HCA Healthcare to Acquire Five Utah Hospitals from Steward Health Care
HCA Healthcare is set to take over the operations of five Utah hospitals owned by Steward Health Care System for an undisclosed amount. In addition, real estate investment firm Medical Properties Trust, which owns a $ 1.2 billion stake in the five properties together, plans to lease them to HCA Healthcare.
The facilities in question include Davis Hospital in Layton, Jordan Valley Medical Center in western Jordan, Jordan Valley Medical Center-West Valley Campus, Mountain Point Medical Center in Lehi, and Salt Lake Regional Medical Center in Salt Lake City, according to KSL News.
Under the agreement with Steward, the facilities will be part of the mountain division of HCA Healthcare, which already includes 11 hospitals in Utah, Idaho and Alaska. The sale is expected to allow Steward to focus more on other states and locations it serves, including Arizona, Texas, Arkansas, Louisiana, Florida, Ohio, Pennsylvania and Massachusetts.
Steward says he will also be able to reinvest in more risk-based opportunities, as well as invest more in his responsible care model, which is the largest in the United States and second in terms of shared savings for MSSP 2020. “We are confident that the combination with HCA Healthcare will result in cost savings and further improve the quality of care for patients in Utah,” said Ralph de la Torre, CEO of Steward Health Care, in a statement.
Steward is based in Dallas and currently operates 39 hospitals in the United States. HCA Healthcare is located in Nashville and is one of the largest providers in the United States, with 187 hospitals and approximately 2,000 outpatient sites. These include surgery centers, stand-alone emergency rooms, emergency care centers and medical clinics across 20 states and the UK.
He says Utah is a fast growing region and the state’s health care needs continue to grow. “We believe that the addition of these facilities will help us improve health care network options for patients and allow investment in services to meet the growing demand for health care,” said Sam Hazen, CEO of HCA Healthcare, in a statement.
MPT acquired the hospitals in 2017 for $ 1.2 billion and has accumulated more than $ 300 million in real estate rents and interest. As they represent approximately 5% of MPT’s total pro forma gross assets, the purchase by HCA Healthcare will make the medical provider one of the top five tenants in MPT’s portfolio.