Hospital Management Deal Collapses

Tenet Healthcare Corp. and Cedars-Sinai Medical Center in Los Angeles said they have canceled a deal in which Cedars would have assumed management of two Tenet hospitals in West Los Angeles. The deal fell through when the companies were unable to reach an acceptable agreement with the company that owns the Century City Medical Center building, a Cedars administrator said. Tenet manages the hospital but does not actually own the hospital property. Under the proposal, Santa Barbara-based Tenet would have allowed Cedars to manage the Century City hospital and Midway Hospital Medical Center. “We were hoping this would strengthen our competitive position, but we have other things we’re working on,” said Rick Jacobs, a Cedars senior vice president.