New Hampshire hospital poised to gain new ownership

HCA Healthcare’s planned purchase of Catholic Medical Center in New Hampshire is moving forward.

HCA Healthcare is acquiring Catholic Medical Center, based in Manchester, New Hampshire. The state's attorney general has signed off on the deal.

New Hampshire Attorney General John M. Formella signed off on the deal earlier this week, paving the way for the Catholic hospital to join the nation’s largest for-profit hospital system. Catholic Medical Center has been losing money in recent years and sought to join HCA to secure its future. Catholic Medical Center says the deal is expected to close within weeks.

As part of the agreement, Formella is requiring HCA to commit to adding beds and investing millions of dollars into its hospitals in New Hampshire. HCA also agrees to maintaining some key services after the deal is closed.

“This settlement represents a thoughtful approach that both addresses the insurmountable financial challenges CMC is facing and ensures that the healthcare needs of New Hampshire residents continue to be met,” Formella said in a statement. “Through this transaction, HCA’s financial stability and commitment to preserving essential services will secure a future for CMC and its patients.”

HCA is acquiring the hospital in a $110 million transaction, the New Hampshire Union-Leader reported.

Catholic Medical Center is licensed for 330 beds and employs more than 3,000 workers. But as Formella noted, the hospital has grappled with serious financial difficulties.

In papers filed with the New Hampshire Charitable Trusts Unit last year, Catholic Medical Center said it "faces monthly losses ranging from $2 - $3 million."

“As a result, the Hospital no longer has access to the capital necessary to invest in its facilities, technologies, and labor force,” the medical center said in those papers.

The hospital reduced staffing in April 2024 due to its financial challenges. The medical center pointed to rising labor costs, the challenges of caring for one of the oldest populations in the country, and dealing with a serious opioid and substance use disorder crisis.

Alex Walker, president & CEO of Catholic Medical Center, acknowledged the financial struggles and pointed to better times ahead by joining HCA Healthcare, including the ability to expand healthcare services. Walker told New Hampshire Public Radio last fall that joining HCA is essential to maintain the hospital’s viability.

“After an extensive, multi-year effort to secure the future of CMC, we are excited to partner with HCA Healthcare, a proven leader in delivering high-quality healthcare in New Hampshire for over 40 years,” Walker said in a statement. “This partnership guarantees the preservation of Catholic healthcare while enhancing our ability to serve the community.”

Under the deal, HCA would continue to operate the medical center as a Catholic institution.

HCA Healthcare runs three hospitals in New Hampshire: Portsmouth Regional Hospital, Parkland Medical Center, and Frisbie Memorial Hospital.

The agreement with the attorney general’s office calls for HCA to commit to adding 10 beds at each of its New Hampshire hospitals within two years of closing the deal. The attorney general’s office noted that it will be part of HCA’s $200 million commitment to improving healthcare services in New Hampshire.

HCA Healthcare has said it plans significant upgrades of clinical services, including the New England Heart & Vascular Institute, emergency and trauma services, oncology, cancer care, and more.

Under the agreement with the attorney general, HCA also pledges to maintain certain critical services at Catholic Medical Center, including pregnancy care and emergency behavioral health services, for at least 10 years following the closing of the deal.

HCA has pledged to contribute $2 million over the next three years to community health initiatives. The agreement also calls for the payment of $7.5 million, over 10 years, to the Healthcare Consumer Protection Trust Fund, which will be used to support community health programs in Manchester.

HCA and Catholic Medical Center first announced they were exploring a merger in October 2023. HCA and the hospital announced an agreement on a purchase in July 2024.

Tim Riley, chairman of the Catholic Medical Center’s board of trustees, said in a statement that joining HCA “represents a defining moment for Manchester and all of New Hampshire.

“It ensures access to high-quality care close to home, preserves our Catholic mission and positions CMC to grow and adapt to the evolving needs of our patients,” Riley said. “We are confident this decision will strengthen healthcare throughout the region for years to come.”

Dr. William Lunn, president of HCA Healthcare’s Capital Division, said the transaction will begin the “next bright chapter in CMC’s history providing health, healing and hope to the Manchester community.”

“As part of HCA Healthcare, CMC and our new colleagues will have access to much-needed resources that will pave the way for financial stability and continued growth,” Lunn said in a statement. “We are committed to making significant capital investments and enhancing key service lines that will benefit not only Manchester patients but patients across New Hampshire with expanded choice and ensure they have the highest-quality care available close to home.”