Perhaps Hospital Partners of America should consider moving its headquarters from Charlotte, N.C., to Texas. Pretty soon, that will be the only state in which the privately held company operates hospitals.
HPA said last week that it has closed one hospital and put another hospital up for sale. If a sale of 238-bed Shasta Regional Medical Center, Redding, Calif., is completed, that would leave the privately held company with four hospitals, two owned and two leased, in Austin, Dallas and Houston. HPA announced the closing of the two-campus River Oaks Hospital in Houston and transferred all patients from the facilities last week, spokesman Andy Brimmer said.
Both Shasta Regional and River Oaks were acquired in separate deals from Tenet Healthcare Corp., Dallas.
Brimmer said the decisions were a matter of portfolio management for HPA based on local market conditions. Brimmer declined to elaborate on HPAs strategy for the future. HPA recently appointed a new chief executive officer, Jeff Crudele, to replace Todd Johnson, who had been with the company since at least 2002, when it was still known as OrthoNeuro Corp. In September 2003, OrthoNeuro broadened its focus to general acute-care hospitals and became HPA. On the same day, it announced its acquisition of River Oaks from Tenet. OrthoNeuro was founded by Steve Puckett, who also founded heart-hospital operator MedCath Corp., Charlotte.
Crudele is a veteran of Nashville-based HCA, working for the company in Florida, as vice president of operations for the Georgia division and as chief financial officer of its Eastern group of hospitals. Crudele did not return a call seeking comment.
In a news release, HPA said it is closing River Oaks because it has not been able to improve the financial performance of the facility since acquiring it in 2003. River Oaks lost $19.9 million on net revenue of $307.8 million in the three years ended Sept. 30, 2007, according to the American Hospital Directory. Most River Oaks employees have been transferred to HPAs other Houston location, 419-bed St. Joseph Medical Center, Brimmer said.
Shasta Regional also was losing money but the trend line was pointing up, Brimmer said. HPA bought the former Redding Medical Center in 2004. The hospital lost $44.7 million on net revenue of $350.6 million in the three years ended Sept. 30, 2007, according to the AHD. More than 60% of those losses came in fiscal 2005, the first year of HPAs ownership.