Columbia to Sell Most of Value Health

Columbia/HCA Healthcare Corp. said it will sell most of Value Health Inc., acquired just three weeks ago for $1.12 billion, in line with its new focus on its hospital business as the government probes its billing practices. Nashville-based Columbia will sell three of Value Health’s four units, accounting for more than 80% of Avon, Conn.-based Value Health’s revenue. It will keep only the unit that handles workers’ compensation and group health networks, while selling the pharmacy benefit, disease management and behavioral health services businesses. The acquisition was completed Aug. 6. At the time, it was an exception from the company’s strategy under new Chairman and Chief Executive Thomas Frist, who has said he wants to rein in Columbia’s rapid expansion of the last 10 years. Columbia shares fell 6 cents to close at $31.94 on the New York Stock Exchange. No buyers have been designated, Columbia said. Separately, officials in Arkansas, Kentucky, Massachusetts, Nevada, Utah, Washington and Wyoming told the Associated Press this week that they are examining whether Columbia overbilled state Medicare programs. More than a quarter of the 32 states that have Columbia hospitals have begun inquiries into the company. Separate inquiries are continuing by federal prosecutors, the National Assn. of Securities Dealers and private insurers into how the hospital chain does business. Columbia spokesman Jeff Prescott said: “We’re certainly willing to cooperate with states that are interested. And we hope to find anything ourselves through our internal review that might need to be done differently.”