Not-for-profit Bartow (Fla.) Memorial Hospital has agreed to sell a 20% interest to Columbia/HCA Healthcare Corp. and enter a management contract with the 350-hospital chain. Under terms of the deal, Bartow Memorial will file a certificate of need later this year to build a 50-bed replacement hospital about five miles north of Bartow in Highland City, Fla. Columbia will pay for the hospital and assume an 80% interest. Bartow Memorial currently is managed by Quorum Health Resources, Brentwood, Tenn. Columbia and Quorum officials didn't return phone calls. Last year, Bartow's other acute-care hospital, Polk General Hospital, closed. If Bartow Memorial's CON is approved, Bartow would be left without a hospital. There are six hospitals in Polk County, including Bartow Memorial.
A board member of Coastal Physician Group resigned, citing a conflict of interest. Richard Janeway, M.D., said his employer, the Bowman Gray School of Medicine at Wake Forest University in Winston-Salem, N.C., has a significant financial interest in an organization that will bid to acquire one or more businesses from Coastal. He didn't indicate which business the medical school might want, but among the businesses Coastal is trying to sell are 18 clinics with 50 physicians and a PPO in North Carolina. Coastal, based in Durham, N.C., said it will announce a replacement nominee to run for the vacant seat at its 1996 annual meeting.
James W. Swift, who assumed leadership at Unity Health System in St. Louis only last August, is retiring as chief executive officer to return to Springfield, Mo. Previously, he had been CEO of St. John's Regional Health Center in Springfield for 16 years. Both the Unity system, which was formed through the union of three large St. Louis hospitals, and St. John's Regional are part of Sisters of Mercy Health System-St. Louis. Swift, 50, said his wife and seven children missed Springfield too much to make it worthwhile for him to continue at Unity. Ronald B. Ashworth, executive vice president of Sisters of Mercy, will serve as interim CEO of Unity until a search can be undertaken in the fall.
Naples, Fla.-based Community Care of America reported a net loss of $10.6 million, or $1.41 per share, for the second quarter ended June 30. Revenues were $32.4 million. Because CCA went public last August, year-ago comparisons aren't applicable. The loss was expected, given the rural healthcare service company's recent announcement that it would take a second-quarter pretax charge of $17.2 million related to several restructurings. CCA terminated a management agreement with its Sandy River, Maine, facilities and didn't include any management fee income. For the six months, CCA had a net loss of $9.2 million, or $1.25 per share, on revenues of $61.4 million. CCA owns, leases or manages five rural hospitals and 55 long-term-care facilities in eight states.