RegionalCare Hospital Partners, a startup hospital company, has signed a letter of intent to purchase the 135-bed stand-alone Ottumwa (Iowa) Regional Health Center, which would make the southeastern Iowa facility the only for-profit acute-care hospital in the state.
RegionalCare seeks to buy Iowa hospital
The purchase, if approved by regulators and both parties after a 90-day due diligence period, would also become Brentwood, Tenn.-based RegionalCare's first acquisition since the company's formation this summer. Iowa has not had a for-profit community hospital since 2003, a spokesman for the Iowa Hospital Association said.
The purchase price will not be disclosed until after the due diligence period. Some of the proceeds will be rolled into a multimillion-dollar not-for-profit community foundation, a RegionalCare news release says. The for-profit operator is backed up private equity group Warburg Pincus and run by long-time healthcare executives.
For-profit hospital ownership has been on the rise in recent years. In 2008, the most recent year for which comprehensive data are available from the American Hospital Association, the number of for-profit hospitals in the U.S. jumped by 12% over the prior year, while the number of not-for-profits remained flat.
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