Healthy switch?

March 20, 2007 09:50 am

— In yet another business upset, the deal to buy Triad Hospitals, which owns Navarro Regional Hospital, has been trumped by another deal with Community Health Systems, out of Franklin, Tenn. The purchase price will be about $5.1 billion, plus $1.7 billion in assumed debt.
Last month, Triad Hospitals, headquartered in Plano, was negotiating with Wall Street giants Goldman Sachs and JPMorgan Chase, but this latest deal is worth several hundred million more. Under the deal, Triad will have to pay a “breakup fee” of between $40 million and $120 million.
The agreement still has to be approved by stockholders. However, the price of Triad and CHS stock rose on the announcement Monday.
Fred Woody, chief executive officer for Navarro Regional Hospital, said he didn’t anticipate it making much difference at a local level.
“I don’t expect that our patients or families will see much change in terms of the day-to-day operations,” he said. “They’re going to see the same nurses and doctors taking care of them.”
Community Health Systems has a lot in common with Triad, in that both operate hospitals and clinics in rural areas and smaller cities. Triad is the larger of the two companies, in terms of income and facilities, but the merger of the two would create the country’s largest publicly-traded hospital company.
Wayne T. Smith, chairman, president and chief executive of Community Health, said the acquisition would increase his company’s size and geographic diversity.
“This acquisition complements our rural strategy by adding mid-size markets in great locations,” Smith said.
The hospital’s duties and responsibilities towards Corsicana and Navarro County remain the same, Woody added.
“Obviously, we have what is a real strong commitment to this community. Our mission remains, and that’s to deliver the best possible care,” he said.
If any changes do occur with the change in ownership, it will be awhile before they’re felt in Corsicana, Woody said.
“It’ll be several months before we know if, or when, our operations will be affected,” he said. “We expect to move forward with our vision for the community.”
———
The Associated Press contributed to this report.