Columbia / HCA to Merge With Texas-Based Medical Firm

Continuing its frantic merger activity, Columbia/HCA Healthcare Corp. agreed Monday to acquire Dallas-based Medical Care America, an operator of outpatient surgery centers, in a stock transaction valued at more than $860 million.

Columbia/HCA said the merger, pending federal and shareholder approval, would expand its operations in key markets, especially in California, Florida and Texas, by adding 96 outpatient centers that offer oncology, orthopedics, cardiology and other services.

Louisville, Ky.-based Columbia, the nation’s largest for-profit hospital chain, and Medical Care America said they expect to see efficiencies result from combined purchasing contracts, overhead reduction and access to capital.

“Columbia’s strategy is to build local delivery networks,” said Chief Executive Richard Scott. “We want to have hospital, surgery centers, diagnostic centers and home health care facilities in the same city so that buyers of health care only need to talk to us.”

The companies said nearly 60% of Medical Care America’s centers are in metropolitan areas where Columbia operates hospitals. Medical Care has eight centers in California.

Under the deal, which involves an exchange of Columbia stock for Medical Care stock, Columbia would pay between $860 million and $892 million, based on the average value of Columbia stock for a certain period before the deal closes. Columbia would also assume $232 million of Medical Care America’s debt, giving the deal a total value of roughly $1.1 billion.

Columbia/HCA was created in February when Columbia Hospital Corp. and HCA-Hospital Corp. of America merged in a $5.7-billion deal. Columbia also acquired Galen Health Care Inc. for $3.5 billion in stock last September.