In a related story from Forbes, as soon as the announcement was made, Tenet stocks rose. I guess if you are a hospital chain, it appears closing a hospital will raise the stock? Investors must see this as an opportunity for Tenet to make more money.
Being local to Orange County, it is a very nice state of the art facility as well and not that old. Kaiser did build the same type of facility right across the street too, watched that one go up. In northern California there is the same concern as what we have here, the only ones building and expanding are Kaiser facilities, while others are dwindling and anticipating mergers or worse yet bankruptcies to stay alive. For a history on some related Tenet stories, click here on past items on the blog. It also stated that 30% of the patients from the Irvine facility were now covered by Kaiser across the street. BD
Hospital operator Tenet Healthcare Corp. said Tuesday one of its subsidiaries is closing Irvine Regional Hospital and Medical Center effective Jan. 15.
Tenet added that it will work with hospital employees to find them positions at other Tenet-owned or operated hospitals.
To comply with state law Dallas-based Tenet (NYSE: THC) is providing local authorities with a 90-day notice of the layoffs.
The building housing the hospital is owned by Long Beach-based real estate investment trust HCP. Tenet had previously said it planned to let its lease at the hospital expire in February 2009.
Tenet said it's been told that the new lessee of the building “a new lessee will not accept an operating hospital when its lease commences with HCP.”
HCP asked Tenet to return the property as a closed property. The facility will officially be shut down on Jan. 15, 2009.
Tenet declined to provide revenue or admissions figure for Irvine Regional Hospital. Kaiser Permanente opened a hospital across the street in May, Tenet said, and patient volumes fell sharply as a result.http://www.bizjournals.com/losangeles/stories/2008/10/06/daily20.html
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