Albert Einstein Healthcare Network Signs Agreement to Acquire Elkins Park
MossRehab Plans to Offer Expanded Inpatient and Outpatient Services at New Location
PHILADELPHIA, PA, AUGUST 26, 2003 - Albert Einstein Healthcare Network today announced that it has entered into a contract with Tenet Healthcare Corporation
(NYSE: THC) to acquire the Elkins Park Hospital facility, located at 60 East Township Line Road, Elkins Park, PA. Within 60
days, Einstein and Tenet expect to complete the agreement, which includes the Elkins Park Hospital facility, equipment and
the 30-acre parcel of land in Montgomery County on which it is located.
Einstein is purchasing the Elkins Park Hospital facility with the plan of relocating its nationally recognized medical rehabilitation
provider, MossRehab, which is currently headquartered at 1200 West Tabor Road, next to Albert Einstein Medical Center. Elkins
Park Hospital is approximately five miles from MossRehab's present location.
According to Barry R. Freedman, Einstein's President and CEO, "The acquisition of Elkins Park Hospital will allow us to quickly
and cost-effectively enhance MossRehab's inpatient and outpatient facilities and meet its growing needs for additional space,
while also providing an opportunity to expand our services and improve access for our immediate community. We also see this
acquisition as a means to further serve Montgomery County, which neighbors our primary market."
"We're very pleased to have reached a definitive agreement with an organization like Albert Einstein Healthcare Network that
is committed to maintaining access to quality healthcare services in the Philadelphia community," said Trevor Fetter, Tenet's
President and Acting Chief Executive Officer. "We also are gratified that Albert Einstein Healthcare Network has committed
to preserving the jobs of so many employees at Elkins Park. The sale of Elkins Park Hospital will allow us to continue our
focus on strengthening our remaining hospitals in Philadelphia."
Einstein is collaborating with Tenet to offer employment to a substantial number of eligible Elkins Park Hospital staff at
Elkins Park Hospital, in Einstein's network and in available positions in the numerous Tenet Pennsylvania and Jefferson Health
System member hospitals. Gross proceeds to Tenet from the sale are estimated at $13 million, including working capital. The
transfer of ownership will be completed following the receipt of regulatory approvals.
During the next 60 days, Einstein will complete its planning for medical/rehabilitation services to be offered at Elkins Park
Hospital, as well as for the additional services in the vacated space at the Old York Road campus.
According to Freedman, some rehabilitation services are likely to remain at the current site; consequently, some MossRehab
staff will remain at the Tabor Road location. However, Einstein will offer other MossRehab employees and many Elkins Park
employees positions at the Elkins Park location. In addition, Einstein is working with Tenet to provide a seamless transition
of care for patients and for the community.
MossRehab, recognized by
U.S.News & World Report for the 10th year as one of the top rehabilitation hospitals in the country, provides medical services and programs for those
who have experienced brain injury, stroke, amputation and other physical disabilities. MossRehab is also one of only a few
rehabilitation facilities in the U.S. to operate its own research institute, which receives funding from the National Institutes
of Health for studies such as the Model System of Care for Traumatic Brain Injury.
MossRehab's primary inpatient location at Tabor Road currently operates 121 beds.
MossRehab also operates inpatient beds at Sacred Heart Hospital in Allentown, PA and at Frankford Hospital - Frankford in
Northeast Philadelphia, PA. MossRehab's outpatient services and community programs are offered at various locations in Pennsylvania,
New Jersey and Delaware. Further information is available at
www.einstein.edu/mossrehab.
Albert Einstein Healthcare Network, a member of the Jefferson Health System, provides healthcare services through Albert Einstein
Medical Center, Germantown Community Health Services, Willow Terrace (a nursing home), MossRehab, Willowcrest (a center for
subacute care), Belmont Behavioral Health and a number of outpatient and satellite locations. Einstein also operates a primary
care network, Einstein Neighborhood Healthcare.
Tenet Pennsylvania includes Elkins Park Hospital, Graduate Hospital, Hahnemann University Hospital, Medical College of Pennsylvania
Hospital, Parkview Hospital, Roxborough Memorial Hospital, St. Christopher's Hospital for Children and Warminster Hospital.
Publish date: August 26, 2003
