Posted: Tuesday, February 10, 2009
Tenet Sells Two Hospitals to USC
Tenet Healthcare Corp. said Tuesday it signed a definitive agreement to sell USC University Hospital and
USC Kenneth Norris Jr. Cancer Hospital to the University of Southern California for $275 million.
As part of the sale, Dallas-based Tenet and USC will drop all lawsuits against each other. USC had filed a
lawsuit in August 2006 seeking to terminate its relationship with Tenet and Tenet had filed a counterclaim. The parties said last year that they would start negotiating a sale of the properties.
USC will offer jobs to all or nearly all the hospitals' employees who are currently in good standing, the
“We’re pleased that our agreement to move forward with the sale of USC University Hospital and the Norris Cancer Hospital will bring enhanced clarity to the future of the hospitals and their fine staff,” said Chief Executive Trevor Fetter in a statement.
The sale leaves Tenet – once the largest hospital owner in the region before a Medicare billing scandal
nearly bankrupted the company several years ago – with only a handful of community hospitals in Los
Angeles and Orange counties.
As part of the deal, Tenet retains the hospitals' $35 million in working capital. The deal is expected to close
by March 31.
USC officials could not be immediately reached for comment.
Article By: Deborah Crowe of the Los Angeles Business Journal