More than 650 of the nation's hospitals were involved in mergers or acquisitions in 1994, eclipsing the numbers of hospital deals in recent years.
The merger frenzy that enveloped the industry this year touched more than 10% of the nation's hospitals, according to figures collected by MODERN HEALTHCARE.
About half the hospitals involved in deals were thrust into the fury when an investor-owned parent company was acquired by or merged with another investor-owned firm. That number includes 219 investor-owned hospitals that were merged into other investor-owned chains in 1994 and 154 investor-owned hospitals whose mergers into other chains are expected to be completed in early 1995.
Apart from those chain mergers, a staggering 301 other hospitals were involved in 176 deals during 1994. A list of those deals, some of which are still in progress, follows.
Nothing in recent history seems to parallel the activity of 1994. In the past, the main organization keeping track of hospital mergers has been the American Hospital Association, and in 1993 it recorded 18 completed community hospital mergers.
That compares with 15 mergers the AHA tracked in 1992, 23 mergers in 1991, and 13 in 1990 (Dec. 20-27, 1993, p. 3).
The big news in 1994 was on the investor-owned side, in which hospitals were acquired or merged into other companies. For example, the year's champion of hospital mergers, Louisville, Ky.-based Columbia/HCA Healthcare Corp., started the year as Columbia Healthcare Corp., with 95 hospitals. In February, it added 97 hospitals in a $5.7 billion stock swap with Hospital Corporation of America and changed its named to Columbia/HCA.
What's more, Columbia/HCA completed or announced 26 individual deals to buy or sell 30 hospitals in 1994.
In 1995, Columbia/HCA plans to acquire Healthtrust, another investor-owned chain. That $5.6 billion deal will add 116 hospitals to the Columbia/HCA trove. Also pending is National Medical Enterprises' $3.3 billion purchase of American Medical International, Dallas.
Other chain mergers in 1994:
Healthtrust, Nashville, Tenn., acquired Epic Healthcare Group, Dallas, for $1 billion.
OrNda HealthCorp, Nashville, Tenn., merged with American Healthcare Management, King of Prussia, Pa., and Summit Health, Burbank, Calif., in a $769 million deal.
Charter Medical Corp., Atlanta, bought 40 psychiatric hospitals from National Medical Enterprises, Santa Monica, Calif., for $180 million.
Champion Healthcare Corp., Houston, completed its $43 million merger with AmeriHealth, Atlanta. Champion, which now operates seven hospitals in six states, also has agreements to buy two hospitals in Florida and Ohio.
Community Health Systems, Houston, bought Hallmark Healthcare Corp., Atlanta, for $161 million.
It was dizzying to keep track. But imagine what it was like for hospitals that changed hands more than once.
For example, NME sold Ontario (Calif.) Community Hospital to Pacific Physicians Services, Redlands, Calif. That company in turn sold Ontario to Vencor, a Louisville-based chain of intensive-care hospitals.
Medical Center Enterprise (Ala.) or Abilene (Texas) Regional Medical Center could be justifiably shell-shocked by all the merger and acquisition activity. The hospitals had been owned by Humana, then were spun off as Galen Health Care hospitals in 1993. In September 1993, they were sold to Columbia Hospital Corp. In February 1994, they were merged into Columbia/HCA Healthcare Corp. And in May 1994 they were sold to Quorum Health Group, Brentwood, Tenn.
On the trivia side, of hospitals involved in mergers or acquisitions, five were named St. Francis, and 23 had the word "community" in their names.
On the following pages is a list of hospital deals, exclusive of hospital chain mergers. The list includes deals completed in 1994 as well as those that were started and are in progress.
The list comprises hospitals that were acquired by or merged with other hospitals, and hospitals that were merged into new or existing hospital parent corporations. It also contains deals in which a merger or acquisition is a possible outcome of negotiations or affiliation discussions.
The list excludes hospitals that are merely affiliating.
The list also excludes deals that were announced and later fell through, such as the proposed acquisition of Emory University System of Health Care, Atlanta, by Columbia/HCA.