In the mid-1960s, Dr. Frist, Jack C. Massey and Dr. Thomas Frist, Jr. came together with the dream of meeting “a community need for superior hospital care at the lowest possible cost.” By 1968 our founders had formed their own hospital management company – Hospital Corporation of America, today known simply as HCA.
Soon HCA decided to expand the scope of its venture by assembling a group of hospitals in order to create economies of scale and enhance the quality of care in communities across the country. HCA worked closely with local physicians and used innovative business practices to improve quality and reduce costs.
The company grew rapidly, building new hospitals in under-served communities, acquiring facilities and contracting to manage hospitals for other owners. With 11 hospitals, HCA filed its initial public offering in 1969. By the end of the year, HCA had 26 hospitals and 3,000 beds. The company invested capital to ensure that hospitals met the needs of their local communities. And while HCA provided support and resources to its facilities, hospital management decisions were made locally.
The 1970s were characterized by rapid growth in the industry and also for HCA. By the end of 1981, the company operated 349 hospitals with more than 49,000 beds. Operating revenues had grown to $2.4 billion.
In 1987, HCA, which had grown to operate 463 hospitals, spun off HealthTrust, a privately owned, 104-hospital company. Believing its stock was undervalued, the company completed a $5.1 billion leveraged buyout in 1988. HCA reemerged as a public company in 1992.
In February 1994, HCA merged with Columbia, which had acquired Galen Health Care in September 1993. The new company then acquired Medical Care America and several other healthcare businesses, quickly building a comprehensive healthcare network.
In 1997, Dr. Frist, Jr. returned as Chairman and CEO and immediately announced plans to restructure the company and focus on providing high quality healthcare through a core group of market leading hospitals.
In May 1999, HCA completed the spin-offs of LifePoint and Triad Hospital groups.
On November 17, 2006, HCA became a private company for the third time when it completed a merger in which the company was acquired by a private investor group including affiliates of Bain Capital, Kohlberg Kravis Roberts & Co. and Merrill Lynch Global Private Equity, and HCA founder Dr. Thomas F. Frist, Jr. The total transaction was valued at approximately $33 billion, making it the largest leveraged buyout in history at the time.
Currently, Richard M. Bracken serves as the company’s Chairman and Chief Executive Officer.
Based in Nashville, Tenn., today HCA remains the nation’s leading provider of healthcare services, composed of locally managed facilities that include approximately 166 hospitals and 112 outpatient centers in 20 states and England.