Nashville hospital giant HCA plans to buy out its partner in Colorado health system joint venture HCA-HealthOne for $1.45 billion.
HCA said Wednesday it has a memorandum of understanding with nonprofit The Colorado Health Foundation to buy the foundation’s approximately 40 percent ownership stake in the joint venture, which currently includes seven hospitals and 13 ambulatory surgery centers in the metro Denver area.
HCA (Ticker: HCA) plans to fund the purchase at closing through money available under its revolving credit facility. The deal, which is subject to regulatory approval and the negotiation of a definitive agreement, is expected to close in the third quarter.
“We are very pleased with the opportunity to acquire full ownership of these outstanding facilities,” said HCA Chairman and CEO Richard M. Bracken. “This transaction would not only expand our economic involvement in the metropolitan Denver market, but would also provide additional resources for the Foundation to further its mission and outreach activities.”
The HCA-HealthOne joint venture began in 1995. Since that time, HCA has invested more than $2 billion in capital improvements and enhanced services in the Denver community, according to HCA Division president Jeffrey A. Dorsey, who is also President and CEO of HealthOne.
HealthOne is the largest health care system in the metro Denver area, with 8,700 employees and 3,000 affiliated physicians.
HCA, which returned to the public markets earlier this year, operates more than 160 hospitals and more than 100 freestanding surgery centers.