HCA Healthcare has signed off on a deal to sell four of its Georgia hospitals for roughly $950 million, the Nashville, Tennessee-based health system announced this morning.
Piedmont Healthcare, an Atlanta-based not-for-profit system, is on the receiving end of the deal. It is expected to close by July 31 pending regulatory approval.
“This is an exciting opportunity for Piedmont,” Kevin Brown, president and CEO of Piedmont, said in a statement. “HCA Healthcare has instilled a high standard of care into these facilities, and we are proud that they have trusted Piedmont to continue this legacy.”
The facilities at the heart of the deal are located in north Georgia and Macon: the 310-bed Eastside Medical Center, 119-bed Cartersville Medical Center, 310-bed Coliseum Medical Center and 103-bed Coliseum Northside.
Also part of the deal is Coliseum Center for Behavioral Health, a 40-bed inpatient behavioral health facility in Macon, as well as an ambulatory surgery center in Macon. Further, Piedmont said it will become a partner in a joint venture for 12 urgent and family care clinics.
HCA said that these locations “were not able to fully benefit from a broader HCA Healthcare presence” within their markets. The large health system still operates five other hospitals in Georgia and noted a recent expansion of its network in the southeast part of the state through the purchase of Meadows Regional Medical Center.
“Given Piedmont Healthcare’s history of serving the region’s health care needs, the affiliation will better position the hospitals to continue providing excellent care to their patients,” HCA said in its announcement. “At the same time, the transaction provides strategic value to HCA Healthcare by increasing financial flexibility for investments in ongoing and future initiatives in core markets.”
HCA operates 186 hospitals and roughly 2,000 ambulatory care sites across 20 states and the U.K.
The system reported year-over-year revenue and profit increases to $13.9 billion and $1.4 billion, respectively, in its recent earnings call. It also raised its earnings guidance for the full year by $500 million in spite of patient volumes lagging behind pre-pandemic levels.
Piedmont Healthcare consists of 11 hospitals, 35 urgent care centers and 25 retail pharmacy care locations, all within the state of Georgia. Its integrated network counts more than 2,600 employed and independent physicians.