Tenet Transfer Extends L.A. Saga

Tenet (THC Quote) has "transferred" three of its hospitals to a group of insiders.

The company announced late Tuesday that Centinela Freeman HealthSystem, which includes a pair of Tenet hospital CEOs, has won the bid for three west Los Angeles hospitals. However, the company failed to disclose terms of the deal -- suggesting to some that it may have turned the hospitals over for free.

"The use of the phrase 'transfer of assets' suggests that this is the first transaction likely to show minimal proceeds to THC," wrote Fulcrum analyst Sheryl Skolnick, who has a neutral rating on the stock. "We think, in other words, that this is the first transaction in which Tenet is essentially giving the assets away to avoid future costs." ...