HealthMont is the latest hospital company to draw upon the purse strings and expertise of Nashville's healthcare elite.
The company was launched recently when its founders, two officials from Nashville-based New American Healthcare Corp., received U.S. Bankruptcy Court approval to buy four hospitals from New American, which filed for protection under Chapter 11 last April (July 17, p. 4).
One of HealthMont's financial backers is R. Clayton McWhorter, former chairman of HCA-The Healthcare Co. and founder of rural hospital company HealthTrust, who has assisted many healthcare start-ups through his venture capital firm, Clayton Associates.
Also on HealthMont's board are Thomas Chaney, chairman, and Richard Ragsdale. They founded Community Health Systems in 1985.
HealthMont agreed to buy the four hospitals, in addition to New American's corporate assets, for $10.5 million plus working capital in a deal expected to close in August. The hospitals are 49-bed Dolly Vinsant Memorial Hospital, San Benito, Texas; 77-bed Eastmoreland Hospital and 123-bed Woodland Park Hospital, Portland, Ore.; and 155-bed Memorial Hospital of Adel (Ga.)
The company also wanted to buy 146-bed Puget Sound Hospital, Tacoma, Wash., but was outbid by Pierce County, which won court approval to buy the hospital with financing from Tacoma-based MultiCare Health System.
Timothy Hill, HealthMont's chief executive officer and New American's chief financial officer, said HealthMont got a bargain on the four hospitals given that they have combined annualized net revenue of $65 million. Collectively, the four were slightly profitable last year.
HealthMont should not be confused with Healthstar, a company recently founded by former New American CEO Robert Martin.