acquisition

PA non-profit plans sale to CHS

Anne Zieger — Tue, 19 Aug 2008 12:41:10 -0400

A Northeastern Pennsylvania nonprofit healthcare network, the Wyoming Valley Health Care System, has announced plans to sell out to Franklin, TN-based Community Health Systems. Officials say the transaction will funnel significant capital for improvements into Wyoming Valley, and will help make sure it maintains its standards. The deal is taking place after a year of discussion and analysis. Article

ALSO NOTED: FL bill would require hospital price disclosure; Medical property firm investing in physician groups; and much more

Wed, 30 Apr 2008 06:59:50 -0400

> Florida is considering a bill that would require hospitals to provide pricing information for 150 of the most commonly-performed medical procedures. The information would be posted on a state web site. Article

> A medical property investment firm has formed a division focused on striking financial partnerships with medical groups across the country. Article

> Hospitals across the U.S. continue to flee the auction-rate bond market, including these Detroit-area facilities. Article

> Birmingham, AL-based Medical Properties Trust has completed the acquisition of 10 hospitals and wellness centers. Article

And Finally... Monkey see, monkey...gets eye surgery. Article

HCA Midwest sticks to five-year investment plan, spending $600M

Wed, 02 Apr 2008 07:59:57 -0400

Five years ago, HCA acquired the 12-hospital Health Midwest for $1.13 billion, renaming it HCA Midwest. As part of the buy, HCA execs promised to make some heavy capital investments in the chain's aging facilities, some of which had equipment so outdated that physicians avoided them. Today, five years after the deal--at the time the largest conversion of nonprofit assets to for-profit in U.S. history--HCA seems to have lived up to its promises.

Over the last five years, the chain has sunk a whopping $600 million into capital improvements, exceeding the $450 million it had originally budgeted. Not only has the chain brought in state-of-the-art imaging technology, such as a $2 million cardiac cath lab at Overland Park Regional, it's done extensive renovations, opened new outpatient surgery centers, improved cancer, cardiac and spine care and built new facilities. What's more, the chain expects to invest another $30 million within the next year or so.

To learn more about HCA Midwest's status:
- read this Kansas City Star piece

Related Articles:
HCA's hospital building boom. Report
Catholic Healthcare West plans $9B investment. Report

SPOTLIGHT: Bear deal gives JPMorgan big healthcare stake

Wed, 19 Mar 2008 07:59:52 -0400

If JPMorgan manages to close its bargain-basement rate acquisition of Bear Stearns, JP Morgan will be picking up a big piece of healthcare business. The question is, what to do with it? Bear Stearns has a meaningful healthcare group in place within its investment banking unit, but it comes with some baggage. This includes a recent whistle-blower lawsuit filed by execs at an Illinois hospital who claimed that a Bear exec tried to force them to use both Bear and a particular construction company when looking for CON approval. Makes one wonder how well the rumored "cowboy" culture at Bear will mix with JPMorgan's folks. Article