SOURCE: West Asset Management

February 28, 2007 18:00 ET

West Asset Management and MEDCLR, Inc. Announce Accounts Receivable Purchase From Tenet Healthcare Corp.

Transaction Believed to Be Healthcare Industry's Largest Receivables Portfolio Sold

ATLANTA, GA and HORSHAM, PA -- (MARKET WIRE) -- February 28, 2007 -- West Asset Management, a leading provider of receivables management solutions, and MEDCLR, Inc., the leader in purchasing non-performing healthcare receivables, jointly announced today that they have purchased a portfolio of aged receivables from Tenet Healthcare Corporation (NYSE: THC). The portfolio consists of self-pay accounts aged over 270 days from more than 50 facilities that Tenet previously divested and that the company had already written off. This transaction is believed to be the largest portfolio of healthcare receivables ever purchased in the healthcare industry. With approximately $130 billion set aside annually by hospitals to cover bad-debt expense(1), many healthcare organizations are looking for ways to increase cash flow and realize additional value from their charged-off receivables.

"We are pleased that Tenet has recognized this group's industry leadership and experience in choosing to work with West, MEDCLR, and our servicing partner, NCO Financial Systems, Inc.," said Al Zezulinski, president of MEDCLR.

"The sale of aged and written-off receivables gives a healthcare organization additional cash to fund operations and capital improvements that provide better quality of patient care. These funds benefit both the facilities and the communities they serve," said Tye Hanna, senior consultant for West Asset Management, who acted as the group's representative in the transaction. "Purchasers like MEDCLR and West, with expertise in healthcare receivables, can offer hospitals cash value from accounts that have already been written off. We expect more healthcare providers will seek to realize the buried cash value in their charged-off receivables with transactions like this one."

CarVal Investors partnered with West and MEDCLR to provide due diligence and analytics, and invested with both groups. CarVal Investors, an experienced investor in this asset class, has an on-going relationship with both companies to purchase healthcare receivables, and has partnered with them on a number of healthcare transactions.

About West Asset Management

West Asset Management, a division of West Corp., is one of the leading receivables management companies. The firm's full suite of debt collection solutions helps companies protect their financial performance through improvements to cash flow, expenses and customer retention. More information is available at or 770-618-2206.

About MEDCLR, Inc.

MEDCLR, Inc., is the largest and most experienced debt buyer within the healthcare industry, with billions of dollars in non-performing receivables purchased since 1996. Every day, MEDCLR works with healthcare providers to realize cash and value in dormant accounts. More information on MEDCLR is available at or 866-335-3361.

About CarVal Investors

CarVal Investors is a global leader in opportunistic value investing, including loan portfolios, real estate, corporate securities and special opportunities. Founded in 1987, CarVal Investors -- formerly Cargill Value Investment -- has acquired more than $17 billion in assets in 2,700 transactions, including more than $7 billion in face value of performing and non-performing healthcare receivables. More information is available at or 952-984-3074.

1 - Kaulkin Ginsberg, Healthcare ARM Report 2006

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