AHERF sale approved

Article Abstract:

Tenet Healthcare Corp., a for-profit hospital operator based in Santa Barbara, CA, will purchase Allegheny Health Education and Research Foundation's (AHERF) eight hospitals in Philadelphia, PA, for $345 million. The divestiture was approved by US Bankruptcy Court Judge M. Bruce McCullough who said it was necessary in order to keep the bankrupt company's hospitals and their academic institutions operational. Tenet Healthcare's purchase price, $290 million of which will be used to pay AHERF's creditors, is significantly lower than the $460-million bid tendered by Nashville, TN-based Vanguard Health Systems that was withdrawn on Sep. 29, 1998.

Comment:

Will purchase Allegheny Health Education and Research Foundation's 8 hospitals in Philadelphia, PA, for $345 mil

Acquisitions & mergers, California, Tenet Healthcare Corp.

Bidders still interested in AHERF hospitals

Article Abstract:

Allegheny Health Education and Research Foundation has retained the interests of bidderd for its hospitals in Philadelphia, PA, despite inaccurate financial reports on the operation. The system reported that the financial reports for the operations in 1997 are unreliable and may have overstates its hospitals' income. AHERF reported that gains from so-called restricted funds may have been included in earnings income and capital gains. AHERF counsel Lee Powar said concerns persist over the audit procedures used by former accountant Coopers and Lybrand.

Comment:

Retains the interests of bidder for its hospitals in Philadelphia, PA, despite inaccurate financial reports on the operation

Allegheny Health Education and Research Foundation

AHERF could cut its losses in the East

Article Abstract:

AHERF is now considering selling all nine of its money-losing hospitals in Philadelphia, PA. According to consultants who are familiar with the Philadelphia market, divesting all nine hospitals may be the only way for the company to find a buyer. The company's new president, Anthony M. Sanzo, may also lay off employees and lend some of the company's dropping financial reserves to the Eastern operations. Sanzo also said that the company will continue to reduce programs and services throughout its operations.

Comment:

Is now considering selling all nine of its money-losing hospitals in Philadelphia, PA

AHERF