Two national healthcare firms specializing in rural services are poised to make major forays into the rural hospital acquisition business.
Community Care of America, based in Naples, Fla., has signed an agreement that could lead to acquiring five rural hospitals. Meanwhile, New American Healthcare Corp. of Brentwood, Tenn., has attracted $50 million in equity from New York-based venture capital firm Welsh, Carson, Anderson & Stowe.
CCA signed a letter of intent and "consulting advisory services agreement" with Memorial Health Services, Adel, Ga., which owns and operates five rural hospitals in south central Georgia with nearly 280 acute-care beds. CCA said the agreement could lead to an acquisition of the hospitals, which had $33 million in revenues last year. Terms of CCA's deals weren't disclosed.
CCA also signed a definitive agreement to acquire Atlanta-based Southern Care Centers, which operates six long-term-care facilities in Georgia, one in Louisiana and one in Texas. "Both operations in Georgia will provide CCA platforms in which to implement our network strategy," said Kenneth Creasman, CCA's president and chief executive officer.
The recent deals will give CCA a half-dozen rural hospitals and 64 long-term-care facilities.
CCA had its initial public offering last year and a secondary offering of 3.1 million shares of common stock earlier this year, in which it expects to raise $48.1 million. In the secondary offering, the company is selling 2 million newly issued shares, while current stockholders are selling another 1.1 million shares.
New American also announced the completion of its management team. Joining Dana McClendon, senior vice president of finance, and Robert Martin, president and chief executive officer, are Craig Watson, senior vice president of operations, who had been CEO of 129-bed Gulf Coast Medical Center, Wharton, Texas; Timothy Hill, vice president and controller, who had been director of management reporting for Healthtrust; and Neil McLean, vice president of acquisitions and development, who had been Atlanta-based group vice president for Quorum Health Resources.