HCA Healthcare, Inc. (NYSE:HCA) and Steward Health Care announced the signing of a definitive agreement for HCA Healthcare to acquire the operations of Steward Health Care's five Utah hospitals. HCA Healthcare also entered into an agreement to lease the related real estate from its owner following the expected closing.
"Utah is one of the fastest-growing areas in the country, and the state's need for healthcare continues to increase," said Sam Hazen, chief executive officer of HCA Healthcare. "We believe the addition of these facilities will help us improve healthcare network options for patients and enable investment in services to meet increasing demand for healthcare. We look forward to welcoming them to the HCA Healthcare family."
Steward Health Care also operates hospitals in Arizona, Texas, Arkansas, Louisiana, Florida, Ohio, Pennsylvania, and Massachusetts. The sale of these facilities to HCA Healthcare will enhance Steward Health Care's ability to continue growing and reinvesting in other states and locations served by the health system.
Steward Health Care chairman and CEO Ralph de la Torre commented, "We are very proud of Steward's significant contributions to the quality and efficiency of operations in these facilities. We are confident that the combination with HCA Healthcare will enable the achievement of cost savings and further improved quality of care for patients in Utah. For Steward, this transaction frees up additional capital to more deliberately invest in its accountable care model (largest in the US and #2 in shared savings for MSSP 2020) by reinvesting in risk-based opportunities and health care expansion."
Debevoise & Plimpton LLP acted as transaction counsel to HCA Healthcare. SVB Leerink acted as exclusive financial advisor to Steward Health Care. The transaction is subject to customary regulatory approvals and other closing conditions. Terms of the agreement were not disclosed.