The following transaction developments occurred between Aug. 1-8.
1. HCA Reaches Definitive Agreement to Buy Out JV Partner, Acquire Denver’s HCA-HealthOne
HCA has reached a definitive agreement to acquire the Colorado Health Foundation’s shares of its Denver-based joint venture, HCA-HealthOne. The Nashville, Tenn.-based hospital operator will purchase the foundation’s remaining ownership interest — approximately 40 percent — for $1.45 billion. The transaction is expected to close in the third quarter of 2011.
2. Connecticut’s Johnson Memorial, Saint Francis Care Enter Affiliation Talks
Hartford, Conn.-based Saint Francis Care and Johnson Memorial Medical Center in Stafford Springs, Conn., have signed an exclusive agreement to explore an affiliation. The two parties hope the proposed affiliation will maintain the inpatient hospital presence in north central Connecticut, enhance physician recruitment and retention, expand services and lead to new capital projects.
3. New York’s Auburn Memorial Issues Request for Proposal to 5 Hospitals
Auburn Memorial Hospital in Syracuse, N.Y., is on the lookout for a partner. The hospital has issued a request for proposals to five hospitals: Syracuse-based SUNY Upstate Medical University, Crouse Hospital and St. Joseph’s Hospital and Health Center and Rochester-based Strong Memorial Hospital and Rochester General Health System.
4. Mississippi County Approves Baptist Memorial Health Care’s Sale of BMH-North Mississippi
Baptist Memorial Health Care in Memphis, Tenn., will now have control over Oxford, Miss.-based Baptist Memorial Hospital-North Mississippi after the city of Oxford and Lafayette County approved its sale. The state still must approve construction of a hospital, and officials at BMHC said they can’t expand on the current site because it is landlocked on 13 acres.
5. MedCath Completes Sales of Heart Hospitals in New Mexico, Arkansas
MedCath has sold Heart Hospital of New Mexico to Lovelace Health System in Albuquerque and Arkansas Heart Hospital to AR-MED. The transaction values the Albuquerque-based Heart Hospital of New Mexico’s assets at $119.0 million. Purchase terms for the sale of Little Rock-based Arkansas Heart Hospital are based on the hospital’s valuation of $73.0 million plus a percentage of its available cash. The two deals bring MedCath’s total transactions to nine.
6. Ohio’s Dunlap Community Hospital, Aultman Health Foundation Plan Partnership
Orrville, Ohio-based Dunlap Community Hospital and Canton-based Aultman Health Foundation have signed a letter of intent that would make Dunlap a subsidiary of Aultman. The release said the 25-bed Dunlap would plan on remaining a non-profit community hospital, and it would also plan to continue to operate as a critical access hospital with all current management retaining positions.
7. Louisville Hospital System Merger Lays Out Potential Board of Trustees
Ten residents of Louisville, Ky., will make up the 18-person board of trustees if the merger between the University of Louisville Hospital and two hospitals within Denver-based Catholic Health Initiatives becomes finalized. Of the other eight members, three would be from Lexington, Ky., one from Colorado (CHI will own 70 percent of the new system) and four from other various parts of Kentucky.
Related Articles on Hospital Transactions:
8 Recent Hospital and Health System Transactions
To Sell or Not to Sell: 3 Considerations for Leaders of Struggling Hospitals
How Investors Profit From Ailing Hospitals
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