For-profit Quorum Health Group has expanded its growing presence in Indiana by acquiring a not-for-profit hospital in close proximity to its two Fort Wayne, Ind., hospitals.
Quorum completed the purchase of Caylor-Nickel Medical Center, a 95-bed facility in Bluffton, Ind., on Nov. 30. Terms were not disclosed.
The Federal Trade Commission cleared the sale, and Brentwood, Tenn.-based Quorum did not need approval from the Indiana attorney general's office, said Quorum spokeswoman Shea Davis.
In the fiscal year ended Sept. 30, 1998, Caylor-Nickel lost $538,000 on revenues of $28.6 million.
Proceeds of the sale will be used to pay off debt, develop a retirement community and fund health projects through the hospital's not-for-profit foundation, according to the hospital.
Caylor-Nickel had been contemplating its future for the past three years and began accepting formal purchase bids in February.
The sale to Quorum was one of six proposals considered, said Caylor-Nickel spokeswoman LauraMarie Carmody, who declined to disclose the other bidders.
Not included in the sale is Caylor-Nickel Clinic, a 50-physician group practice.
The hospital, previously an independent facility, is located 25 miles south of Fort Wayne, where Quorum owns two other hospitals, 449-bed Lutheran Hospital of Indiana and 191-bed St. Joseph Hospital. In January, Quorum also bought 161-bed Kosciusko Community Hospital in Warsaw, Ind.
In total, five of Quorum's 22 acute-care hospitals are in Indiana.
Its subsidiary, Quorum Health Resources, manages two county hospitals in Indiana.