NEW YORK, Sept 30 (Reuters)

Tenet to sell Houston hospital
9/30/2003 5:40:36 PM

Tenet Healthcare Corp. (THC) , beset by government probes of its billing and
physcian recruiting practices, said on Tuesday it has agreed to
sell Twelve Oaks Medical Center in Houston to Hospital Partners
of America Inc.

Gross proceeds from the sale of Twelve Oaks are estimated
at $25 million for property, plant and equipment, said Tenet,
which operates 112 hospitals.

Twelve Oaks Medical Center is a 524-bed acute care hospital
with two campuses in the River Oaks and Sharpstown areas of
Houston, Texas, Tenet said.

Hospital Partners, which is privately held, plans to sell a
portion of the hospital to local physicians, Tenet said.
In March, Tenet said it would divest or consolidate 14
hospitals that no longer fit the company's strategy to operate
in urban markets, where it has a strong position.

Hospital deals covering 11 hospitals are expected to
generate net proceeds of $630 million after taxes and
transaction costs, Tenet said.

Tenet, which closed two of the hospitals, said it is in
talks to sell the remaining hospital of the 14.

Tenet is contending with weakened earnings and government
investigations about how it billed Medicare for the sickest
patients and its physician recruiting practices.