Public sector buying spree; In a spate of Sunbelt deals, four publicly owned systems have bought five hospitals to adapt to market pressures.(Mergers and acquisitions)

Modern Healthcare, October, 2006

Byline: Melanie Evans

Opportunity knocks, even for healthcare's least likely buyers: public hospital systems.

In a string of Sunbelt acquisitions unveiled since Aug. 31, four public systems in Florida and North Carolina have bought five hospitals, including four sold by for-profit giants HCA, Nashville, and Tenet Healthcare Corp., Dallas.

The buyers-Carolinas HealthCare System, Charlotte, N.C.; Jackson Health System, Miami; Lee Memorial Health System, Fort Myers, Fla.; and Memorial Healthcare System, Hollywood, Fla.-inked the deals worth a combined $417 million over the past two months in a buying spree that is uncharacteristic for the public sector.

The deals underscore an effort by public hospitals-which frequently serve as the...

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