Tenet begins operating the facility Apr. 16. Georgia International filed for protection from its creditors under Chapter 11 of the Bankruptcy Code in Apr. 2000.
The 21-acre South Fulton Medical Center's most recent net operating revenue was $85 million, according to Georgia International.
"The acceptance of Tenet's bid by the court represents a unique opportunity to secure the future of South Fulton Medical Center for patients, physicians and employees who rely upon this hospital," Reynold J. Jennings, executive vice president of Tenet's Southeast division, says in a prepared statement.
The South Fulton takeover comes almost a week after Intracoastal Health Systems signed a letter of intent to sell Good Samaritan and St. Mary's medical centers in West Palm Beach, FL to Tenet. Terms of the letter were not disclosed but the offer was large enough to cover Intracoastal's $150 million debt to part-owner Catholic Health East, according to healthy industry sources familiar with the deal. Ownership will be transferred to Tenet by June 30.
Tenet subsidiaries currently operate four acute-care hospitals in the Atlanta area--Atlanta Medical Center Downtown, North Fulton Regional Hospital, Roswell, GA; Spalding Regional Hospital, Griffin, GA; and Sylvan Grove Medical Center, Jackson, GA.
It was only recently that Tenet launched a full-scale effort to get back on the hospital acquisition trail after two years of clearing away a negative debt load and recently closing on $2 billion in financing. The acquisition effort has been cited by Tenet officials as critical to the firm's long-term growth. Tenet owns and operates 110 acute-care hospitals with 26,914 beds in 17 states.
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