Largest Public Hospital Company in U.S. Created in $5.1 billion Deal

And with a signature and a promise of $5.1 billion – Community Heath Systems Inc. has created the largest public hospital in the U.S. by buying Triad Hospitals Inc.

Community Health, based in Franklin, Tenn., will pay $54 a share for Plano, Texas-based Triad, the companies said in a statement Monday –  $3.75 a share higher than the offer presented Feb. 5 by CCMP Capital Advisors LLC and Goldman Sachs Capital Partners.

The acquisition expands Community Health in to more than 140 medical facilities in 28 states.  That kind of wide exposure might seem risky; profits of other hospital chains like Tenet Healthcare Corp. and HCA Inc. have been hurt by unpaid medical bills.  Community Health, however, has turned a profit every quarter since 2000.

However, the buyout of Triad means that Community Health is taking on hospitals with more uninsured patients in competitive markets.

The transaction is conditioned on approval by shareholders and regulators.