Today Franklin-based Community Health Systems becomes the largest publicly-traded hospital operator in the country. It acquired Triad Hospitals in a 6.8-billion dollar deal.
Dallas-based Triad had been shopping for buyers since early this year, and it’s purchase by Community Health Systems makes for a publicly-traded powerhouse. The two companies run nearly 150 hospitals and surgery centers with 90-thousand employees.
Jeffries and Company analyst Frank Morgan says the merger could save the companies 80-million dollars a year in shared costs. It also comes at a time when Triad is expecting some hospital purchases to begin producing revenue.
“Triad had made some very significant capital investments over the last couple of years that may be at the point that they’re starting to show some really nice returns.”
Morgan also says the sheer size of Community Health could give it some additional credibility with institutional investors. While the company will take the top spot for publicly-traded hospital operators, HCA is still more than twice its size. However, HCA went private last year in a 33-billion dollar deal.
And in the healthcare industry it does seem all roads lead back to HCA. Triad is a 1999 spin-off of the company.
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