In the 1960s,
Dr. Thomas Frist, Sr. led an effort by a group of physicians to build Park View
Hospital in Nashville, Tenn. By the mid-1960s, Dr. Frist and other Park View
physicians were seeking a group to manage the hospital and provide capital to
expand and to maintain the latest medical technology. In 1968, Dr. Frist, Jack
C. Massey and Dr. Thomas Frist, Jr. 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. One of the nation's first hospital
companies, HCA worked closely with local physicians and used innovative
business practices and private capital 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.
Using its financial resources, management expertise and medical background, HCA
focused on a core group of market-leading hospitals, an operating strategy it
employs today.
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.
In the early 1980s, the focus shifted to consolidation with HCA acquiring
General Care Corporation, General Health Services, Hospital Affiliates
International and Health Care Corporation. 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 (255 owned and 208
managed), 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 re-emerged as a public company in 1992.
In February 1994, HCA merged with Columbia, which had acquired Galen Health Care
(formerly Humana) in September 1993. The new company then acquired Medical Care
America and several other healthcare businesses, quickly building a
comprehensive healthcare network. At its peak, the $20 billion company had
approximately 285,000 employees, more than 350 hospitals, 145 outpatient
surgery centers, 550 home care agencies and several other ancillary businesses.
In 1997, Dr. Frist, Jr. and Jack O. Bovender returned as Chairman and CEO and
Chief Operating Officer, respectively. Immediately together, they announced
plans to restructure the company and focus on providing high quality healthcare
through a core group of market leading hospitals. HCA sold its non-hospital
businesses as well as several facilities that did not fit the company's
strategy. Bovender now serves as Chairman and CEO while Dr. Frist, Jr.
continues to serve on the company's Board of Directors. Richard M. Bracken is
HCA's President and Chief Operating Officer.
Based in Nashville,
Tenn., today HCA remains the nation's leading provider of healthcare services.
Our patients consistently give us very high satisfaction scores, with over 90%
of our inpatients telling us that they would return to one of our hospitals if
they needed to be hospitalized again. HCA is composed of locally managed
facilities that include approximately 191 hospitals and 82 outpatient surgery
centers in 23 states, England and Switzerland.