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Local hospitals eye Tenet sales

January 30, 2004

Robert Chacon

Some local hospitals are bracing for more patients after hearing of

Tenet Healthcare Corp.'s plans to sell 19 of its 36 California

hospitals, including 14 in the greater Los Angeles area.

Local officials fear some of the hospitals will be forced to close

because Tenet will not find buyers. Others have a wait-and-see

attitude.

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Officials at three hospitals in Glendale -- Glendale Adventist

Medical Center, Glendale Memorial Hospital and Verdugo Hills Hospital

-- and Providence St. Joseph Medical Center in Burbank hope that

hospital closures can be avoided and fear the strain they might face

by serving more patients if the facilities are shut down.

Santa Barbara-based Tenet announced this week it wants to sell 27

hospitals in part because it cannot afford $1.6 billion for seismic

retrofitting on all its California hospitals.

Many of the hospitals Tenet is selling, including Queen of

Angels-Hollywood Presbyterian Medical Center, Encino-Tarzana Regional

Medical Center and Community Hospital of Huntington Park, serve

low-income residents and are unsalable, said Leonard LaBella, chief

executive officer at Verdugo Hills.

"The economics don't work. That's why Tenet is choosing these

[hospitals] to sell," he said. "If a publicly run company cannot run

its hospitals, I don't know who can come in and do better."

L.A. County Supervisor Michael Antonovich, whose district includes

Glendale, plans to introduce a motion at Tuesday's board of

supervisors meeting, directing the county's Emergency Services

Commission to evaluate the effect closing the hospitals will have on

the county's medical and bioterrorism preparedness system.

The certain closure of some Tenet hospitals will have a ripple

effect in the region, LaBella said.

"The first sign will be in emergency rooms. But there will be an

overall geographic redistribution of patients as they search for new

hospitals to receive health care," he said.

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