HCA (NYSE: HCA) today announced the signing of a definitive agreement to
sell five rural hospitals in Virginia and West Virginia to LifePoint
Hospitals, Inc. for approximately $285 million, plus working capital and
other adjustments estimated to be $45 million as of March 31, 2005.
The five facilities are part of a planned divestiture of 10 hospitals
previously announced by HCA in March of 2005. The five facilities
involved in the LifePoint agreement are:
Clinch Valley Medical Center, Richlands, Va. 200 beds
St. Joseph's Hospital, Parkersburg, W. Va. 325 beds
Saint Francis Hospital, Charleston, W. Va. 155 beds
Raleigh General Hospital, Beckley, W. Va. 369 beds
Putnam General Hospital, Hurricane, W. Va. 68 beds
Like all of the hospitals in the divestiture plan, these facilities are
located primarily in rural and non urban markets, in contrast to the
majority of the company's remaining hospitals which are primarily
located in larger urban and suburban areas. LifePoint currently owns a
hospital in Martinsville, Va., one in Wytheville, Va., one in Danville,
Va. and two in Logan, W.Va.
"I am extremely pleased that these five facilities will be part of
LifePoint. We believe LifePoint can focus the necessary resources on
these hospitals and enable them to compete more successfully for capital
thereby allowing them the best opportunity for success in the future,"
stated Jack O. Bovender, Jr. HCA's Chairman and CEO. "The divestitures
will allow HCA to redeploy capital to support our hospitals in growing
urban markets," concluded Bovender.
The company is still pursuing discussions with various parties for the
divestiture of the remaining five hospitals and anticipates completion
of the divestitures by the end of 2005. The remaining five hospitals are:
Grandview Medical Center, Jasper, Tenn. 70 beds
River Park Hospital, McMinnville, Tenn. 127 beds
North Monroe Medical Center, Monroe, La. 255 beds
Southwestern Medical Center, Lawton, Okla. 212 beds
Capital Medical Center, Olympia, Wash. 119 beds
HCA believes the divestitures will not have a material effect on its
future financial position or results of operations. The transaction is
expected to be completed in the fourth quarter of 2005 and is subject to
customary regulatory approvals.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements based on current
management expectations. Those forward-looking statements include all
statements other than those made solely with respect to historical fact,
including those relating to the results of the divestiture of the
hospitals pursuant to the LifePoint agreement, the anticipated use of
proceeds from the divestiture, the divestiture of the five remaining
hospitals, and the anticipated impact of the divestitures on the
Company's financial statements and results of operations. Numerous
risks, uncertainties and other factors may cause actual results to
differ materially from those expressed in any forward- looking
statements. These factors include, but are not limited to (i) the
successful completion of the transactions contemplated by the LifePoint
agreement; (ii) the ability of the Company to divest the five remaining
hospitals in a timely manner on terms acceptable to the Company, (iii)
the ability of the Company to obtain all necessary regulatory approvals
with respect to the divestitures, (iv) the ability of the Company to
smoothly transition the divested hospitals; and (v) other risk factors
detailed in the Company's filings with the SEC. Many of the factors that
will determine the Company's future results are beyond the ability of
the Company to control or predict. Readers should not place undue
reliance on forward-looking statements, which reflect management's views
only as of the date hereof. The Company undertakes no obligation to
revise or update any forward-looking statements, or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise.
All references to "Company" and "HCA" as used throughout this document
refer to HCA Inc. and its affiliates.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding HCA's business
which are not historical facts are "forward-looking statements" that
involve risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see "Risk Factors" in the
Company's Annual Report or Form 10-K for the most recently ended fiscal
year.
Investors, Mark Kimbrough, +1-615-344-2688,
or Media, Jeff Prescott, +1-615-344-5708,
both of HCA