Triad Lays Out $174M for Six Hospitals

In Palmer, AL, Triad paid $25 million to acquire a 76% interest in Valley Hospital under an agreement to operate the existing 36-bed facility and build a replacement. The $6.6-million balance, including working capital, was spent on the acquisition and facility lease of the 68-bed Woodward Regional Hospital in Woodward, OK.

The deal with Tenet was announced in September, at which time the four hospitals were projected to realize $250 million in annual revenues for the year. The acquired properties are the 193-bed Central Arkansas Hospital in Searcy. 166-bed National Park Medical Center in Hot Springs, 104-bed Regional Medical Center of Northeast Arkansas in Jonesboro and 170-bed Saint Mary's Medical Center in Russellville. Triad owns five other hospitals, totaling 625 beds, in the state.

The Oklahoma acquisition, announced in April, pitted Triad against Integris for the takeover of the not-for-profit facility. Triad outbid its competitor by $1.1 million, according to the city-owned facility's records. Under the deal, Triad will pay $500,000 annually for a 20-year lease as well as $2 million for equipment and about $4.2 million in accounts receivable and inventory from the Woodward Regional Hospital Foundation.

According to published reports about the Alaska deal, Triad provided a $16-million bail-out plan for the 36-bed hospital in Palmer. Triad plans to build a $75-million replacement hospital in a nearby town and more than double the bed count for the rural communities.

Next month, Triad plans to sell two hospitals and three ambulatory surgery centers in the Kansas City area to HCA, the facilities' operator, for about $135 million to $140 million in gross proceeds. According to Triad, the transaction will result in about $18 million in revenue and adjusted EBITDA this year. At last count, Triad owned 57 hospitals and 14 surgery centers with 9,780 beds in 18 states.