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Tenet Healthcare Sells 6 Hospitals

November 3, 2003

SANTA BARBARA, Calif. (AP) _ Tenet Healthcare Corp., one of the nation’s largest hospital chains, Monday said it closed the sale of five hospitals in Florida, Missouri and Tennessee to Health Management Associates.

Santa Barbara-based Tenet also completed the sale of Elkins Park Hospital in Philadelphia to Albert Einstein Healthcare Network.

Tenet said it will receive about $565 million from the sales.

In March, Tenet said it would sell 14 hospitals as part of a plan to cut costs. Tenet is under federal investigation for its Medicare billing practices.

Deals for the sale of an additional five of the 14 hospitals were announced in September. Those transactions are expected to be concluded before the end of the year. Two of the 14 hospitals have closed and negotiations for the sale of the remaining hospital are ongoing.

The five facilities sold to HMA are Seven Rivers Community Hospital in Crystal River, Fla.; Three Rivers Healthcare System, a two-campus hospital in Poplar Bluff, Mo.; Twin Rivers Regional Medical Center in Kennett, Mo.; Harton Regional Medical Center in Tullahoma, Tenn., and University Medical Center in Lebanon, Tenn.

After the sale, Tenet owns and operates 106 acute care hospitals with 26,216 beds. It employs about 109,500 people in 16 states.

Shares of Tenet closed at $13.49, down 31 cents, or 2.2 percent, on the New York Stock Exchange.

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