WellStar Health System, the Marietta, Georgia-based not-for-profit health system, is buying its way to become the state’s largest healthcare provider. On December 1, the hospital chain and for-profit hospital chain Tenet Healthcare (NYSE: THC) announced their agreement to exchange five Atlanta metro area hospitals for $575 million upfront, plus the assumption of $86 million in debt related to the lease of the 158-bed North Fulton Hospital in Roswell, Georgia. The other hospitals included in the sale are the 466-bed Atlanta Medical Center (Atlanta), its 210-bed South Campus (East Point), the 160-bed Spalding Regional Hospital (Griffin) and the 10-bed Sylvan Grove Hospital (Jackson). All will become not-for-profit entities following the close of the transaction.
The total transaction price of $661 million works out to $658,367 per bed for the group, and 0.9x revenue reported as of December 31, 2014. The only mystery left is whether the Federal Trade Commission will let this Georgia hospital deal proceed. Stay tuned.
