w*Santa Barbara, Calif.-based Tenet Healthcare Corp. agreed to merge its 76 hospitals with 50 hospitals operated by Nashville, Tenn.-based OrNda HealthCorp. The deal, valued at $3.1 billion involves a $1.8 billion stock swap and Tenet's assumption of $1.3 billion of OrNda's debt. The combined company will generate about $8.5 million in annual revenues and operate 126 hospitals in 22 states. The deal is expected to close in March.
w*Magellan Health Services, Atlanta, was formed after Charter Medical Corp., which owns 103 psychiatric hospitals, acquired a 51% stake in Green Spring Health Services, Columbia, Md., for $73.2 million in cash and stock. Green Spring manages mental health and substance-abuse treatment benefits for 12 million people.
w*Catholic Health Initiatives, a Denver-based national Roman Catholic system of 63 hospitals, was formed through the $4 billion merger of Sisters of Charity Health Care Systems, Cincinnati; Catholic Health Corp., Omaha, Neb.; and Franciscan Health System, Aston, Pa.
w*Forstmann Little & Co., a New York buyout firm, acquired Community Health Systems, Brentwood, Tenn., for about $1.1 billion. The new Community Health Systems became a privately held entity that owns and operates 38 hospitals in 18 states. In addition, Chase Manhattan Corp. agreed to provide $900 million in bank financing to make additional acquisitions.
w*Paracelsus Healthcare Corp., Pasadena, Calif., merged with Champion Healthcare Corp., Houston, to form the nation's sixth-largest investor-owned hospital company. It will have annual revenues of $700 million with 31 hospitals in 11 states.
w*Nashville-based Behavioral Healthcare Corp. acquired 25 psychiatric hospitals from Las Vegas-based Community Psychiatric Centers, now called Transitional Hospitals Corp., for $60 million in cash and $70 million in stock.
w*Community Health Systems acquired Tampa, Fla.-based Dynamic Health, a privately held investor-owned system of five rural hospitals in Louisiana, South Carolina and Texas. With combined annual revenues of $94 million, Dynamic operates 104-bed Cleveland (Texas) Regional Medical Center; 65-bed Northeast Medical Center, Bonham, Texas; 151-bed River West Medical Center, Plaquemine, La; 66-bed Chesterfield General Hospital, Cheraw, S.C.; and 60-bed Marlboro Park Hospital, Bennettsville, S.C.
w*Nashville-based NetCare Health Systems, formed in 1995 by former Healthtrust executives that included Michael Koban Jr., NetCare's president and chief executive officer, acquired Southern Health Corp., which controlled five hospitals with 275 beds and four nursing homes with 338 beds in Georgia and Mississippi. The hospitals acquired were Chatuge Regional Hospital, Hiawassee, Ga.; Chestatee Regional Hospital, Dahlonega, Ga.; Mountainside Medical Center, Jasper, Ga.; North Georgia Medical Center, Ellijay; and Trace Regional Hospital, Houston, Miss.
w*Principal Hospital Co., Brentwood, Tenn., signed a letter of intent to acquire Portland, Ore.-based Brim's healthcare group, which owned five hospitals and managed another 53. The transaction was part of Brim's decision to split its company. The other part of the deal calls for Brim to merge its senior-living facilities into a new company, Encore Senior Living, being formed by Chicago's Pritzker family, which owns Hyatt hotels.
w*Behavioral Healthcare acquired five psychiatric hospitals from Horizon Mental Health Management, Denton, Texas, for $10 million in cash and a note for $2 million.
w*King of Prussia, Pa.-based Universal Health Services acquired four psychiatric hospitals from First Hospital Corp., Norfolk, Va., for $33.5 million.