Less than a year after the Federal Trade Commission blocked the transfer of Medical Center Hospital in Punta Gorda, Fla., to Columbia Healthcare Corp., Adventist Health System/Sunbelt has agreed to sell the facility to Health Management Associates for an undisclosed amount.
Naples, Fla.-based HMA will begin managing 208-bed Medical Center on April 15, with the closing expected over the next four to nine months, pending regulatory approval, a Sunbelt spokeswoman said.
Under the agreement, HMA will acquire the assets of Medical Center, and Orlando, Fla.-based Sunbelt will assume its liabilities, spokespersons for the two hospital groups said.
While the companies declined to provide details of the transaction, HCIA, a Baltimore-based healthcare research firm, said Medical Center had total assets of $42.1 million in 1992 and total liabilities of $40.5 million. It earned $1.3 million in 1992 on revenues of $55 million, HCIA said.
Last year, the FTC blocked the transfer of Medical Center to Columbia, charging the non-cash deal was anticompetitive and would lead to price-fixing because Columbia already owned one of the three hospitals in Charlotte County (Aug. 16, 1993, p. 21). Under the proposed swap, Columbia, which has since merged with HCA-Hospital Corporation of America, would have given Adventist its hospital in Kissimmee, Fla.
William Shoen, HMA's president, said it was too early to determine changes at Medical Center, but he said HMA most likely would add services and a physician-hospital organization for managed-care contracting.
Medical Center's greatest asset is its location in a growing market, Mr. Shoen said. The hospital operates Charlotte County's only open-heart surgery program, which will make it attractive to insurers and managed-care companies, he added.
HMA operates 20 hospitals with 1,448 beds in 10 states.