Less than a month after becoming a privately held company, Community Health Systems is making its first acquisition.
The Brentwood, Tenn.-based rural hospital company agreed to buy Dynamic Health, a small rural hospital company based in Tampa, Fla.
"The board made the decision that this was in their best interests," said John Silver, Dynamic's chief executive officer. Dynamic operates five hospitals in three states, and the acquisition would boost Community's chain to 43 hospitals. Last month, Community was purchased by Forstmann Little & Co., a New York-based investment firm, for $1.4 billion (July 15, p. 12).
Dynamic was founded in 1992 by Silver and Richard Pajot, two former American Medical International executives. The company received venture capital from Continental Equity Capital Corp., a unit of Continental Bank Corp., and Shamrock Investments, a Los Angeles-based investment banking firm.
Dynamic's most recent acquisitions were 66-bed Chesterfield General Hospital, Cheraw, S.C., and 60-bed Marlboro Park Hospital, Bennettsville, S.C. Those deals were financed with $22.5 million from American Health Properties, a Denver-based real estate investment trust.