Industry veterans start hospital company

Two former Province Healthcare executives have started a company to acquire, build and operate acute-care hospitals in nonurban markets.

Daniel Slipkovich and Tom Anderson secured a commitment of up to $200 million in equity capital to launch the hospital company. The financing, announced May 4, was arranged through a partnership with the Chicago investment firm GTCR Golder Rauner LLC.

The new company, Capella Healthcare Inc., is based in Brentwood, Tenn., and will focus on hospitals with revenues of $35 million or more in growing, nonurban markets. This could put Slipkovich, Province's former president and chief operating officer, and Anderson, who was a Province vice president, in direct competition with some of their former colleagues. That's because Province was acquired earlier this year by Brentwood, Tenn.-based LifePoint Hospitals Inc., which also focuses on hospitals in nonurban areas.

Anderson said he and Slipkovich feel comfortable pursuing hospitals in rural areas because they have experience in those markets. "It's the approach. We feel like we will do very well in nonurban settings because we spend a great deal of time in those communities establishing relationships."

Capella will likely buy two or three hospitals per year, Anderson said, though he couldn't specify a target number the company will try to attain.

But Capella may get a big boost to start. Anderson said the company is interested in all 10 hospitals that HCA Inc. is trying to shed as part of a divestiture program announced in March. The hospitals are located primarily in nonurban areas in six states.

Anderson thinks Capella could have more success with those hospitals than HCA did.

"We're willing to spend time in the community and work and build relationships. That's what we've done in our past and it's not an indictment or accusation against anyone. It's just a matter of spending time with the docs and understanding their needs on a daily basis," he said.

Slipkovich is chief executive of the new company and Anderson is president.