West Virginia HCA Hospitals "For Sale"

An article in today's Charleston Gazette reports that HCA has put its West Virginia hospital up for sale, including St. Francis Hospital in Charleston, Putnam General Hospital in Teays Valley, St. Joseph's Hospital of Parkersburg and Raleigh General Hospital in Beckley.

The article states that that no buyer or buyers have currently been identified but that the HCA wants the sale to be completed by the 4th quarter of 2005. The article states that HCA is selling the West Virginia hospitals along with a group of 6 other hospitals, including two hospitals in Tennessee and one each in Virginia, Louisiana, Oklahoma and Washington. According to HCA it is selling these particular hospitals in rural markets so that it can continue its trend to focus on large urban and suburban markets.

HCA's press release on the sale of the 10 hospitals states as follows:

HCA also announced its intention to divest 10 acute care hospitals located in six states. The 10 hospitals are located primarily in rural and small urban markets, in contrast to the majority of the Company's remaining hospitals which are located in large urban or suburban markets.

"The divestitures will allow the Company to redeploy capital to support our hospitals in growing urban markets," stated Jack O. Bovender, Jr., HCA's Chairman and CEO. "These facilities are viable community assets. We believe that increased focus and attention and the ability to continue to successfully compete for capital should provide these facilities the best opportunity for success in the future. Many of the facilities to be divested have been a part of HCA for several years and, although it was a difficult decision, we believe the divestitures are in the best long-term interests of the Company, the affected hospitals and their local communities."

As a group, the 10 hospitals to be divested had 2004 net revenues of $654 million. Hospital divestiture list:

1. Clinch Valley Medical Center, Richlands, VA 200 beds
2. Grandview Medical Center, Jasper, TN 70 beds
3. River Park Hospital, McMinnville, TN 127 beds
4. St. Joseph's Hospital, Parkersburg, WV 325 beds
5. Saint Francis Hospital, Charleston, WV 155 beds
6. Raleigh General Hospital, Beckley, WV 369 beds
7. Putnam General Hospital, Hurricane, WV 68 beds
8. North Monroe Medical Center, Monroe, LA 255 beds
9. Southwestern Medical Center, Lawton, OK 212 beds
10. Capital Medical Center, Olympia, WA 119 beds