|Reprinted from the July 17, 1995, issue of MODERN HEALTHCARE
Copyright, Crain Communications Inc., 740 Rush Chicago, IL 60611 All rights reserved
|By Jay Greene|
|AvMed snubs Columbia for Fla. network|
|AvMed-SantaFe, a Gainesville, Fla.-based healthcare system, has signed a letter of intent to sell its six hospitals to 546-bed Shands Hospital at the University of Florida in Gainesville.
In choosing Shands, AvMed turned down an unspecified offer from Columbia/HCA Healthcare Corp.
Terms of the transaction with Shands were not disclosed. If the deal closes as expected within 90 days, the university’s network will include seven hospitals with nearly 1,300 beds located in the Gainesville area. AvMed’s largest hospital is 405-bed Alachua General Hospital in Gainesville.
AvMed has agreed to use part of the proceeds to fund two foundations: one to provide funds for research and the other to offer subsidies to low-income individuals to purchase managed-care insurance, said Josh Nemzoff, a financial consultant in Nashville who arranged the deal.
“We are compatible, not-for-profit organizations with a common tradition of meeting the healthcare needs of the people in this area,” said Joe G. Dunlap, AvMed chairman.
Not part of the deal is AvMed Health Plan, a 265,000-enrollee HMO, which contracts with more than 100 hospitals and more than 5,000 physicians.
Last month AvMed joinged American Healthcare Systems, an alliance that includes hospital-based systems with strong managed-care components (May 1, p. 4). Shands is a member of Sun-Health Alliance, Charlotte, N.C.