The Federal Trade Commission has cleared the pending sale of Neponset Valley Health System in Norwood, Mass., to Columbia/HCA Healthcare Corp. The deal still faces a review by the Massachusetts attorney general's office. Such reviews usually include at least one public hearing plus an independent appraisal of the facilities' valuation, said Dan Miller, president of Columbia's Northeast division. Publicly announced in April, the agreement calls for the Nashville-based healthcare chain to pay $58 million plus another $15 million in capital improvements (Feb. 3, p. 17). Neponset includes 150-bed Norwood Hospital, 182-bed Southwood Community Hospital in Norfolk, Mass., and several other healthcare service units.
The Federal Trade Commission last week gave antitrust clearance to East Texas Medical Center Regional Health System's lease agreement with 123-bed Nan Travis Hospital in Jacksonville, Texas. The Tyler-based not-for-profit system will lease Nan Travis for five years, committing $31 million to the hospital and its related projects (May 19, p. 25). If the terms of the lease have been met at the end of five years, it will become a merger.
Tenet Healthcare Corp. last week completed its $133.5 million acquisition of Deaconess-Incarnate Word Health System in St. Louis. It took possession of three acute-care hospitals-330-bed Deaconess Central Hospital, 92-bed Deaconess West Hospital and 276-bed Incarnate Word Hospital-and numerous related operations. Proceeds from the sale, which was announced in January, will be shared equally by the Deaconess Foundation and Incarnate Word Health System (Jan. 27, p. 14). The amount to be disbursed to the charities has not been made public yet. At the request of Incarnate Word Health System of San Antonio, Incarnate Word Hospital will be renamed Lafayette-Grand Hospital. Santa Barbara, Calif.-based Tenet doesn't anticipate any layoffs or closings, and current management will remain in place.
Columbia/HCA Healthcare Corp.'s scheduled June 30 close of its $1.1 billion acquisition of Value Health hit a snag last week when a Massachusetts Superior Court judge in Boston issued a preliminary injunction over a disputed state behavioral health contract. Norfolk, Va.-based FHC Options, which co-manages with Value Health a contract covering 430,000 Medicaid and state mental health consumers, filed suit to delay the deal. Citing Columbia's conflicts as a provider in the state, FHC reportedly wants Value Health, an Avon, Conn.-based benefits management company, to divest its share of their partnership to manage the contract. A date hasn't been set to hear the case, a Value Health spokeswoman said.
HBO & Co., an Atlanta-based healthcare systems and services company, completed its acquisition of Enterprise Systems, a Wheeling, Ill.-based developer of information systems for materials management and resource scheduling, in a stock swap valued at about $272 million. The deal was proposed in March (March 17, p. 4). At closing, about 3.8 million shares of HBO & Co. stock were issued for the approximately 8.3 million shares of Enterprise Systems outstanding.
The Federal Trade Commission has given antitrust clearance to the proposed merger of 184-bed Germantown Hospital and Medical Center and Albert Einstein Healthcare Network, both of Philadelphia. A Pennsylvania state court must approve the handling of the assets in Germantown's charitable foundation before the deal can close, an Albert Einstein spokeswoman said. That's not expected before Sept. 1. Separately, negotiations continue on terms for Albert Einstein to join Jefferson Health System, Philadelphia. A definitive agreement and a consummated deal are expected this fall, an Einstein spokeswoman said.