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Plymouth Health Signs Definitive Agreement to Purchase Alvarado Hospital Medical Center

Posted on: Friday, 27 October 2006, 06:00 CDT

Plymouth Health, a newly formed physician-owned company, announced today it has signed a definitive agreement to purchase Alvarado Hospital Medical Center from a subsidiary of Tenet Healthcare Corporation (NYSE: THC).

Financial terms of the deal were not disclosed by Plymouth, and the transaction will not conclude for 60 to 90 days, following completion of Plymouth's due diligence and normal regulatory and closing requirements. Plymouth Health, based in California, is a physician-owned company formed specifically to acquire and operate Alvarado Hospital Medical Center. The company will continue operating Alvarado as an acute care facility and maintain its 24-hour emergency room services.

Plymouth Health's principals include members of a family of physicians -- Pejman Salimpour, M.D., and Pedram Salimpour, M.D. -- who also own CareNex Health Services, a healthcare technology and client services organization specializing in business process outsourcing, disease management programs, and patient-physician communications services.

Dr. Pejman Salimpour, a practicing physician, is Professor of Clinical Pediatrics at the UCLA School of Medicine and formerly served as the Clinical Chief of Pediatrics at Cedars-Sinai Medical Center. He also is a member of the National Latino Healthcare Task Force and was recently appointed to the National Advisory Council of the United States Small Business Administration. Dr. Pedram Salimpour, a practicing physician, is the first person ever to have twice received the American College of Physicians' Research Award. He currently serves as a member of the Board of Directors of the UCLA School of Public Health, the Board of Advisors of the University of California at Riverside, and is President-Elect of the Los Angeles County Medical Association (District-6). Both Dr. Pejman Salimpour and Dr. Pedram Salimpour have received Commendations from the Governor of California for their "Distinguished Record of Service to California's Children."

The Salimpours also founded a not-for-profit organization called NexCare Collaborative. NexCare's most notable project was First 5 LA Connect, which has helped more than 100,000 Los Angeles families with children learn more about or gain access to free or affordable health insurance and healthcare. The centerpiece of the program was a comprehensive helpline, professional call center and Web site.

Plymouth Health will offer employment to substantially all current employees in good standing.

The sale or closure of Alvarado Hospital Medical Center was required by the San Diego United States Attorney's office and the Office of Inspector General in the U.S. Department of Health and Human Services as part of a settlement agreement to end more than three years of prosecution of the hospital and its former chief executive officer regarding certain physician relocation agreements at the hospital. Tenet had said it would seek a qualified buyer to continue operating the hospital as an acute care facility by the government-mandated deadline of February 2007.

"We feel we can now put to rest any uncertainty about the hospital's future," said Dr. Pejman Salimpour. "Today marks the beginning of a new chapter for Alvarado, and we are pleased that we have been selected to continue the hospital's mission of caring for patients in San Diego."

Plymouth's purchase of Alvarado Hospital Medical Center would ensure the hospital's continued participation in state and federal healthcare reimbursement programs, including Medicare.

Reaction to the sale from elected officials and the healthcare community has been very positive:

"This is great news for San Diego and the 900,000 people depending on Alvarado's care. The emergency room service is critical to meeting the community's healthcare needs, as are the medical center's comprehensive rehabilitation program and its nationally acclaimed cardiac program. I applaud Tenet's decision and I look forward to working with the Salimpours to ensure the continued availability of the highest quality medical care for our county's residents." Dianne Jacob, San Diego County Supervisor, District 2

"As the chief of staff representing the medical staff at Alvarado Hospital, I am pleased that Plymouth Health has agreed to purchase Alvarado and continue operating it as an acute care facility. Regardless of the owners, the physicians have continued to strive to provide high-quality care to the patients at Alvarado. The medical staff is enthusiastically looking forward to working with Drs. Pejman and Pedram Salimpour. We're encouraged that they appreciate the value of a hospital like Alvarado and we will work with them to continue to serve its patients and the surrounding community." Dr. Michael L. Butera, Chief of Medical Staff, Alvarado Hospital

"The California Hospital Association applauds Tenet Health's selection of Plymouth Health for the acquisition of Alvarado Hospital Medical Center. This acquisition, which keeps Alvarado and its emergency room open, is good news for San Diego and for California's hospital sector. Dr. Pedram Salimpour and Dr. Pejman Salimpour, whom I have known for several years, have excellent reputations, and their emphasis on quality care will be an excellent match for Alvarado's medical staff, which has earned a well-deserved reputation for medical excellence over the last three decades." C. Duane Dauner, President and CEO, California Hospital Association

"Our number-one concern is patient care, and these doctors, Pedram and Pejman Salimpour, have a history of working hand-in-hand with nurses and respecting their professional judgment. The Salimpours' acquisition of Alvarado Hospital gives us an opportunity to have doctors with an impeccable record working with a professional nursing staff to deliver a level of patient care that has never been done before in San Diego. Nurses will have a real voice in patient care at Alvarado." Jill Furillo, Southern California Director, California Nurses Association

"I am delighted to learn that the Salimpour group will soon be managing San Diego's Alvarado Hospital. CMA has had a very positive working relationship with Dr. Pejman Salimpour on various issues, and I have the highest regard for his integrity and capability. This is certainly good news for Alvarado and the physicians and patients who rely on this vital institution." Dr. Jack Lewin, CEO, California Medical Association

"Every physician, healthcare worker and patient concerned about access to healthcare services should welcome Plymouth Health to San Diego County. The doctors serving Alvarado worked hard to ensure that the new owners of Alvarado Hospital would be dedicated to the community's needs and to partnering with the medical staff, as the Salimpours have demonstrated. The acquisition of the hospital ends a long period of uncertainty and marks a new era for Alvarado, which we believe will enable the dedicated and talented medical staff and hospital team to achieve unprecedented excellence in meeting the needs of our patients and restoring Alvarado to its pre-eminent position in San Diego." Dr. Theodore Mazer, President, San Diego County Medical Association

Plymouth Health is a physician-owned company formed to acquire and operate Alvarado Hospital Medical Center. The company is a part of the California-based CareNex LLC group of companies. More information is available at www.plymouthhealth.com.

Source: Business Wire

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