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Group Hopes To Find Buyer To Keep Alvarado Hospital Open

POSTED: 3:56 pm PDT June 12, 2006
UPDATED: 6:09 pm PDT June 12, 2006

The health care group that owns Alvarado Hospital Medical Center has indicated that it intends to find a buyer who will to keep the facility open as an acute-care facility, it was announced Monday.

Tenet Healthcare Corp. agreed recently to pay the federal government $21 million and either sell or close down the hospital to settle a criminal case involving alleged illegal kickbacks to doctors.

Dr. Stephen Newman, chief executive officer for Tenet California, sent a letter to county Supervisor Dianne Jacob stating that the company will work to transfer ownership to a company that will keep the hospital open.

"I can assure you that we will make our very best effort to obtain a viable offer from a suitable, experienced hospital operator that would keep Alvarado open as an acute-care hospital in the future," Newman said.

"I cannot offer you an ironclad guarantee that such an offer will be forthcoming, but I can promise that we are working diligently toward that goal," Newman said. "As this process unfolds, we will continue to operate Alvarado with no interruption of services."

Jacob said the letter is significant because it marks a "commitment on Tenet's part to preserve the highly-specialized services Alvarado provides."

"The potential closure of Alvarado Hospital has created anxiety and fear in the community," she said. "Monday we can breathe a little easier."

In the letter, Newman said Tenet has sold 17 California hospitals since 2004, all of which have remained open as acute-care facilities.

"I am not aware of any hospital we have sold in California that has since closed its emergency room," he said.

Alvarado Hospital Medical Center, Tenet HealthSystem Hospitals Inc. and former Alvarado chief executive officer Barry Weinbaum were indicted in 2003 by a grand jury on 19 charges of illegally paying kickbacks to doctors.

The indictment alleged that Tenet spent more than $10 million to induce doctors to refer patients to Alvarado.

The settlement will avert a third criminal trial. The case ended in two mistrials, with deadlocked juries both times.

The U.S. Attorney in San Diego now will dismiss all criminal charges against the three defendants and will not file any civil charges.


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