The Hospital market is off to a strong start in 2021, with seven deals on the books in January. The health system giant, HCA Healthcare (NYSE: HCA), just announced the largest deal in the sector by price. HCA purchased Meadows Regional Medical Center, a 52-bed community hospital in Vidalia, Georgia from Meadow Health Alliance, Inc. for $73 million. A letter of intent was filed in September 2019, and the Toombs County Hospital Authority and Meadow Health Alliance have approved the sale.
Meadow Health Alliance generated $153.6 million in revenue in 2019 and estimated $9.63 million EBITDA. Meadows Regional will be HCA’s 10th hospital in Georgia. This deal is expected to close on or before April 30, 2021.
This is the first acquisition we’ve seen from HCA Healthcare in nearly a year, according to search results in our Healthcare Deal Database. In June 2020, the health system divested Garden Park Medical Center, a 130-bed acute care hospital, to exit the state of Mississippi. Garden Park had $67.9 million in revenue in 2018. Singing River Health System, a not-for-profit health system based in Pascagoula, Mississippi, purchased the hospital for an undisclosed sum.
Back in February 2020, HCA Healthcare added two critical access hospitals in North Florida, Shands Starke Regional Medical Center (25 beds) and Shands Live Oak Regional Medical Center (25 beds). The seller was Community Health Systems (NYSE: CYH), which closed the inpatient and non-emergency services of the hospitals in late April. The facilities were sold to HCA’s North Florida division, and they were converted into off-campus emergency departments of Lake City Medical Center and North Florida Regional Medical Center in Gainesville.