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Modern Healthcare - - REGIONAL NEWS -

IN­VER­NESS, Fla.— The Cit­rus County Hos­pi­tal Board nar­rowed the bid­ding for its strug­gling Cit­rus Me­mo­rial Health Sys­tem to three for-profit suit­ors. The board re­ceived five pro­pos­als from four bid­ders look­ing to take over the hos­pi­tal, which is sad­dled with $80 mil­lion in debt and $30 mil­lion in un­der­funded pen­sion li­a­bil­i­ties. Ini­tially, four bid­ders were vy­ing for the 198-bed hos­pi­tal: HCA, Nashville; Re­gion­alCare Hos­pi­tal Part­ners, Brent­wood, Tenn.; Tampa (Fla.) Gen­eral Hos­pi­tal; and Health Man­age­ment As­so­ciates, Naples, Fla., which sub­mit­ted two pro­pos­als. The board elim­i­nated Tampa Gen­eral from the run­ning. HMA’s takeover bid, val­ued at $293 mil­lion, is the high­est. It in­cludes a pur­chase price of $120 mil­lion and a cap­i­tal in­vest­ment of $50 mil­lion. HMA also pro­posed struc­tur­ing the deal as a joint ven­ture, in a trans­ac­tion that would be val­ued at $238 mil­lion. Both in­vestorowned chains have at least one hos­pi­tal within 22 miles of Cit­rus Me­mo­rial, and the board’s M&A con­sul­tant Josh Nem­zoff noted in his pre­sen­ta­tion that an­titrust con­cerns might be a con­sid­er­a­tion. For Re­gion­alCare, its pro­posed $252 mil­lion deal would mark its first foray into Florida. — Beth Kutscher

KYLE, Texas— Se­ton Health­care Fam­ily broke ground this month on an in­pa­tient re­ha­bil­i­ta­tion hos­pi­tal in Kyle that the Austin­based As­cen­sion Health di­vi­sion will op­er­ate in a joint ven­ture with Post Acute Med­i­cal. The 54,500-square foot, 40-bed fa­cil­ity— known as Warm Springs Re­ha­bil­i­ta­tion Hos­pi­tal—will be lo­cated across from the Se­ton Med­i­cal Cen­ter Hays cam­pus, and will spe­cial­ize in re­ha­bil­i­ta­tion for stroke, brain in­jury, spinal cord in­jury, am­pu­ta­tion, ma­jor trauma, move­ment dis­or­ders and ortho­pe­dic con­di­tions. Post Acute Med­i­cal, a pri­vately held com­pany with head­quar­ters in Camp Hill, Pa., will be the ma­jor­ity owner of the hos­pi­tal. Con­struc­tion of the $16 mil­lion pro­ject is sched­uled to be com­plete next June. “Health­care will change dra­mat­i­cally in the years ahead, with Se­ton work­ing with pa­tients so they re­cu­per­ate in a lower-cost re­ha­bil­i­ta­tion hos­pi­tal or at home in­stead of in more-costly acute hos­pi­tal beds,” Se­ton Ven­tures and Al­liances Pres­i­dent and CEO Tom Gal­lagher said in a news re­lease. “Our part­ner­ship with Post Acute Med­i­cal is a sig­nif­i­cant step in Hays County to­ward re­duc­ing health­care costs.” — Rachel Lan­den

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