Saturday, October 17, 2015
BayCare Health System Inc. has signed a deal to buy Bartow Regional Medical Center from Community Health Systems Inc.
Financial terms were not disclosed in a press release announcing the deal.
Sale proceeds are estimated in the $25 million range by Chris Rigg, an analyst at Susquehanna Financial Group. He based that on a transaction multiple of 0.5 times revenue. That would be in line with precedent transactions, Rigg wrote in an Oct. 16 report.
Bartow Regional, with 72 beds, is among the smallest hospitals in Tampa Bay. The facility had net operating revenue of $51 million in 2013, according to Tampa Bay Business Journal’s most recent List of hospitals. Rigg estimated the hospital generated about $48 million in net patient revenue and $2.5 million of earnings before taxes, interest, depreciation and amortization in the 12 months ended March 31, 2014.
BayCare is the largest nonprofit health care system in the area, with 14 hospitals and just under $3 billion in total operating revenue in 2014. The system acquired another Polk County hospital, Winter Haven Hospital, in August 2013.
Community Health Systems (NYSE: CYH) owns Bayfront Health St. Petersburg and six other Tampa Bay area hospitals, in addition to Bartow Regional. The Bartow sale is the system’s second recent hospital divestiture in Florida after announcing a deal to sell Lehigh Regional Medical Center in Lehigh Acres on Sept. 21.
The Bartow sale is expected to close by the end of 2015.
bizjournals.com
