The Federal Trade Commission has approved the sale of a Columbia/HCA Healthcare Corp. hospital in Little Rock, Ark., to fast-growing Catholic Health Initiatives, a Denver-based Roman Catholic system.
When the sale closes, which is expected shortly, CHI will own 68 hospitals nationwide. That doesn't include the five more it will co-own in Iowa under a separate mergerlike partnership also announced last week (See story below).
In Arkansas, CHI's St. Vincent Health System in Little Rock will acquire 308-bed Columbia Doctors Hospital and three Columbia outpatient clinics there for an undisclosed amount. St. Vincent's flagship hospital, 570-bed St. Vincent Infirmary Medical Center, sits right across the street from the Columbia facility.
Doctors Hospital earned $5.1 million on revenues of $66.5 million in 1996, according to the latest data from HCIA, a Baltimore-based healthcare information company.
Scott Mosley, vice president of marketing for St. Vincent, said Columbia approached his system several months ago about a purchase of Doctors Hospital. He said the circumstances were right for both Columbia and St. Vincent to do the deal.
The two sides announced the proposed sale last November (Nov. 17, 1997, p. 4).
St. Vincent will change the Columbia facility's name to St. Vincent Doctors Hospital. The three clinics will be renamed St. Vincent Family Clinic.
Columbia Doctors Hospital was part of 42-hospital Columbia's Pacific Group, which is expected to be spun off as part of the chain's reorganization plan announced last November.