Medical Center officially buys Hughston

Jul 03, 2008 (Columbus Ledger-Enquirer - McClatchy-Tribune Information Services via COMTEX) -- HCA | Quote | Chart | News | PowerRating -- The Medical Center Hospital Authority officially has purchased Hughston Orthopedic Hospital and Rehabilitation Center for $59 million, officials announced Wednesday. The sale, which transfers ownership from national health care company HCA Inc., closed at midnight.

The local hospital authority had announced in April its plan to make the deal.

This is the second hospital the authority has purchased in the past four months. At the beginning of March, it closed on a $89.5 million deal for Doctors Hospital, also formerly owned by Nashville, Tenn.-based HCA, which no longer has a presence in the Columbus market.

The Hughston hospital's $59 million price tag will be paid for through tax-exempt short-term financing and permanent financing through tax-exempt bonds issued by the authority.

With the purchase, the 100-bed Hughston facility off Veterans Parkway becomes locally owned and not-for-profit. Officials said this means the hospital no longer will have to answer to shareholders and all profits will be reinvested into community health and medical services.

"We want to be certain that the continuation of the extraordinary programs at Hughston Hospital -- driven by the Hughston Clinic -- remain in the hands of Columbus for the future," said Larry Sanders, chairman and chief executive officer of Columbus Regional Healthcare System, which owns The Medical Center.

The authority has agreed to let Columbus Regional, a nonprofit health services organization, manage Hughston Hospital. The Medical Center Hospital Authority, whose nine members are nominated by Columbus Council, promotes community health care interests through the support of Columbus Regional and its affiliates.

Sanders said Hughston Hospital orthopedic and rehabilitation services will complement and round out Columbus Regional's offerings. Columbus Regional operates several other local health-care facilities, including The Medical Center, Doctors Hospital, John B. Amos Cancer Center, Columbus Regional Breast Care Center, Columbus Regional Brain and Spine Center, and the Spring Harbor at Green Island retirement community.

"It adds a tremendous strength in orthopedics," said Lance Duke, interim CEO at Hughston Hospital.

Clinic separate

Hughston Hospital's medical staff comprises mostly physicians from Hughston Clinic, a private practice which shares a campus but is not affiliated with the hospital.

In February, seven Hughston Clinic physicians announced they would purchase Phenix City's Summit Hospital from Nashville, Tenn.-based Ameris Health Systems LLC for $47.7 million. The hospital was renamed Jack Hughston Memorial Hospital.

Hughston Clinic doctors still work out of Hughston Hospital, but the hospital has lost patient volume since the hospital purchase.

"Hughston Clinic will continue to support both hospitals, Jack Hughston Memorial Hospital and Hughston Orthopedic Hospital," said John Carroll, spokesman for Hughston Clinic. "We are happy to see that Hughston Orthopedic Hospital now has local ownership.

"The administrators and surgeons have an excellent relationship with Larry Sanders and the leadership at Columbus Regional. We don't anticipate any problems with a working relationship with that organization."

Sanders said he hopes Hughston Clinic's growth will translate into higher patient volume at Hughston Hospital, which may add more doctors to its medical staff as well. He also said Hughston Hospital's 10 operating rooms can help serve capacity needs.

No job cuts

As for immediate changes, Columbus Regional officials said no job cuts are expected with the acquisition. The approximately 450 employees at Hughston Hospital will continue working there if they choose. Compensation and benefit levels will be similar to what HCA offered.

There will be no immediate changes in the services offered at Hughston Hospital, either. It will remain an orthopedic and rehabilitation facility and will keep its name.

It is unclear whether services will expand to include more than orthopedics and rehabilitation.

"That is possible but certainly not on the horizon right now," Duke said.

Duke, president and chief executive officer of The Medical Center, succeeds Don Avery, Hughston Hospital's former CEO. Avery decided to remain with HCA after plans for the sale were announced and was named president and CEO of Fairview Park Hospital in Dublin, Ga., in May.

When The Medical Center Hospital Authority purchased Doctors Hospital, Duke served as interim CEO there as well. Sanders said Duke temporarily is out of his day-to-day responsibilities at The Medical Center and will decrease those at Doctors Hospital as he moves to Hughston Hospital.

"I have every confidence that this will work well," Sanders said.

No one has been interviewed for either CEO position at Doctors Hospital or Hughston Hospital, but Sanders said they are considering candidates.

Now that the deal has closed, Duke said he and Columbus Regional are ready to get to know the hospital, its medical staff and employees.

"We're very excited about this," said Tom Titus, senior vice president of Columbus Regional. "This has been something we've been anticipating for a long time now, even before we'd closed for Doctors Hospital."

"We're ready to get on the ground," Duke said.

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