Columbia/HCA Healthcare Corp. has reluctantly agreed to sell three of its Utah hospitals in order to salvage its $5 billion nationwide merger.
The three Utah hospitals are Columbia's 120-bed Davis Hospital and Medical Center in Layton, HealthTrust's 50-bed Jordan Valley Hospital in West Jordan and HealthTrust's 139-bed Pioneer Valley Hospital in West Valley City."We are not happy about this decision," said Kent Wallace, currently Western Region vice president for HealthTrust and the appointed district president for IHC/Columbia. The action was at the request of the Federal Trade Commission.
Wallace believes Utahns will be harmed by this decision through a less-efficient health care delivery system. He said a complete network - a critical mass of facilities - is needed to be competitive in the Utah health-care market. The FTC decision will reduce the company's Utah facilities from 10 to seven hospitals - including just one in Salt Lake County.
"I feel very badly for our hospitals and employees . . . People are stunned at this point. They don't understand the logic . . . It creates uncertainty," Wallace said.
Ashley Valley, Brigham City, Castleview, Lakeview, Mountain View, St. Mark's and the Ogden Regional Medical Center will be Columbia/HCA's only remaining facilities in Utah.
"Our goal has always been to be an alternative health-care delivery system for the people of Utah, and this decision makes our road a little bumpier," Wallace said. "But rest assured we are committed to the people of Utah and to delivering top-quality, compassionate care."
At least 60 days will be needed to get the hospitals on the market and a year to totally divest them. Wallace said there is speculation the University of Utah is interested in the three hospitals.
There is a 30-day comment period on the required sale, and Wallace encourages concerned Utahns to let Utah politicians known about their opinions on this latest anti-trust requirement.
"It's apparent to me that there are organizations in this state which are against the development of another strong competitor," Wallace said.
Although he has no ill will against Intermountain Health Care, the FTC decision will leave it with a monopoly of 18 hospitals and more than 50 percent of the hospital beds in the state, Wallace said.
Wallace said the FTC doesn't understand health-care reform or that Utah is an extremely mature health-care market.
"They made a gross mistake," he said, explaining only Florida comes close to Utah in health-care market concentration. "Utah has been on the bleeding edge of anti-trust."