HCA Cancels Sale of Psychiatric Subsidiary

OPEN MINDS The Behavioral Health Industry Analyst Industry News Hospital Corporation of America (HCA) has canceled the $1.3 billion sale of its psychiatric-hospital subsidiary to an employee stock ownership plan (ESOP). Industry analysts speculated that the soft junk-bond market; recent legislation removing the tax incentives for some ESOPs; the proceeds of HCA's sale of Equicor generating needed cash; dissatisfaction with the selling price; and softness in the company's psychiatric business could all have contributed to the action. HCA is planning on owning and operating the psychiatric unit for at least another year . . .