Greatwest Hospitals is predicting a quarterly loss.

The Santa Ana company said it expects the sale of its hospital group to American Healthcare Management of Dallas to result in a $3-million to $3.5-million loss for the second quarter ending March 31. The group includes seven Southern California hospitals, eight health-services companies and five medical office buildings. Greatwest said the value of the deal has changed from about $95 million to about $88 million because it will retain about $7 million in accounts receivable. Greatwest is getting out of the hospital business to operate its 200,000-member prepaid health plans and will change its name to reflect that change of direction.

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