Tenet Healthcare corporation announced today that a company subsidiary has signed a definitive agreement to sell Shelby Regional Medical Center, a 54-bed acute care hospital located in Center, Texas to Shelby Medical Holdings, a newly formed company owned by Tariq Mahmood, M.D. Pre-tax proceeds are expected to be approximately $2 million. Tenet expects to use the proceeds for general corporate purposes.
According to a Tenet press release, Tariq Mahmood is an accomplished hospital owner and operator with more than 10 years of experience running rural hospitals. His companies operate three hospitals in central Texas. They are in Cameron, Whitney and Dilley. Dr. Mahmood is an internist and has been practicing medicine in Texas for more than 20 years.
Center mayor, John Windham is pleased with the sale. "This was our first objective, to get the hospital sold. I feel comfortable with the individual buying the facility and look forward to having the company in the community."
For almost two years, Tenet officials have worked with Center leaders to develop solutions for the continuation of health care services in that community. Tenet had difficulty in attracting and retaining physicians. Also the rising number of uninsured and underinsured patients didn't help with increased operating costs. According to Tenet the average daily census is five patients.
Under the agreement, Shelby Medical Holdings has committed to offer employment to substantially all current employees who are in good standing. The sale is expected to be completed by Nov. 30.