Tenet Selling Redding Hospital

Tenet (THC Quote) has agreed to sell its most embattled -- and once most profitable -- hospital.

Threatened with the loss of federal funding, Tenet's hospital in Redding, Calif., is now up for sale. The Redding facility, once prized for its profitable cardiac business, has been ailing for more than a year since it came under fire for allegedly performing hundreds of unnecessary heart surgeries. The hospital has already paid a record-setting $54 million fine to end a probe by the federal government. But it still faced exclusion from crucial government insurance programs, such as Medicare and Medicaid, if it remained under the Tenet umbrella.

In a deal reached this week with the government, Tenet committed to sell the Redding facility to a new owner within the next six months. ...