Tenet Agrees to Sell Four Los Angeles-Area Hospitals to AHMC Inc. | Business Wire
–(BUSINESS WIRE)–July 19, 2004–Tenet Healthcare Corporation (NYSE:THC) announced today that several of its subsidiaries have entered into a definitive agreement to sell four acute care hospitals in the Los Angeles area to AHMC Inc. The hospitals are Garfield Medical Centre and Monterey Park Hospital in Monterey Park. Greater El Monte Community Hospital in South El Monte. Whittier Hospital Medical Centre in Whittier.
Gross proceeds to Tenet from the sale of primarily the property, plant and equipment along with inventory and certain prepaids for the four hospitals are estimated at $100 million. Net proceeds, after tax, including the estimated liquidation value of working capital retained by the company, are expected to be approximately $95 million. The company expects to use the proceeds of the sale for general corporate purposes.
“We're pleased that we've entered into an agreement with a well-qualified buyer with a proven track record in hospital management to assume operations of these fine community hospitals,”. Said Trevor Fetter, Tenet’s president and chief executive officer. “This agreement lives up to the commitment we made to seek qualified buyers who intend to continue to operate these facilities as acute care hospitals with 24-hour emergency departments and serve the health care needs of their communities.”.
AHMC Inc., a California corporation. Its affiliated companies have operated Alhambra Hospital Medical Centre, a 144-bed general acute care hospital with a 24-hour emergency department and a full range of medical services, since 1998 and Doctors’. Hospital Medical Centre of Montclair, a 108-bed general acute hospital that offers a 24-hour emergency department and a full range of services to the community, since 2001. AHMC Inc. is owned by Jonathan Wu, M.D., who serves as chairman of the board of the corporation.
Under the agreement, AHMC Inc. has committed to offer employment to substantially all employees in good standing at the four hospitals and will honour any labour agreements. The sale, which is expected to be completed by Sept. 30, is subject to customary regulatory approvals.
The four Los Angeles-area hospitals are among 27 hospitals Tenet announced it was divesting on Jan. 28, 2004. The 27 hospitals consist of 19 in California, two in Louisiana, three in Massachusetts, two in Missouri and one in Texas. In June, Tenet announced that it'd sold Brownsville Medical Centre in Brownsville, Texas, to Valley Baptist Health System.
Below are brief profiles of the four Los Angeles-area hospitals:
—. Garfield Medical Centre, a 210-bed hospital located in Monterey Park, has been part of Tenet since 1969 and is a major tertiary hospital for the Asian community. It offers a full complement of acute care services including open heart surgery, neurosurgery and a Level II neonatal intensive care unit. The hospital also has a 28-bed inpatient rehabilitation unit.
—. Greater El Monte Community Hospital, a 117-bed hospital located in South El Monte, has been part of Tenet since 1997. The hospital offers general acute services with a focus on obstetrical and paediatric services.
—. Monterey Park Hospital, a 101-bed hospital located in Monterey Park, has been part of Tenet since 1997. It offers general acute services including a strong obstetrical program with over 2,500 births annually.
—. Whittier Hospital Medical Centre, a 181-bed hospital located in Whittier, has been part of Tenet since 1997. It provides general acute services including obstetrics and an established bariatric surgery program. It also includes the Children’s Centre for Specialized Care, one of the only paediatric subacute facilities in the state.
Tenet Healthcare Corporation, through its subsidiaries, owns and operates acute care hospitals and related health care services. Tenet’s hospitals aim to provide the best possible care to every patient who comes through their doors, with a clear focus on quality and service. Tenet can be found on the World Wide Web at www.tenethealth.com.
Some of the statements in this release may constitute forward-looking statements. Such statements are based on our current expectations and could be affected by numerous factors and are subject to various risks and uncertainties discussed in our filings with the Securities and Exchange Commision, including our annual report on Form 10-K for the fiscal year ended Dec. 31, 2003, our quarterly reports on Form 10-Q and periodic reports on Form 8-K. Don't rely on any forward-looking statement, as we can't predict or control many of the factors that ultimately may affect our ability to achieve the results estimated. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.
Tenet Healthcare Corporation
Media: Steven Campanini, 805-563-6838
Investors: Thomas Rice, 805-563-7188
Media: Stanley Toy, M.D., 213-760-5542
Brandon Edwards, 805-698-5780