Since July 31, three of the largest publicly traded for-profit health systems reached agreements to sell hospitals:
HCA
The County of Santa Clara, Calif., on Aug. 21 reached a tentative agreement with Nashville, Tenn.-based HCA Healthcare to purchase its San Jose, Calif.-based Regional Medical Center for $175 million, allowing the hospital to integrate with the county-operated Santa Clara Valley Healthcare system.
Regional Medical Center's trauma center and ST-elevation myocardial infarction program services were initially set to close Aug. 12 due to utilization rates. However, in early August, HCA discontinued closure plans and downgraded the hospital's trauma, comprehensive stroke and certain cardiac service levels.
Both the county and HCA are working to negotiate a definitive purchase agreement and take the approval steps needed to move the transaction forward, which they hope to finalize in the first quarter of 2025.
Tenet
Dallas-based Tenet Healthcare on Aug. 5 agreed to sell its 70% majority ownership interest in Birmingham, Ala.-based Brookwood Baptist Health to Orlando (Fla.) Health.
The proposed $910 million cash deal includes five hospitals, with a total of more than 1,700 beds, as well as affiliated physician practices and other related operations:
- Brookwood Baptist Medical Center (Birmingham)
- Princeton Baptist Medical Center (Birmingham)
- Walker Baptist Medical Center (Jasper, Ala.)
- Shelby Baptist Medical Center (Alabaster, Ala.)
- Citizens Baptist Medical Center (Talladega, Ala.)
The deal is expected to close in the fall. Tenet's Conifer Health Solutions arm signed a 10-year contract to provide revenue cycle management services to the five hospitals.
CHS
Franklin, Tenn.-based Community Health Systems on July 31 signed a definitive agreement to sell its final three Pennsylvania hospitals to affiliates of WoodBridge Healthcare, a nonprofit organization led by healthcare veteran Joshua Nemzoff.
The hospitals are:
- Regional Hospital of Scranton
- Moses Taylor Hospital (Scranton)
- Wilkes-Barre General Hospital
The $120 million deal is expected to close in the fourth quarter.