DALLAS – May 20, 2005 – Tenet Healthcare Corporation (NYSE: THC) announced today that a company subsidiary has entered into a definitive agreement to sell 420-bed Brotman Medical Center in Culver City, Calif., to a group led by Prospect Medical Holdings, Inc. that will include physicians on the staff of the hospital and private investors from the community.
Net after-tax proceeds, including the liquidation of working capital, are estimated to be approximately $27 million. The company expects to use the proceeds of the sale for general corporate purposes.
Prospect Medical Holdings, Inc., based in Culver City, is a health care management services organization that provides management services primarily to affiliated independent physician associations. Prospect’s chairman and chief executive officer is Jacob Y. Terner, M.D., who was a member of Brotman’s medical staff for almost 30 years and also served as chairman of the pathology department for many years. For the past four years, Dr. Terner has served as a member of the Brotman Medical Center governing board. Dr. Terner held the position of clinical professor of obstetrics and gynecology at the University of Southern California School of Medicine from 1972 to 2001. He is currently emeritus professor of obstetrics and gynecology. Dr. Terner also served as Chairman and CEO of Century MediCorp, Inc., a publicly traded, integrated health management organization from 1988 until its merger in 1992 with Foundation Health Corp. During that time Century MediCorp owned two hospitals. The buyers intend to continue to operate Brotman Medical Center as an acute care facility and maintain its emergency department. As part of the agreement, the buyers have committed to offer employment to substantially all employees of the hospital. The transaction is expected to conclude by July 31 following completion of normal regulatory requirements.
Brotman Medical Center is one of 27 hospitals Tenet announced it was divesting on Jan. 28, 2004. The company has completed the divestiture of 22 of the 27 facilities. Discussions and negotiations with potential buyers for the remaining four hospitals slated for divestiture are ongoing.
Tenet Healthcare Corporation, through its subsidiaries, owns and operates acute care hospitals and related health care services. Tenet’s hospitals aim to provide the best possible care to every patient who comes through their doors, with a clear focus on quality and service. Tenet can be found on the World Wide Web at www.tenethealth.com.
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Some of the statements in this release may constitute forward-looking statements. Such statements are based on our current expectations and could be affected by numerous factors and are subject to various risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended Dec. 31, 2004, our quarterly reports on Form 10-Q and periodic reports on Form 8-K. Do not rely on any forward-looking statement, as we cannot predict or control many of the factors that ultimately may affect our ability to achieve the results estimated. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.