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HCA Healthcare (HCA) Buys MD Now, Boosts Florida Presence

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HCA Healthcare, Inc. (HCA - Free Report) recently announced that it has acquired MD Now Urgent Care from a LA-based private equity investment firm, Brentwood Associates. The transaction was closed at 2021-end. The financial details of the deal are yet to be disclosed.

The acquisition of MD Now has added 59 Florida urgent care centers to HCA Healthcare’s portfolio. The acquirer currently operates more than 170 clinics in 19 markets. The move boosts HCA’s ability to provide patients with multiple outpatient care options in Florida. Also, the patients of MD Now will be able to access HCA Healthcare’s massive network of acute care and specialty services.

The acquisition will help HCA address the growing demand for healthcare services in Florida. It currently serves 6.4 million patients per annum in the state. The acquisition will further boost the number of patients served through HCA’s network. In 2021, MD Now treated more than 900,000 patients.

HCA Healthcare has been emphasizing on acquisitions for expedited growth. Its inorganic growth strategies have led to an increase in patient volumes, enabled network expansion across several markets and added hospitals to its portfolio. The company’s acquisitions are expected to add scale to its business.

HCA Healthcare announced last November that it has plans to build three more hospitals in the state of Florida. In the past three years, the company spent around $3 billion through a capital investment initiative in the state.

Other companies that are focusing on inorganic growth to capitalize on the growing demand for healthcare services include Universal Health Services, Inc. (UHS - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Acadia Healthcare Company, Inc. (ACHC - Free Report) .

Acquisitions play a key role in building Universal Health’s growth trajectory. In the last three years, UHS spent more than $170 million on the acquisition of businesses and properties. In 2021, the company acquired 88 beds through the acquisition of the Las Vegas specialty hospital and a LEED Medical Center micro hospital. Universal Health will likely continue making acquisitions supported by balance sheet strength that will help it expand its domestic and international presence.

Tenet Healthcare boasts a strong inorganic growth story. The company has made numerous acquisitions, partnerships, and strategic alliances, aimed primarily at boosting the scale of business, operating capacity and geographical presence. THC closed the buyout of a portfolio of 45 ambulatory surgical centers from SurgCenter Development for a value of $1.1 billion. Tenet Healthcare also entered into an agreement with Compass Surgical Partners to acquire the latter’s interest and management responsibilities in nine ambulatory surgery centers.

Buyouts have added facilities, beds, and hospitals to Acadia Healthcare’s network and contributed to its top line. ACHC remains actively engaged with its acquisition pipeline and expects buyout and joint venture activity to be heavily skewed toward acute facilities in the United States. In the third quarter of 2021, Acadia Healthcare added 104 beds to its existing operations. The company is also making opportunistic acquisitions to expand in the behavioral healthcare industry.

Price Performance and Zacks Rank

HCA Healthcare’s shares have surged 52.6% in a year’s time, outperforming the industry’s rally of 33.9%.

Zacks Investment ResearchImage Source: Zacks Investment Research

The company currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.