Acquisitions
HMA has a strategic focus of maintaining its flexibility to adapt to the changing health care landscape. Acquisitions remain an important component of HMA’s growth strategy, with four hospitals acquired in 2006, all aimed at preserving and reinforcing existing HMA hospitals and communities.
They were —
- The 56-bed Barrow Regional Medical Center in Winder, Georgia
- An 80% controlling interest in the 84-bed St. Cloud Regional Medical Center in St. Cloud, Florida
- The 83-bed Physicians Regional Medical Center – Pine Ridge in Naples, Florida, and
- The 189-bed Gulf Coast Medical Center in Biloxi, Mississippi.
Importantly, HMA’s purchase of an 80% controlling interest in the St. Cloud Regional Medical Center marks our first joint venture with a not-for-profit hospital. The transaction progressed very smoothly, and we are very pleased to be partnered with the nationally recognized Orlando Regional Healthcare System. This purchase structure highlights HMA’s flexibility in working with potential acquisition candidates to provide both the buyer and seller with the best acquisition structure.
Refocusing on core hospitals
As the year progressed, considerable time was spent on improving our core operations and strategically evaluating our existing hospital base to determine which facilities continued to meet our criteria and which facilities no longer fit. As such, we sold our two remaining psychiatric hospitals, which allowed management to focus its resources and energy on our core business of operating general acute care hospitals.
As of September 30, 2007, we operate 59 hospitals in 15 states with almost 8,400 licensed beds. We believe acquisitions will continue to be a part of the HMA growth strategy, however, likely at a slower pace and with the same strategic emphasis as in 2006.