Big hospital divestiture campaigns by the struggling for-profit systems Tenet Healthcare Corp. and Community Health Systems are providing competitors with a rare opportunity to snap up valuable assets.
But the properties aren't going for cheap.
The 30 hospitals that Franklin, Tenn.-based CHS has sold or agreed to sell in recent months are fetching a premium price on average of 10 to 12 times earnings before interest, taxes, depreciation and amortization, CHS senior executives have said.
In July, HCA paid $750 million to buy three Tenet hospitals in Houston to boost its presence there to 13 hospitals. That was about 9.5 times the $80 million in annual EBITDA the three hospitals were generating.