LEBANON, Va.Russell County Medical Center was sold by Community Health Systems, Franklin, Tenn., to Mountain Health States Alliance, a not-for-profit corporation headquartered in Johnson City, Tenn. The sale price was approximately $45 million. The closing of the transaction, which included the sale of 78-bed Russell County Medical, became effective on Feb. 1. Mountain States Health Alliance continues to expand its network of hospitals. Last year, two Virginia hospitals: 60-bed Norton (Va.) Community Hospital and Dickenson Community Hospital, a 15-bed facility in Clintwood, reached an agreement to join the Tennessee not-for-profit.
BATON ROUGE, La.Home health nursing company Amedisys entered into a stock purchase agreement to acquire HMA Holdings, the Lexington, Ky.-based holding company that operates Family Home Health Care and Comprehensive Home Healthcare Services, for about $43 million in cash. A spokesman for Amedisys says HMA operates 21 home health locations in Kentucky and three locations in Tennessee under the Family Home and Comprehensive Home names.This acquisition expands our geographic footprint to 36 new counties in the certificate-of-need state of Kentucky, said William Borne, chief executive officer of Amedisys, in a company news release. Amedisys said it will pay $36 million in cash and a $7 million note payable over two years. Subject to customary closings and regulatory approval, the deal is expected to close in the first quarter of 2008, but is not expected to add to earnings this year, the company said. Amedisys reported in a Securities and Exchange Commission filing that it owned and operated 311 Medicare-certified home health agencies and managed the operations of four other Medicare-certified home health agencies in 30 states as of Sept. 30, 2007. The company also owned and operated 27 Medicare-certified hospice agencies and managed two others in 13 states during that same period.
ATLANTAChildren's Healthcare of Atlanta filed a certificate of need with the Georgia Department of Community Health, seeking permission to move forward with a renovation project at its Hughes Spalding campus. Children's expects to receive an answer by the state department by March 20, according to a spokesman. The 427-bed hospital is bringing an older building on the Hughes Spalding site up to contemporary design and engineering standards, and has raised $34 million of an estimated $43 million needed for the project. Children's Healthcare said it hopes to break ground at the facility this spring and complete construction by late 2009. Hughes Spalding will focus on primary care, sickle cell disease, asthma and child protection and has already opened a cancer and blood disorders center in partnership with Emory University and Morehouse School of Medicine.
SAN ANTONIOMedCath Corp., Charlotte, N.C., and its physician partners said they will double the number of inpatient beds at Texsan Heart Hospital to expand the facilitys cardiovascular facilities. Totaling about $10.75 million, the project will convert about 36,130 square feet of space into 60 inpatient beds in a new section that is expected to open in the fall of 2008. MedCath also said it will increase its ownership stake in the hospital to 66.57%, up from the 51% stake it now holds. The cost-effective build-out of shelled space in selected markets is one of the key elements of our strategic growth plan, said O. Edwin French, MedCaths president and chief executive officer, in a news release about the project. This expansion will provide needed capacity for our growing cardiovascular program as well as provide vital additional high-acuity services to the San Antonio area. Opened in January 2004, Texsan Heart has four operating suites, four cardiac catheterization laboratories, a 10-bed, day-patient area and an emergency department. MedCath owns an interest in and operates 10 hospitals in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota and Texas. The company also provides diagnostic and therapeutic facilities in various states.
LINCOLNTON, N.C.North Carolina regulators approved an $85 million certificate of need to build a replacement hospital for Carolinas Medical Center-Lincoln, according to the hospitals parent, Carolinas HealthCare System. Site work in preparation for construction of the 101-bed hospital may begin as soon as next month, and the hospital may open as soon as the fourth quarter of 2010. Once the new hospital is open, Carolinas plans to return the old hospitals buildings and grounds to Lincoln County, which sold the hospital to Carolinas in 2006 in return for the Charlotte-based systems pledge to spend up to $100 million to build a replacement.
GREENSBORO and WINSTON-SALEM, N.C.Moses Cone Health System, Greensboro, and Wake Forest University Baptist Medical Center, Winston-Salem, said that they have formed an alliance to explore ways to lower costs and improve quality, the systems said in a joint news release. The two not-for-profit systems will continue to operate independently. They have formed a joint venture, the HealthCare Alliance, through which they will collaborate, and other providers, including community hospitals, outpatient facilities and physician practices, may eventually join the alliance. The systems have worked together for more than 25 years on education for healthcare professionals, regional trauma services and information technology.