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Court Blocks Closure of Former Nonprofit Hospital at Request of Attorney General Lockyer

Concerns Over Failure of Tenet Healthcare System To Meet Public Interest Conditions
Tuesday, August 13, 2002
Contact: (415) 703-5837

(LOS ANGELES) - Attorney General Bill Lockyer today won a Los Angeles Superior Court order to block the imminent closure of Daniel Freeman Marina Hospital, a nonprofit facility acquired recently by Tenet Healthcare Corp.

"This is great news to ensure that the community has input in Tenet's plans for the operation of the Marina hospital and the delivery of quality health care in the area," Lockyer said.

The preliminary injunction was granted by Judge Dzintra Janavs after the court was told that Tenet is closing the Marina hospital without having satisfied public interest conditions imposed when the for-profit corporation acquired the nonprofit Daniel Freeman hospitals in Inglewood. The judge ordered Tenet to keep the doors open to Marina hospital, continue providing emergency care, admit new non-emergency patients and stop the process of closing the facility until the Attorney General's conditions are met or the trial is held in the case.

"Tenet was supposed to consult with the local community and the hospital governing board before deciding whether to close the Marina hospital or significantly reduce hospital services," Lockyer said. "We want Tenet to satisfy our public interest conditions."

By law, the Attorney General must review nonprofit hospital transactions to ensure that they are consistent with standards set by the Legislature and state charitable trust law. Two public hearings were held in Los Angeles on the proposed transaction. Many of the conditions imposed by the Attorney General in approving the transaction were prompted by concerns raised at the hearings. Among other things, the conditions required Tenet to consult with the community and the Marina hospital governing board prior to making any decision on the future of the hospital.

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