In the end, the not-for-profits had control. At least that was the fate of the first group of hospitals to be co-owned by for-profit and not-for-profit hospital joint ventures.
Last year a 3-year-old legal fight ended when Columbia/HCA Healthcare Corp. sold its 50% stake in a Florida hospital to not-for-profit Orlando (Fla.) Regional Healthcare System.
The $14.5 million sale of South Seminole Hospital in Longwood ended a tug of war over the 206-bed hospital between Nashville-based Columbia and Orlando Regional (Oct. 27, 1997, p. 46).
The battle erupted in 1994 when Columbia announced it would acquire Healthtrust, a competing hospital company that only two years earlier had entered into a joint venture with Orlando Regional to co-own South Seminole. With Healthtrust being gobbled up, Orlando Regional didn't want to be partners with Columbia, because the two had other competing hospitals.
Another former Healthtrust joint venture that Columbia inherited seems to be headed for demise.
Winston-Salem, N.C.-based Novant Health, an eight-hospital, not-for-profit system, is in line to buy out Columbia's 50% interest in a joint venture in 166-bed Presbyterian-Orthopaedic Hospital, Charlotte, N.C.
Novant is part of a not-for-profit consortium that has negotiated to buy pieces of Columbia's 45-hospital Atlantic group (May 25, p. 2).
The joint venture for the orthopedic hospital was first cleared by the IRS in May 1993, and at the time the parties involved were Healthtrust and Charlotte, N.C.-based Presbyterian Health Service Corp., which since has become part of Novant.
Midlands Community Hospital, Papillion, Neb., went back into the hands of a not-for-profit owner last year after a stint of co-ownership with a for-profit company.
Brentwood, Tenn.-based Quorum Health Resources sold its remaining 86% interest in the 160-bed hospital to the not-for-profit Alegent Health, Omaha, Neb.
In total, Alegent paid $15 million for Midlands. The acquisition was completed late last year (Dec. 8, 1997, p. 30).