Tustin Hospital Acquired by Washington Company

Healthcare Medical Center of Tustin, a 203-bed hospital, was acquired Thursday by a hospital management company in Kirkland, Wash., headed by a former Healthcare executive director.

Concept Health Group Inc. plans to expand the hospital’s service area deeper into Irvine and develop new centers for oncology and sports medicine, said company Chairman Michael D. Drobot, who was the hospital’s executive director from 1980 to 1984.

Concept purchased the hospital on Newport Avenue from Healthcare International Inc. of Austin, Tex. Terms of the sale were not disclosed.

The hospital has been troubled by low patient occupancy, filling only 25% to 30% of its licensed beds on an average day.

But Concept officials said they hope to increase the hospital’s popularity by developing an oncology group and a sports medicine complex staffed by orthopedic surgeons. Both facilities would target Irvine residents.

“We’re closer to Irvine than any other hospital,” said Dorn Johnstone, associate executive director. “We need to do more marketing.”

The hospital has also embarked on a $13.5-million expansion plan to build a medical office building and purchase additional land near the hospital grounds.