How much is a profitable 248-bed hospital worth? Three nursing homes, an assisted-living facility and a little undisclosed cash-especially if it gets you another acute-care monopoly.
The Mishawaka, Ind.-based Sisters of St. Francis Health Services is swapping three long-term-care facilities and an assisted-living complex it owns for a 248-bed acute-care hospital in Crown Point, Ind.
The hospital, St. Anthony Medical Center, is owned by the Highland, Ind.-based Franciscan Sisters of Chicago Service Corp.
In 1996, St. Anthony Medical Center enjoyed a $5.7 million profit on revenues of about $95.6 million, according to the latest figures available from HCIA, a Baltimore-based healthcare investment research company.
The healthcare systems last week inked a deal to make the trade. The swap is expected to be complete by year-end.
St. Anthony will bring to nine the number of hospitals the Sisters of St. Francis owns. The deal will make the Sisters of St. Francis the sole hospital provider in Crown Point, according to the American Hospital Association directory.
The Sisters of St. Francis already owns the only acute-care facilities in the northwest Indiana cities of Hammond, Dyer and Michigan City. It also owns the sole facility in nearby Chicago Heights, Ill.
The system is filing for federal antitrust clearance, said Kevin Leahy, president and chief executive officer.
Leahy said the Sisters of St. Francis doesn't expect problems because it competes with hospitals in the Chicago area and in Gary, Merrillville and Valparaiso, Ind.
The Sisters of St. Francis and the Franciscan Sisters have been talking about a deal for about 18 months, Leahy said.
The deal includes an undisclosed amount of cash to be paid to the Franciscan Sisters, he said.
The agreement lets both systems concentrate on a single aspect of healthcare delivery: acute care for the Sisters of St. Francis and long-term care for the Franciscan Sisters.
The Franciscan Sisters already operates seven other long-term-care facilities, in Illinois, Indiana and Ohio.
The four post-acute-care facilities the Franciscan Sisters will acquire are in Illinois, Indiana and Kentucky.