Three years after discussions began on a possible deal, Columbia/HCA Healthcare Corp. finally took control of 309-bed University Hospitals in Oklahoma City.
Columbia's 50-year lease of the two-hospital university system took effect Feb. 5. Under the agreement, Columbia will pay a one-time fee of $19.2 million to the newly created University Hospitals Trust for the lease. In addition, Columbia will make a one-time payment of $10 million as well as four annual installments of $2.7 million to the University of Oklahoma in support of medical education and research.
The trust will reap the first $9 million of each year's pre-tax earnings. Columbia will earn the next $30 million. Any earnings above that will be split 70-30, with Columbia earning the lion's share.
For its fiscal year ended June 30, 1997, University Hospitals posted a net loss of $8.7 million on revenues of $195 million.