HCA completes $1.5B acquisition of Mission Health

Nashville-based HCA Healthcare completed its purchase of Mission Health for approximately $1.5 billion.

Mission Health is a six-hospital system based in North Carolina. The two healthcare organizations signed a definitive agreement in late August, and the North Carolina Attorney General’s Office approved the deal on Jan. 16. The deal brings HCA’s total number of hospitals to 185, and roughly 1,800 sites of care across 21 states and the U.K.

The deal closure comes months after HCA CEO, R. Milton Johnson, announced his retirement at the end of 2018. Sam Hazen, the company’s COO and president, took over the CEO role Jan. 1.

Mission Health, which has been recognized as one of the nation’s top 15 health systems by IBM Watson Health, is operating as a division of HCA Healthcare. HCA is providing assurances that certain healthcare services will be maintained.

“The team at Mission Health has been nationally recognized for providing high-quality patient care, and we’re excited that they’ve joined HCA Healthcare,” Hazen said in a statement. “We’re looking forward to investing in western North Carolina and helping ensure Mission Health’s 133-year tradition of caring for communities throughout the region continues for many years.”

The combined entity has put forth several commitments for North Carolina, including building a 120-bed inpatient behavioral health hospital in Asheville and a new replacement hospital for Angel Medical Center in Franklin.

In addition, HCA will complete a new state-of-the-art Mission Hospital for Advanced Medicine in Asheville and invest $232 million in capital in Mission Health facilities. HCA further plans to create a $25 million Innovation Fund focused on improving healthcare service delivery and spurring economic development, while Mission Health will adopt HCA’s charity care policy.

HCA was rumored to be considering a purchase of physician services company Envision Healthcare during 2018, though the company was sold to KKR for $9.9 billion without involvement from HCA.