HCA Healthcare finalizes Catholic Medical Center acquisition for $110 million

HCA Healthcare has completed its acquisition of Catholic Medical Center (CMC) in Manchester, New Hampshire, for $110 million as confirmed by Healthcare Dive. The acquisition follows CMC's financial distress exacerbated by rising expenses, loss of revenue from anesthesia services, and failed electronic medical records implementation. The facility, critical for 330-bed acute care, was on the verge of insolvency, which spurred New Hampshire Attorney General's office to approve the sale with several stipulations. These include HCA's commitment to a $200 million investment to enhance healthcare capacity and maintain vital services for a decade. CMC projected a $41.5 million loss for the 2024 fiscal year and carried about $160 million in debt, leading credit agencies S&P and Moody’s to downgrade their ratings of CMC, underscoring the deal’s urgency. Despite HCA's previous reductions in services elsewhere, New Hampshire's prioritization of local healthcare needs enabled this deal. Different regulatory procedures for handling distressed deals, such as that of FTC's recent intervention in North Carolina, are expected to become critical in the coming year.