IASIS HEALTHCARE: Fledgling Firm to Purchase 15 Hospitals
Despite what company officials call a "tough year marked by deeper-than-expected cuts from [their] largest payer, Medicare," Nashville-based Iasis Healthcare has announced plans to purchase 15 hospitals for about $800 million, the Nashville Tennessean reports. Iasis, "begun quietly last year by a refugee executive from downsizing Columbia/HCA" named Wayne Gower, will stay away from large urban markets. Instead, it plans to focus on hospitals in "growing midsized markets" that regularly compete with other area hospitals, generally a segment of the market not highly sought after by other large chains. According to the deal, Iasis will buy 10 hospitals from Tenet Healthcare Corp. in three states -- Florida, Texas and Arizona -- and five more in St. Lake City from Paracelsus Healthcare Corp. Gower said that Iasis will focus on improving each individual hospital's operations, including updating equipment and services. Due to the company's smaller size, Gower states, "We're not going to brand the hospitals. You're going to see us look for strong community hospitals." Gower indicates that the search for experienced hospital CEOs is underway. The deal is currently waiting for regulatory approval and is scheduled to be completed in October (Bell, 8/18).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.