Tenet Healthcare Sells Four New Orleans-Area Hospitals

Published: Oct. 2, 2006 at 7:07 PM CDT|Updated: Oct. 4, 2006 at 10:42 AM CDT
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DALLAS (AP) - Tenet Healthcare Corporation says that it has completed the sale of four hospitals and expects to receive $146.5 million in pretax proceeds, including reimbursement for rebuilding part of a New Orleans facility damaged by Hurricane Katrina.

The company said it closed the sales Sunday.

In one deal, Ochsner Health System bought three Louisiana hospitals, including 317-bed Memorial Medical Center in New Orleans, where patient deaths after Hurricane Katrina led to the arrests of a doctor and two nurses, who may face second-degree murder charges pending the outcome of a grand jury investigation.

The sale also included 203-bed Kenner Regional Medical Center in Kenner, Louisiana, and 207-bed Meadowcrest Hospital in Gretna, Louisiana. Tenet said Ochsner also agreed to reimburse Tenet $8 million for money spent rebuilding the New Orleans Surgical and Heart Institute facility on the Memorial campus.