Mission Health will become a for-profit health system, but continue to manage its seven hospitals in western North Carolina, while HCA runs operations, capital access, predictive modeling and analytics.
HCA Healthcare has completed its previously announced $1.5 billion acquisition of nonprofit Mission Health, a seven-hospital system in Asheville and western North Carolina.
"We're looking forward to investing in western North Carolina and helping ensure Mission Health's 133-year tradition of caring for communities throughout the region continues for many years," HCA CEO Sam Hazen said in a media release.
Based in Asheville, Mission Health is the sixth-largest health system in North Carolina. Mission Health's tax status changes to for-profit with the acquisition.
Nashville-based HCA said it will spend $430 million over five years for the completion of the Mission Hospital for Advanced Medicine, building a replacement hospital for Angel Medical Center and building a new behavioral health hospital.
The proceeds from the sale will be combined with Mission Health's remaining cash and investments and will be used to fund the newly formed Dogwood Health Trust, a population health initiative serving western North Carolina.
Mission Health President and CEO Ronald A. Paulus, MD, called the deal "a tremendous win for the people and communities that we serve."
"We've not only provided for the long-term sustainability of high-quality healthcare and secured special protections for our rural communities, we've also created the largest per capita foundation in the nation to address the social determinants of health," Paulus health.
Under the deal, "nearly all" Mission facilities will become part of HCA while continuing to operate under the Mission brand. Mission will continue to be managed locally while HCA runs operations, capital access, clinical trials, research, predictive modeling, and analytics.
The HCA-acquired hospitals are: 763-bed Mission Hospital in Asheville; 80-bed CarePartners Rehabilitation Hospital in Asheville; 49-bed Mission Hospital McDowell in Marion; 25-bed Angel Medical Center in Franklin; 25-bed Transylvania Regional Hospital in Brevard; 25-bed Blue Ridge Regional Hospital in Spruce Pine; and 24-bed Highlands-Cashiers Hospital in Highlands.
HCA is one of the nation's largest for-profit hospital chains and, with the Mission acquisition, now includes 185 hospitals and 1,800 care venues in 21 states and the United Kingdom.
HCA and Mission Health entered exclusive talks last March and signed a definitive agreement in August. North Carolina regulators approved the deal in January.
The Mission acquisition comes as HCA continues to demonstrate strong financial performance. The company reported this week that same hospital admissions increased by 2% in Q4, accompanied by rising revenues, accruing at nearly $12.3 billion, and adjusted EBITDA topping $2.5 billion, a 6.2% year-over-year increase.
“We've not only provided for the long-term sustainability of high-quality healthcare and secured special protections for our rural communities, we've also created the largest per capita foundation in the nation to address the social determinants of health.”
Mission Health President and CEO Ronald A. Paulus, MD
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
Photo credit: KONSKIE, POLAND - December 1, 2018: Hospital Corporation of America (HCA) logo displayed on smartphone - Image / Editorial credit: Piotr Swat / Shutterstock.com
KEY TAKEAWAYS
HCA will spend $430 million to complete the Mission Hospital for Advanced Medicine, and to build a replacement hospital for Angel Medical Center and a new behavioral health hospital.
The proceeds from the sale will be combined with Mission Health's remaining assets to fund Dogwood Health Trust, a population health initiative serving western North Carolina.