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ORANGE COUNTY BRIEFLY

Cooper Cos. to Sell Psychiatric Hospital

November 19, 1998|Barbara Marsh

Cooper Cos., moving to focus on its core business of making contact lenses and gynecological devices, said Wednesday it plans to sell one of its psychiatric hospitals to a private Tennessee operator of substance abuse programs for about $5 million.

The Irvine company previously said it agreed to sell its other three institutions.

In the latest deal, Cooper said it agreed to sell its 50-bed hospital in Newcastle, Del., to Focus Healthcare LLC of Ooltewah, Tenn. Cooper said it would sell all of the hospital's assets, except for certain uncollected bills to health insurers. It expects to receive $4.5 million to $5 million from the sale and collections from the health insurers.

It plans to sell the other three institutions to Pennsylvania-based Universal Health Services for $30 million.

Overall, Cooper expects to pocket about $35 million from the two deals--an amount less than the hospitals' book value. The company plans to take a charge in connection with writing off assets.

Cooper said it expects to complete the sales by the end of January.

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