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| Nonprofit Lloyd Noland Foundation wins $7.7 million verdict against Tenet Healthcare |
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The Birmingham News, December 18, 2008 - Jury finds against Tenet in lawsuit The Lloyd Noland Foundation won a $7.7 million verdict Wednesday against Tenet Healthcare in Birmingham's federal court. The trial in the almost 8-year-old case began Dec. 8, in U.S. District Judge Karon Bowdre's court. Lloyd Noland sued Tenet in 2001, claiming the hospital chain breached a contract the two agreed upon when Tenet bought Lloyd Noland Hospital in Fairfield from the foundation in 1996 for $47 million. Tenet agreed to sell back to the foundation 120 of the hospital's 319 beds for $1 and to help the foundation relicense them as long-term acute care beds, according to court records. Since selling the hospital, the nonprofit Noland Foundation has gone into the long-term care business and owns specialty hospitals and retirement communities. Tenet, a for-profit hospital company based in Dallas, is the parent company of Brookwood Medical Center in Homewood. Noland said in its case that the problem arose when Tenet sold the hospital in 1999 to the Fairfield Healthcare Authority, who turned the hospital over to HealthSouth Corp. to rename and run as HealthSouth Metro West. Noland argued that Tenet failed to make sure that Fairfield or HealthSouth would honor Tenet's commitments to Noland. Both Fairfield and HealthSouth fought the transfer of the 120 beds to Noland. The Alabama Supreme Court ultimately ruled in Noland's favor on its right to the beds in 2002, and Noland has since used 45 of them at St. Vincent's East. But 55 of the beds were to be used in a long-term care unit at Metro West, which the hospital continued to fight until it closed in 2004. The other 20 beds did not have a specified use. In the most recent case, the jury awarded Noland $2.1 million for the contract breach involving the 45 beds now at St. Vincent's East and $3 million for the 55 beds that never went into Metro West. Noland had asked for $24 million. Noland also asked for Tenet to refund much of the money that Noland had provided the company for a study of the health care needs of western Jefferson County and for indigent care at the hospital. Noland claimed that Tenet only spent a small portion of the money correctly. The jury agreed and directed Tenet to pay $2.6 million, most of what Noland had given for the study and indigent care. Gary Glasscock, Noland's chief executive officer, would not say what he thought of the jury's verdict. "The jury has spoken," Glasscock said, without elaboration. Attorneys for Tenet declined comment. A related case that Noland filed against HealthSouth is still pending in the Jefferson County Circuit Court in Bessemer. By Anna Velasco, The Birmingham News staff writer E-mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ©2008 Birmingham © 2008 al.com All Rights Reserved. Source: http://www.al.com/business/birminghamnews/news.ssf?/base/business/122959175996670.xml&coll=2 » Post Comment
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