Santa Ana-based hospital operator Integrated Healthcare Holdings Inc. is raising about $11 million in a stock sale with the proceeds set to go to pay down debt.
Kali P. Chaudhuri, a doctor whose KPC Medical Management Inc.’s medical clinics imploded amid management problems and issues with health plans earlier this decade, is buying the shares from Integrated.
The deal includes warrants that convert to 24 million shares and the purchase of 63 million in additional shares.
Chaudhuri already owns about 40% of Integrated Healthcare.
The company plans to pay off $11 million in company debt issued in 2007 with the proceeds from the stock sale.
In 2005, Integrated paid $70 million to Dallas-based Tenet Healthcare Corp. for four local hospitals: Western Medical Center-Santa Ana, Western Medical Center-Anaheim, Coastal Communities Hospital in Santa Ana and Orange’s Chapman Medical Center.
