The $41 million sale of Garden Grove Hospital and Medical Center by Tenet Healthcare Corp. to Prime Healthcare Management Inc. has wrapped up.
Prime, which is based in Victorville, also operates West Anaheim Medical Center, La Palma Intercommunity Hospital and Huntington Beach Hospital.
Garden Grove, which has 167 beds, is the fifth OC hospital Tenet has sold in recent years.
In 2005, the hospital operator sold four of its local facilities to Integrated Healthcare Holdings Inc. of Santa Ana for $70 million.
Tenet also sold a San Dimas hospital to Prime.
In a release, Dallas-based Tenet said the hospitals only were marginally profitable in 2007.
The Business Journal’s 2007 hospital list showed that Garden Grove posted a pretax loss of $1.7 million on net patient revenue of $70.6 million in the 12 months ended last September.
Earlier this week, state regulators sued Prime over billing issues.
The Department of Managed Health Care is seeking to bar Prime from billing insured patients for unpaid medical bills the hospital chain contends it is owed from insurers and is seeking from patients as a last resort.
Insurers contend Prime inflates what it charges them for patients treated in its hospitals.
Prime officials, in published reports, called the suit “frivolous” and said they were disappointed in the state’s action.
