The Argonaut -- 8/30/01
Marina del Rey:
Tenet files application with state to acquire Daniel Freeman Hospitals
Carondelet Health Systems which owns and operates Daniel Freeman Hospitals in the Marina del Rey area and in Inglewood has filed an application with the state attorney generals office for state approval of a $55 million acquistion of the hospitals by Tenet Healthcare Corporation of Santa Barbara.
The purchase by Tenet of the Daniel Freeman Hospitals is subject to review by the California attorney general and other agencies.
The state attorney general will review the hospital purchase agreement that Carondelet and Tenet approved in June. Tenet is acquiring the 166-bed Daniel Freeman Marina Hospital on Lincoln Boulevard in the Marina area and the 358-bed Daniel Freeman Memorial Hospital in Inglewood.
Together, the hospitals generated net patient revenues of about $175 million in the most recent fiscal year. In addition to paying $55 million to acquire the two Daniel Freeman hospitals, Tenet has pledged to invest another $50 million during the next ten years in capital improvements and service expansions "to enhance quality and access to health care service" in the areas served by the two hospitals.
As part of the agreement, Tenet also commits to:
- continue the Daniel Freeman Hospitals historical charity care practices;
- honor the Catholic heritage and identity of the hospitals and continue to operate the facilities according to the "Religious and Ethical Directives for Catholic Health Care Services;"
- maintain regional network access to vital services such as emergency rooms and obstetrics;
- offer employment to all active employees in good standing at both hospitals; and
- create a community advisory process to assist in designing services to meet community health care needs.
Tenet is a publicly-held company that trades on the New York Stock Exchange under the symbol THC. The company is on the Fortune 500 list of the nations largest companies as compiled by Fortune magazine. Tenet Healthcare, through its subsidiaries, owns and operates 114 acute care hospitals with 28,250 beds and numerous related health care services.
The company employs approximately 110,000 people in 17 states and services its hospitals from a Dallas-based operations center.
Information on Tenet is available on the companys Web site: www.tenethealth.com
The Sisters of St. Joseph of Carondelet founded the Daniel Freeman Memorial Hospital in Inglewood in 1954 and acquired the Marina Mercy Hospital on Lincoln Boulevard in 1980, which later became Daniel Freeman Marina Hospital. The order is also selling Santa Marta Hospital in the East Hollywood area.