Principal Hospital Co. is beginning to separate itself from the growing pack of start-up nonurban hospital companies after closing its acquisition of Portland, Ore.-based Brim's healthcare group late last month.
The move positions Principal to become more attractive to its 53 managed hospitals, which may be looking to be owned or leased. Brim hadn't acquired a hospital in three years, although executives said they were in negotiations for lease agreements of two rural hospitals it manages.
"We will have substantially more capital and a strong drive to develop partnerships with communities," said Steve Taylor, the longtime president of Brim's healthcare division.
Taylor will be senior vice president of acquisitions and development and will report to Martin Rash, president and chief executive officer of Brentwood, Tenn.-based Principal. Richard Gore will continue as Principal's executive vice president and chief financial officer. Principal also has hired John Rutledge as senior vice president and chief operating officer. Rutledge had been regional vice president/group director for Community Health Systems, also based in Brentwood.
Rash formed Principal early last year through a partnership with Chicago investment firm Golder, Thoma, Cressey, Rauner. In just 11 months in business, Principal now owns seven hospitals and manages 53 in 23 states (Dec. 9, 1996, p. 4). Before the deal with Brim, Principal owned just two hospitals.
"With the merger of Principal and Brim, we bring ready access to capital and expertise to nonurban markets that was not available before," Rash said.
The companies didn't disclose the terms of the acquisition.