National Medical Enterprises, Santa Monica, Calif., last week agreed to sell 46 psychiatric hospitals and one outpatient facility to Charter Medical Corp. for $200 million, which includes working capital.
NME expects to receive cash proceeds of $186 million before tax benefits and after payment of certain expenses.
NME plans to keep five of its remaining 17 psychiatric hospitals because they're located on the campuses of its acute-care hospitals. The other 12 will be sold or closed.
Charter said the facilities generated $407 million in net revenues and $54 million in operating income in the fiscal year ended May 31, 1993. However, their financial performance has slid. During the first six months of fiscal 1994, they generated $174 million in net revenues and $20 million in operating income.
The deal is subject to federal antitrust clearance, NME said. Most of the facilities are expected to be transferred to Charter by the end of May. Macon, Ga.-based Charter is the nation's largest psychiatric hospital chain, currently operating 75 facilities.
NME also said it sold 90-bed Western Institute of Neuropsychiatry, Salt Lake City, last month to the University of Utah Research Foundation. The sale price wasn't disclosed.