HCA Healthcare, Inc. ( HCA Quick Quote HCA - Free Report) has agreed to divest its Redmond Regional Medical Center, GA to AdventHealth for around $635 million. The to-be-divested hospital has 230 beds. This transaction would mark the company’s winding up of hospital operations in the surrounding regions of Atlanta. Subject to closing conditions, the divestiture is expected to be completed in the third quarter of 2021. Redmond Regional Medical Center has been catering to the community for 48 years and is accredited with high-quality healthcare. HCA Healthcare has been serving people in Georgia for a long time now and currently operated four other hospitals in the state. In fact, it recently enhanced its network of medical care in Southeast Georgia by acquiring Meadows Regional Hospital in Vidalia from Meadows Health Alliance. With this sale, the company will not have any presence in Northwest Georgia. Notably, Redmond Regional Medical Center was not gaining traction from a broader HCA Healthcare network in the area. This deal offers better financial flexibility that will be required for investments in the company’s present and future initiatives in its core markets. Earlier this month, the company inked deals to sell four of its hospitals in Georgia for approximately $950 million to Piedmont Healthcare, a not-for-profit health system. The list includes Eastside Medical Center, Cartersville Medical Center, Coliseum Health System and Coliseum Center for Behavioral Health. The companies are spread across North Georgia and Macon. These hospitals too could not benefit from the wider network of the parent company. Nashville-based HCA Healthcare currently comprises 186 hospitals and approximately 2,000 ambulatory sites of care including surgery centers, freestanding ERs, urgent care centers and physician clinics. Apart from these initiatives, the company’s strategic acquisitions contribute to growth. It reached an agreement to buy the home health and hospitals business of Brookdale Senior Living, which will likely close in the third quarter. This buyout is expected to expand services across the company’s networks and offer better enterprise capabilities. Significantly, the company successfully grew both its traditional emergency department and newer urgent care center service. All these initiatives bode well for long term growth. Zacks Rank and Price Performance
Shares of this presently Zacks Rank #3 (Hold) company have gained 100.3% in the past year, outperforming its
industry’s growth of 98%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Better-ranked companies the same space include
Amedisys, Inc. ( AMED Quick Quote AMED - Free Report) , Select Medical Holdings Corporation ( SEM Quick Quote SEM - Free Report) and Tenet Healthcare Corporation ( THC Quick Quote THC - Free Report) , all holding a Zacks Rank #2 (Buy), currently. Amedisys provides home health and hospice services throughout the United States. The company delivered a trailing four-quarter surprise of 39.1%, on average. Select Medical is a healthcare company in the United States. It managed to deliver a four-quarter surprise of 245.9%, on average. Tenet Healthcare is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities. The company managed to deliver a four-quarter surprise of 106.4%, on average. Zacks Names “Single Best Pick to Double”
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