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HCA Healthcare Buys Urgent Care Centers to Boost Portfolio

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HCA Healthcare (HCA - Free Report) recently acquired 24 MedSpring urgent care centers from Fresenius Medical Care. These centers, situated in Austin, Dallas and Houston, will now be rebranded as CareNow Urgent Care, operated by HCA Healthcare and represents one of the major urgent care networks in the country. However, terms of the deal were not disclosed.

Since Austin, Dallas and Houston are witnessing substantial growth, people living there will now be able to access feasible healthcare services close to their residences and workplaces.

The buyout of these urgent care centers is in perfect sync with HCA Healthcare’s solid healthcare network and is expected to provide better services to patients.

With the inclusion of these facilities, HCA Healthcare’s portfolio now boasts 160 urgent care centers across the country. The company 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 as a result, integrated hospitals into its portfolio.

The company’s buyouts are expected to  scale up its business, thereby leveraging its position to weather the regulatory uncertainties in the healthcare sector. During 2018, HCA Healthcare spent a total of $1.2 billion on its acquisition profile.

In the first quarter of 2019, the company completed a major takeover of Mission Health, a seven-hospital system in Asheville and Western North Carolina, for approximately $1.5 billion. All these transactions helped the company cement its portfolio and penetrate further into different geographies.

One of its peers, Acadia Healthcare (ACHC - Free Report) , has also been chasing the consolidation route for accelerating growth.. Evidently, buyouts have added facilities, beds and hospitals to the company’s network, contributing to its top line in turn.

Shares of this Zacks Rank #1 (Strong Buy) company have surged 30.1% in a year’s time, outperforming its industry’s rally of 14%.


Other Key Picks

Investors interested in the medical sector can also take a look at some other top-ranked stocks like WellCare Health Plans, Inc. , and Molina Healthcare, Inc (MOH - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.

WellCare Health offers managed care services to government-sponsored health care programs. The company pulled off average positive surprise of 13.52% in the preceding four quarters. It holds a Zacks Rank #2 (Buy).

Molina Healthcare provides managed health care services to low-income families and individuals. It carries a Zacks Rank of 1 and managed to deliver average positive surprise of 88.17%.

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