Providence Health & Services has agreed to buy Tarzana Regional Medical Center from Tenet Healthcare Corp. for an undisclosed price.
The 245-bed hospital was formally part of a combined campus known as Encino Tarzana Medical Center. Last month, Victorville-based Prime Healthcare Services Inc. agreed to buy the Encino half of the campus.
In 2004, Tenet disclosed that it intended to sell the combined medical center. But the chain had difficulty getting Long Beach-based Health Care Property Investors Inc. -- the real estate investment trust that owns the Tarzana building and campus -- to agree on the terms of a sale.
Some doctors and medical staff have complained publicly in recent years that Tenet failed to invest adequately in the hospital as it tried to sell the facility. Tenet denied that charge and said it was investing adequately in new capital improvements.
Tenet said that it recently came to a binding agreement with the real estate investment firm, allowing the sale to proceed. Providence said it planned to invest in the hospital and new equipment.
"We will be spending heavily to bring the hospital back up to having state-of-the-art equipment it needs and deserves," said Arnold Schaffer, chief executive of Providence Health & Services of California.