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BlueMountain Capital Management agreed this week to the terms set out by California Attorney General Kamala Harris (D), clearing the way for six hospitals owned by Daughters of Charity to be sold for $100 million, along with $160 million in loans to the six hospitals for system improvements. (Gorn, 12/16)

The state Health Policy Commission voted Wednesday to scrutinize the growth plans of a large hospital network affiliated with Beth Israel Deaconess Medical Center. The network, called Beth Israel Deaconess Care Organization, or BIDCO, is seeking affiliations with New England Baptist Hospital of Boston and MetroWest Medical Center of Framingham. BIDCO already includes seven hospitals and is the second-largest health care provider network in Massachusetts, with 11 percent of hospital discharges, the commission said. (Dayal McCluskey, 12/16)

State officials said Wednesday that they will break ground early next year on a nearly $120 million hospital that will serve as the flagship institution of Indiana's mental health system. The 159-bed Indiana Neuro-Diagnostic Institute will replace Larue D. Carter Memorial Hospital, which state officials described as "deteriorating." The cost of construction, which is slated to begin in April, will be paid for with money borrowed by the state. (Slodysko, 12/16)

Twenty-three Illinois hospitals will be penalized a total of about $12 million next year for high rates of patient infections and injuries. They ranked as the worst performers for a range of problems including postoperative hip fractures, blood infections, urinary tract infections and accidental cuts and punctures that patients acquired after visiting the hospitals, according to data from the federal Centers for Medicare & Medicaid Services. (Russell, 12/16)