HCA sells another Georgia hospital, with $637M price tag

By | October 7, 2021

Dive Brief:

  • AdventHealth purchased a 230-bed Georgia hospital from HCA Healthcare for $ 637 million, the nonprofit system said Tuesday. It’s HCA’s fifth hospital sale in Georgia in as many months.
  • AdventHealth acquired Redmond Regional Medical Center from HCA in Rome, Georgia, which sits a little over an hour northwest of Atlanta.
  • For AdventHealth, the deal will come with related business entities including physician clinic operations, outpatient services and more than 1,500 employees.

Dive Insight:

The latest deal means HCA will no longer have a footprint in northwest Georgia. “The sale completes the company’s divestiture of hospitals in the surrounding areas of Atlanta,” the system said in an earlier statement announcing the deal.

In May, HCA said it was selling four Georgia hospitals to Piedmont Healthcare for $ 950 million.

Even though HCA is exiting northwest Georgia, it plans to maintain its existing footprint in southeast Georgia, where it runs four hospitals, including in Augusta and Savannah. HCA seems to be doubling down on the area. Earlier this year, the system said it picked up another hospital in southeast Georgia from Meadows Regional Hospital in Vidalia.

The latest move is in line with HCA’s strategic vision.

The Nashville-based health system typically seeks to build out services around its existing networks. It looks to add depth to its networks by offering an array of services to patients in the area.

The latest example of HCA building out network offerings is its acquisition of Brookdale Senior Living, a home health and hospice provider. The Brookdale unit allows HCA to sell those services in its existing markets. Now it can provide patients with a greater continuum of care, from inpatient care on one end to hospice on the other, with more in between such as urgent care and ambulatory surgery centers.

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HCA leaders said it was clear that Redmond Regional Medical Center, which was sold to AdventHealth, did not fit into that strategy.

Redmond “was not able to fully benefit from a broader HCA Healthcare network in the area,” the statement said.

In AdventHealth, Redmond will be joining an existing network in northwest Georgia where the system already operates two hospitals.

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