Major corporate activity
Behavioral Healthcare Corp., Nashville, acquired five psychiatric hospitals from Sterling Healthcare Corp., Bellevue, Wash., for undisclosed terms.
90-hospital Charter Behavioral Health Systems became a privately held 50-50 joint venture of Magellan Health Services, Atlanta, and Crescent Real Estate Equities Co., Fort Worth, Texas, in a $480 million sale-leaseback arrangement.
Eastern Mercy Health System, Radnor, Pa., Franciscan Sisters of Allegany Health System, Tampa, Fla., and Sisters of Providence Health System, Holyoke, Mass., merged their 25 hospitals into Catholic Health East.
Tenet Healthcare Corp., Santa Barbara, Calif., merged with OrNda HealthCorp, Nashville, in a $3.1 billion deal involving 126 hospitals.
State by state
Health Management Associates, Naples, Fla., acquired 66-bed Stringfellow Memorial Hospital, Anniston, for undisclosed terms.
Tenet and three-hospital Eastern Health System, Birmingham, agreed to form Alabama Health Services, pending a ruling in mid-1998 on Eastern's tax status by the Internal Revenue Service. Tenet would own a 68% stake and manage three hospitals with 848 beds. Eastern Health would own a 32% stake and continue operating separately its 57-bed hospital in Oneonta.
UAB Health System, Birmingham, acquired 23-bed Eye Foundation Hospital, also of Birmingham, for $18.5 million.
Community Health Systems, Brentwood, Tenn., signed an 18-year lease of 34-bed Payson (Ariz.) Regional Medical Center for undisclosed terms.
570-bed St. Vincent Infirmary Medical Center, Little Rock, agreed to buy 308-bed Columbia Doctors Hospital, also in Little Rock, and three family practice clinics from Columbia/HCA Healthcare Corp., Nashville, for undisclosed terms in a deal expected to close early this year.
Health Management Associates acquired
125-bed Southwest Hospital, Little Rock, for undisclosed terms.
Catholic Healthcare West, San Francisco, acquired 225-bed Marian Medical Center, Santa Maria, and 96-bed St. Francis Medical Center of Santa Barbara for undisclosed terms.
Cedars-Sinai Medical Center, Los Angeles, agreed to a 20-year lease of 135-bed Century City Hospital and 291-bed Midway Hospital Medical Center, both of Los Angeles, from Tenet. As part of the agreement, Cedars and Tenet plan a joint operating company for service contracts and managed-care ventures.
Columbia agreed to a 30-year lease of 142-bed Fallbrook (Calif.) Hospital District for $4.4 million upfront and other considerations. Separately, Columbia acquired 75% of the corporation operating 254-bed Riverside (Calif.) Community Hospital for $54.4 million.
El Camino Healthcare District, Mountainview, won control of 290-bed El Camino Hospital in a lawsuit breaking Camino Healthcare's lease of the hospital.
256-bed John Muir Medical Center, Walnut Creek, and 209-bed Mount Diablo Medical Center, Concord, merged.
Legacy Health System, Portland, Ore., acquired Baldwin Park (Calif.) Medical Center for undisclosed terms.
21-physician Lincoln Community Medical Group, Bellflower, leased 65-bed Bellwood General Hospital, Bellflower, and 55-bed Orange County Community Hospital of Buena Park from Paracelsus Healthcare Corp., Houston, for undisclosed terms.
Pacific Health, Long Beach, leased 117-bed Tustin (Calif.) Medical Hospital from G&L Realty Corp. for undisclosed terms.
Two-hospital Palomar Pomerado Health System, Escondido, agreed to form a joint venture with six-hospital ScrippsHealth, San Diego. Public approval of the hospital district's deal is required, and a vote is expected in the second half of 1998.
Province Healthcare Co., Brentwood, Tenn., acquired 39-bed Needles (Calif.) Desert Communities Hospital for undisclosed terms.
Sharp HealthCare, San Diego, acquired 150-bed Mesa Vista Hospital, San Diego, from Vista Hill Foundation in return for assuming $7.7 million in Vista Hill debt.
Tenet agreed to buy Sharp's 91-bed Murrieta campus for $29 million. Separately, Tenet entered a 30-year lease of 286-bed Brookside Hospital, San Pablo, from West Contra Costa Healthcare District for $18 million upfront. It also entered a 30-year lease of 348-bed Desert Hospital, Palm Springs, from Desert Hospital District for undisclosed terms and acquired 99-bed Pioneer Hospital, Artesia, from MedPartners, Birmingham, Ala., also for undisclosed terms. Finally, Tenet agreed to acquire 409-bed Queen of Angels-Hollywood Presbyterian Medical Center, Los Angeles, for $86.4 million in cash and other interests.
University of California San Francisco Medical Center and Stanford University Health Services, Palo Alto, merged into three-hospital UCSF Stanford Health Care.
Vencor, Louisville, Ky., acquired 56-bed Thompson Memorial Medical Center, Burbank, for undisclosed terms and renamed it Vencor Hospital-Burbank.
Vista Hospital Systems, San Francisco, acquired 124-bed French Hospital Medical Center, San Luis Obispo, from Tenet for undisclosed terms.
394-bed Saint Joseph Hospital, Denver; 335-bed Lutheran Medical Center, Wheat Ridge; and Primera Healthcare, a 120-physician primary-care network sponsored by the hospitals, formed Exempla Healthcare through a merger and joint operating agreement.
167-bed Greenwich (Conn.) Hospital completed a mergerlike affiliation with two-hospital Yale New Haven (Conn.) Health System.
289-bed St. Vincent's Health Services, Bridgeport, and 241-bed Stamford (Conn.) Health System acquired 147-bed St. Joseph Medical Center, Stamford, from the Roman Catholic Archdiocese of Bridgeport for $12 million. St. Vincent's holds a 51% share in St. Joseph, and Stamford manages it.
District of Columbia
Universal Health Services, King of Prussia, Pa., acquired 80% of a joint venture running 295-bed George Washington University Hospital for $125 million.
Adventist Health System's 1,406-bed Florida Hospital, Orlando, began negotiations to acquire two-hospital Regional Healthcare, Brooksville, and 424-bed University Community Hospital, Tampa, in separate deals for undisclosed terms.
Island Trust, a private investor group, acquired 112-bed Larkin Hospital, South Miami, for a reported $11 million.
Orlando (Fla.) Regional Health Care System acquired the outstanding 50% of 206-bed South Seminole Hospital, Longwood, from Columbia for $14.5 million.
807-bed Orlando (Fla.) Regional Medical Center acquired a 49% interest in 414-bed Leesburg (Fla.) Regional Medical Center from Quorum Health Group, Brentwood, Tenn., for $67.5 million. Separately, it announced plans to acquire 210-bed Parrish Medical Center, Titusville, pending public approval in a referendum.
Six-hospital Shands HealthCare, Gainesville, 160-bed Methodist Medical Center, Jacksonville, and 518-bed University Medical Center, Jacksonville, began negotiations to create a northeast Florida system.
Tenet and Morton Plant Mease Health Care, Dunedin, formed a for-profit partnership overseeing 122-bed North Bay Medical Center, New Port Richey, for undisclosed terms. Tenet also acquired 286-bed North Shore Medical Center, Miami, for undisclosed terms.