NASHVILLE, Tenn., April 1 /PRNewswire-FirstCall/ -- HCA (NYSE: HCA) today
announced the completion of its acquisition of the Health Midwest system in
The company announced on November 22, 2002 the signing of a definitive
agreement to acquire the system after having been engaged in exclusive
negotiations since October of 2002.
The system now comprises the newly formed Midwest Division of HCA and
includes the following facilities:
Allen County Hospital Iola, Kansas
Baptist-Lutheran Medical Center Kansas City, Missouri
Cass Medical Center* Harrisonville, Missouri
Independence Regional Health Center Independence, Missouri
Lafayette Regional Health Center Lexington, Missouri
Lee's Summit Hospital Lee's Summit, Missouri
Medical Center of Independence Independence, Missouri
Menorah Medical Center Overland Park, Kansas
Overland Park Regional Medical Center Overland Park, Kansas
Research Belton Hospital Belton, Missouri
Research Medical Center Kansas City, Missouri
Research Psychiatric Center Kansas City, Missouri
*Operated through a management agreement.
"We're pleased to complete this transaction," said Jack O. Bovender, Jr.,
Chairman and Chief Executive Officer of HCA. "This has been a comprehensive,
thorough process with a lot of community participation. We are ready to get
to work to improve these hospitals through significant capital infusion and by
making long-term operational improvements."
As part of the transaction agreement, HCA will commit at least $450
million in capital expenditures in the community over the next five years. In
addition, proceeds of the transaction are expected to create two charitable
foundations, one in Missouri and one in Kansas.
"We're very excited to get things started in Kansas City," said Bryan R.
Rogers, President of the Midwest Division. "We have a lot of work to do over
the next weeks and months, but the meetings we've had with physicians and
employees are very encouraging. People are energized and we have good
foundations on which to build."
As previously announced, the entire Health Midwest system was valued at
$1.125 billion, including approximately $183 million of debt and leases
assumed by HCA. The leases are for Overland Park Regional Medical Center and
Independence Regional Health Center, both owned by Triad Hospitals, Inc.
Entities originally included in the valuation of the transaction but not
acquired are valued at about $87 million. As a result the aggregate cash paid
by HCA at closing was approximately $855 million.
This press release contains forward-looking statements based on current
management expectations. Those forward-looking statements include statements
other than those made solely with respect to historical fact. Numerous risks,
uncertainties and other factors may cause actual results to differ materially
from those expressed in any forward-looking statements. These factors
include, but are not limited to (i) the ability to successfully integrate
Health Midwest into the Company's operations and the financial impact thereof,
(ii) the ability to fund expected capital improvements, and (iii) other risk
factors detailed from time to time in the Company's filings with the SEC.
Many of the factors that will determine the Company's future results are
beyond the ability of the Company to control or predict. Readers should not
place undue reliance on forward-looking statements, which reflect management's
views only as of the date hereof. The Company undertakes no obligation to
revise or update any forward-looking statements, or to make any other forward-
looking statements, whether as a result of new information, future events or
All references to "Company" and "HCA" as used throughout this document
refer to HCA Inc. and its affiliates.