Tenet and the University of Southern California Reach Tentative Agreement Regarding USC University Hospital and USC Norris Cancer Hospital
DALLAS and LOS ANGELES .– Tenet Healthcare Corporation (NYSE: THC) and the University of Southern California today announced they have signed a non-binding letter of intent for the University to acquire USC University Hospital and USC Norris Cancer Hospital, both located in Los Angeles. Financial terms were not disclosed.
A lawsuit was filed by the University of Southern California in August 2006 seeking to terminate the relationship between USC and Tenet. In November 2007, Tenet filed a counterclaim against the University seeking monetary damages. The parties seek to resolve the lawsuit by reaching agreement on sale terms for these two hospitals.
“USC is committed to working on an expedited basis to reach agreement with Tenet,” said Steven B. Sample, President of the University of Southern California. “The long-term vision of the University includes operating state-of-the-art healthcare facilities and enabling USC faculty physicians in the Keck School of Medicine to provide medical care of the highest quality, conduct research, and train more than 1,000 residents and medical students at these hospitals and the Los Angeles County + USC Medical Center. This acquisition would enable us to reach our vision of a fully integrated health care organization on USC’s campus.”
Trevor Fetter, President and Chief Executive Officer of Tenet, said, “We would have preferred to continue our long-standing partnership with the University, however, we explored every avenue to resolve this dispute and have now decided to reach a settlement and move forward. We’re pleased to have reached this tentative agreement.”
A Tenet subsidiary operates USC University Hospital, a 411-bed acute care hospital and the USC Norris Cancer Hospital, a 60-bed cancer hospital. Both hospitals are managed under an agreement with USC and are located near downtown Los Angeles.
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