HCA Healthcare has signed a definitive agreement to acquire the operations of five hospitals in Utah from Steward Health Care.
The financial terms of the deal were not divulged.
The acquisition will strengthen HCA Healthcare’s Mountain Division, which includes 11 hospitals in Utah, Idaho and Alaska.
HCA Healthcare CEO Sam Hazen said: “Utah is one of the fastest-growing areas in the country, and the state’s need for healthcare continues to increase.
“We believe the addition of these facilities will help us improve healthcare network options for patients and enable investment in services to meet increasing demand for healthcare. We look forward to welcoming them to the HCA Healthcare family.”
The closing of the acquisition is subject regulatory approvals and other closing conditions.
Concurrently, HCA Healthcare entered into another agreement to lease the related real estate from its owner.
Once the transaction with Steward Health Care completes, HCA Healthcare will sign a new 15-year master lease for the five hospitals with Medical Properties Trust (MPT).
There will be no change to the cash rent payable to MPT under the existing Steward master lease.
HCA Healthcare will have certain options to start purchasing the facilities starting in 2028.
MPT chairman, president and CEO Edward K. Aldag, Jr., said: “HCA is a well-known industry leader with a proven track record of improving patient care by leveraging its learning health system model capabilities.
“Through this new master lease agreement, we are pleased to continue to play an important role in supporting best-in-class care to communities in Utah, while continuing to expand and diversify our portfolio of operator relationships.”
Established in 1968, HCA Healthcare operates health care facilities. The company’s network includes 187 hospitals and around 2,000 ambulatory sites of care, including surgery centres, freestanding ERs, urgent care centres and physician clinics.
In May, HCA Healthcare signed a deal to sell the 230-bed Redmond Regional Medical Center to AdventHealth for $635m.