Columbia / HCA to Sell 22 Hospitals

Columbia/HCA Healthcare Co., the world’s largest hospital company, said it is selling 22 hospitals in four states to a nonprofit consortium for $1.2 billion. The hospitals are part of Columbia’s 45-hospital Atlantic Group. The company previously said it planned to sell some of those hospitals and either spin off or reposition the others within the company. The hospitals are in Tennessee, North Carolina, Kentucky and Alabama. While the sale was negotiated jointly, Columbia has entered into separate purchase agreements with the consortium’s eight members. Columbia, which still would own 314 hospitals after the sale, is the target of a Justice Department investigation into whether the company overcharged Medicare, Medicaid and other government health-care programs. Three middle managers were indicted in Florida and face trial in October. They have pleaded not guilty. The investigation, which started more than a year ago, prompted Columbia’s stock to plummet and caused a management shake-up. Columbia said it hopes to complete the sale of the 22 hospitals in the third quarter. The sale is subject to regulatory approval. Columbia’s stock fell 6 cents to close at $33.25 on the New York Stock Exchange.