Public Company Information:
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