Centra care’s $4.3 billion hospital deal with CareHealth is ‘good news for all’
CENTRA CARE is announcing it is closing a $4 billion deal with a hospital in Houston that it says is good news for the region.
In a statement, CentraCare said its plan to close the deal is part of a broader plan to reduce costs in a region that is expected to experience $1.7 billion in job losses in 2019, and is expected spend about $1 billion on medical services in the next four years.
The agreement between Centra and Houston-based CareHealth, which provides health care services to about 9,000 patients in Houston, covers a variety of services including dental, vision, outpatient and inpatient care, emergency medical services, and dental treatment and rehabilitation.
The company also announced it will pay $3.9 billion in dividends.
The deal also includes an option to buy shares for $2.50.
CentraCare is the latest company to announce its plans to cut costs in the Houston area.
In June, the hospital operator announced a plan to lay off nearly 400 employees.
In July, it said it would close its two largest hospitals, a decision that had prompted a nationwide health crisis.