, Louisiana, Massachusetts, Missouri, and Texas.

Want to receive articles like this one in your inbox? Subscribe to Compliance Monitor!

• E-mail to a Colleague
• Print
• RSS
• Archive