Community Health Systems, the Brentwood, Tenn.-based hospital chain that went public last month, completed its purchase of a once-troubled Arizona hospital on July 1.
The sale was one of more than a dozen hospital ownership changes that hit the industry earlier this month (July 10, p. 2).
CHS bought 90-bed Western Arizona Regional Medical Center in Bullhead City from Baptist Hospitals and Health Systems, based in Phoenix, for $66 million plus an undisclosed amount of working capital.
Neither system disclosed the financial terms, but they were contained in a prospectus CHS filed with the Securities and Exchange Commission June 9 in preparation for its initial public offering.
HCFA decertified the hospital for six months in November 1997 after anonymous complaints about quality of care at the facility.
Between then and May 1998, HCFA barred the hospital from receiving reimbursements from Medicare and Medicaid.
HCFA's action was also prompted by a patient death at the hospital because of a drug overdose and the removal of a healthy kidney from a patient who had kidney cancer. HCFA reinstated the hospital in both programs after conducting a follow-up inspection in May 1998.
CHS' Arizona acquisition is its fifth this year. In March, the company bought 105-bed Southampton Memorial Hospital in Franklin, Va. In April, it acquired 74-bed Lakeview Community Hospital in Eufaula, Ala., and 50-bed Northeastern Regional Hospital in Las Vegas, N.M. In June, it acquired 82-bed South Baldwin Regional Medical Center in Foley, Ala. All four were bought for a total of $56 million.