Asheville, N.C.-based Mission Health CEO Ronald Paulus, MD, said Nashville, Tenn.-based HCA Healthcare would provide $50 million to $100 million annually to improve area residents' health as part of its proposed acquisition of Mission Health, according to the Citizen Times.
Mission Health officials announced the health system was in talks to be acquired by HCA in March. Dr. Paulus said under the proposed deal, HCA would be prevented from terminating any existing services and facilities for at least five years and would provide up to $100 million to address and improve residents' healthcare needs, the report states.
While neither organization has announced a proposed purchase price for the acquisition, Dr. Paulus said the foundation created through the sale of the health system would be able to generate $50 million to $100 million in income based on a 5 percent return on its assets, indicating the purchase price for the health system may be between $1 billion and $2 billion, the Citizen Times reports.
Dr. Paulus told the publication the health system's board discussed the possibility of a sale or merger last December and voted to pursue a transaction of some kind in January. Officials are negotiating a sale in part because of the industry push to cut costs, and because the health system is in a stable financial condition at the moment, allowing the system to reject the terms of a deal if they aren't ideal, he said.
However, Dr. Paulus said it is "likely" the proposed deal with HCA will move forward, with officials expecting to close the deal between November of this year and February 2019, the report states.