|Reprinted from the July 17, 1995, issue of
Copyright, Crain Communications Inc., 740 Rush Chicago, IL 60611 All
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
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.
John V. Lombardi, president of the University of Florida, said the
acquisition will enhand the university’s delivery system and make its
network more attractive to managed-care payers.
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.