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It's a seller's market; Big Three's sales aren't enough to flood market.

Publication: Modern Healthcare
Publication Date: 21-AUG-06 		Format: Online
Delivery: Immediate Online Access
Full Article Title: It's a seller's market; Big Three's sales aren't enough to flood market.(The Week in Healthcare)(HEALTHSOUTH Corp.)(Tenet Healthcare Corp.)(HCA Inc.)

Article Excerpt
Byline: Vince Galloro

With the divestiture plans announced last week by HealthSouth Corp., "For sale'' signs now hang on three of the biggest names in healthcare services-HealthSouth, HCA and Tenet Healthcare Corp.-in one way or another.

Does that make this a buyer's market for healthcare services? Some buyers themselves and an analyst said last week that the paring of facilities by HealthSouth and Tenet haven't had that effect, and the driving force behind HCA's leveraged-buyout deal-private equity-is actually a sign of a seller's market for healthcare facilities.

HealthSouth, Birmingham, Ala., said last week that it will focus the company on its core inpatient rehabilitation business by selling or spinning off three smaller, less profitable divisions: ambulatory surgery centers, outpatient rehabilitation and diagnostic imaging. The inpatient rehabilitation division accounts for nearly 60% of HealthSouth's net revenue and more than 85% of its operating earnings (See chart).

Last month, HCA, Nashville, said that it was being acquired by private equity groups, the founding Frist...

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