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For-profit hospital operator M&A update: 8 latest deals involving CHS, Tenet and HCA

Three of the largest for-profit hospital operators entered into several transactions in recent months. Some of the companies are selling off facilities to strengthen their hospital portfolios, while others are exploring ways to expand their reach.

Below is a breakdown of the transactions the for-profit hospital companies have entered into since Oct. 1.

Community Health Systems

Franklin, Tenn.-based Community Health Systems announced in late 2017 that it intends to sell a group of hospitals with combined revenue of $2 billion. The company has made significant progress toward that goal, including multiple deals in the past four months.

On Oct. 1, CHS sold AllianceHealth Deaconess in Oklahoma City to a subsidiary of Oklahoma City-based Integris Health. The company sold two Arkansas hospitals to Little Rock, Ark.-based Baptist Health on Nov. 1, and signed a definitive agreement on Nov. 19 to divest four South Carolina hospitals. On Jan. 1, CHS completed the sale of a two-hospital system based in Spartanburg, S.C. The company sold a New Jersey hospital on Jan. 31.

The hospital divestitures have helped CHS reduce its debt load. The company's long-term debt totaled $13.54 billion as of Sept. 30, down from $13.88 billion at the end of 2017.

HCA Healthcare

Nashville, Tenn.-based HCA Healthcare has entered into a few deals in recent months.

In January, HCA signed a letter of intent to take over Frisbie Memorial Hospital in Rochester, N.H. If the deal closes, Frisbie Memorial will be HCA's third hospital in New Hampshire.

On Feb. 1, HCA completed its acquisition of Mission Health, a six-hospital system based in Asheville, N.C. The $1.5 billion deal closed five months after HCA and Mission signed a definitive agreement.

Tenet Healthcare

Dallas-based Tenet Healthcare divested several hospitals in 2018. Over the past four months, the company has completed one deal.

In July, Tenet announced plans to sell its three remaining hospitals in the Chicago area: Weiss Memorial Hospital in Chicago; Westlake Hospital in Melrose Park, Ill.; and West Suburban Medical Center in Oak Park, Ill. The company completed the deal in January.

Tenet sold the three hospitals to Pipeline Health, a privately held hospital ownership and management company based in Los Angeles.

More articles on healthcare industry transactions:

Baylor Scott & White, Memorial Hermann end merger talks
Dignity Health, CHI merge into $29B system
OhioHealth to add 12th hospital

 

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