Columbia/HCA Healthcare Corp. signed a letter of intent to lease Grossmont Hospital in La Mesa, Calif. The hospital is leased to Sharp HealthCare, which signed a 50-50 venture with Columbia earlier this year. After San Diego-based Sharp signed that agreement, Grossmont's board threatened to sue to either join the Columbia deal or be allowed to terminate the Sharp lease (April 8, p. 8). Under the proposed agreement, 465-bed Grossmont will be leased for 30 years by a partnership of Sharp and Columbia. Grossmont is owned by the Grossmont Hospital District Board.
MedPartners/Mullikin, Birmingham, Ala., and its hospital-based contracting subsidiary, Team Health, agreed to acquire Emergency Professional Services in Cleveland. Terms of the transaction weren't disclosed. EPS provides emergency department contract management, in-house physician services and staffing to 16 hospitals and six urgent-care centers in northern Ohio and western Pennsylvania. The professional staff includes 115 physicians. The deal is expected to close in September and will be accounted for as a pooling of interests. MedPartners has a multispecialty group and an orthopedic group in the Cleveland market.
Beverly Enterprises, the nation's largest long-term-care provider, reported net income climbed 18% to $16.9 million, or 17 cents per share, in the second quarter ended June 30, compared with $14.3 million, or 14 cents per share, in the year-ago quarter. Revenues rose 1% to $802 million. For the six months, net income was $30.7 million, or 31 cents per share, compared with $30.9 million, or 31 cents per share, in the year-ago period. Revenues rose 1% to $1.6 billion. Fort Smith, Ark.-based Beverly operates more than 700 facilities nationwide, including nursing homes, long-term acute-care hospitals and retirement communities.
Rush System for Health last week completed its affiliation with Riverside HealthCare, parent of 314-bed Riverside Medical Center in Kankakee, Ill., 40 miles south of Chicago. Riverside is the ninth hospital to join the Chicago-based health system, which now boasts more than $1.5 billion in assets and annual net patient revenues of nearly $800 million, according to financial data compiled from MODERN HEALTHCARE's 1996 Multi-unit Providers Survey and HCIA, a Baltimore-based healthcare information company. Rush System for Health had net operating income of $5.8 million on $775.5 million in net patient revenues in 1995. Rush executives said they want their system to be the healthcare provider for 2 million people in the Chicago area and need 10 to 12 hospitals to accomplish that.