HCA Healthcare to become one of MPT’s top tenants

pharmafile | September 22, 2021 | News story | Research and Development  

Medical Properties Trust (MPT) and HCA Healthcare have agreed to a 15-year master lease for hospitals representing $1.2 billion of MPT assets. This follows HCA Healthcare’s agreement to purchase the operations of five Utah facilities from Steward Health Care System.

Birmingham, Alabama based MPT has a purchase price of $1.2 billion for the Utah hospitals, which represents approximately 5% of the company’s total pro forma gross assets, placing HCA Healthcare among MPT’s five largest tenants.

The completion of the HCA Healthcare master lease and the closing of the sale are expected in the first half of 2022, depending on regulatory approvals.

Under the current master lease agreement, there is no change to the cash rent payable to MPT. The new agreement will include five extension options of five years each, and rental payments will increase annually at CPI, subject to a 2% floor and 5% ceiling. Starting in 2028, HCA Healthcare will have the opportunity to purchase the facilities, while MPT have the option to sell the facilities to HCA Healthcare.

Edward K Aldag-Jr, MPT’s Chairman, President, and CEO, commented: “We are excited to welcome HCA Healthcare to our family of world-class hospital operators. HCA is a well-known industry leader with a proven track record of improving patient care by leveraging its learning health system model capabilities.”

After being founded in 2003, MPT has grown to become one of the world’s leading owners of hospitals, with approximately 440 facilities and 46,000 licensed beds in nine countries and across four continents.

Lina Adams

 

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