HCA has agreed to acquire Memorial Health’s financially struggling hospital in Savannah in a $710 million deal.
The agreement, announced Wednesday night, would provide much-needed cash infusion for Memorial University Medical Center, a large safety-net hospital that has been looking for a partner.
The deal would also vault HCA, a national for-profit hospital chain, into a stronger position in Georgia. The Nashville-based company already operates seven hospitals in the Peach State. But none is a big safety-net hospital such as Memorial.
The Memorial Health board unanimously agreed to a proposal from HCA to sign a letter of intent to purchase the assets of the hospital and the Chatham County Hospital Authority.
If the acquisition is finalized, HCA would take a stronger position in the eastern half of the state, with hospitals in Macon, Augusta, Dublin and Savannah. In addition, the company is nearing the purchase of Mayo Clinic Health System in Waycross.
HCA has facilities in the Jacksonville, Florida, area as well.
Included in the $710 million purchase price is $430 million to pay off bonds and other debts for Memorial Health, as well as $280 million over the next 10 years to fund capital improvements, the Savannah Morning News reported. All other proceeds of the sale will go to the Chatham County Hospital Authority for creation of an indigent care trust fund.
The centerpiece of Memorial is Memorial University Medical Center, a 604-bed hospital.
Memorial would switch from a nonprofit organization to a for-profit entity under HCA.
“This will essentially be a sale of the hospital,” said J. Curtis Lewis…
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