Tuesday, Sept. 2, 2003 | 11:10 a.m.
SANTA BARBARA, Calif. -- Tenet Healthcare Corp. said today it has agreed to sell four Arkansas hospitals owned by its subsidiaries to Triad Hospitals Inc.
Tenet, a leading for-profit hospital chain, said it will receive $175 million for the hospitals, including $142 million for the facilities and $33 million from the liquidation of remaining working capital.
The sale is part of Tenet's plan to cut costs through select divestitures. Tenet's Lake Mead Hospital in North Las Vegas is for sale.
The four Arkansas facilities are Central Arkansas Hospital in Searcy, National Park Medical Center in Hot Springs, Regional Medical Center of Northeast Arkansas in Jonesboro and Saint Mary's Regional Medical Center in Russellville.
Tenet recently cut its financial outlook for 2003 because costs were rising more than expected and it was having trouble negotiating higher rates from health insurers.
The firm has been struggling since last October with several investigations into its practices, including a federal audit of its Medicare billing practices.
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