Iasis Healthcare, an investor-owned hospital chain based in Franklin, Tenn., is leaving the Las Vegas market and selling its hospital there to Prime Healthcare Services.
Ontario, Calif.-based Prime will purchase 177-bed North Vista Hospital in North Las Vegas for undisclosed terms. The transaction is expected to close by the end of the year.
Prime has owned St. Mary's Regional Medical Center in Reno, Nev., since 2012 but the deal for North Vista would mark its entry into the more populous part of the state. It also reflects an aggressive national growth strategy over the past two years. Earlier this month, Prime forged a deal to acquire Riverview Regional Medical Center in Gadsden, Ala., from Community Health Systems.
Iasis, meanwhile, has been pruning its portfolio to focus on its core markets, last year selling three Florida hospitals to HCA. It also is boosting investments in Health Choice, its managed-care business.
For the third quarter, Iasis reported a $2.7 million pre-tax loss on $476.1 million in revenue in its acute-care business, compared with $1.8 million in pre-tax income on $461.3 million in revenue during the prior-year period.
In contrast, Health Choice remained profitable, earning $7.5 million in pre-tax income on $200.3 million in revenue. While that was behind the $7.7 million in pre-tax income during the prior year period, Iasis spent about $2 million to form a new third-party administration and management services business.
Membership at Health Choice increased 14.5% and revenue was up 43.3%.
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