After months of deliberations, for-profit HCA Healthcare (NYSE: HCA) signed a definitive agreement to acquire western North Carolina’s largest health system, not-for-profit Mission Health.
The price, approximately $1.5 billion, includes substantially all of Mission Health’s assets. The proceeds of the sale combined with Mission Health’s remaining cash and investments–after all debts and obligations have been paid–will ultimately be transferred to the newly formed Dogwood Health Trust.
Under the agreement, HCA will acquire Mission Hospital (763 beds) and CarePartners Rehabilitation Hospital (80 beds), both in Asheville; Mission Hospital McDowell (49 beds) in Marion; Angel Medical Center (25 beds) in Franklin; Transylvania Regional Hospital (25 beds) in Brevard; Blue Ridge Regional Hospital (25 beds) in Spruce Pine; and Highlands-Cashiers Hospital (24 beds) in Highlands.
That’s an average price per bed of $1,513,623, a record in 2018, at least. Last year, the highest average price-per-bed for a U.S. hospital acquisition (in a non-REIT deal) was $691,794. HCA was the acquirer in that deal, paying $725 million for three of Tenet Healthcare‘s (NYSE: THC) hospitals in Houston.
Of the 46 deals for U.S. hospitals announced so far this year, just nine have disclosed a price. The most expensive deal thus far is RCCH HealthCare Partners‘ $5.6 billion takeover of LifePoint Health (NASDAQ: LPNT), announced on August 13. LifePoint’s acute-care facilities house 9,254 beds, making the average price-per-bed just $605,144.
HCA’s other 2018 acquisition, the not-for-profit Memorial Health (612 beds) in Savannah, Georgia was announced in February 2018. The $456.7 million reported price makes an average price per bed of $746,242.
With four months left to go in 2018, the game isn’t over yet. Stay tuned.
