Our History
Capella Healthcare has emerged as a national leader in the development and operation of healthcare facilities in non-urban markets. The Company was founded in May of 2005 by seasoned healthcare professionals with a vision to provide clinical, operational and financial expertise to community hospitals in order to make a positive difference in the local healthcare environment.
Capella is a privately-held company with significant financial resources. Based on the experience and vision of its founders in 2005, Capella partnered with GTCR Golder Rauner, a successful investment firm, which made a remarkable $200 million equity commitment to Capella – a commitment that has allowed the company to grow steadily. GTCR Golder Rauner has since committed an additional $200 million to Capella for new growth opportunities.
In November of 2005, Capella Healthcare acquired its first four hospitals from HCA, including:
- Capital Medical Center (Olympia, WA)
- Grandview Medical Center (Jasper, TN)
- River Park Hospital (McMinnville, TN)
- Southwestern Medical Center (Lawton, OK)
In April 2007, Capella entered into a lease arrangement with the Muskogee Regional Health Center Trust Authority, a public trust, to lease Muskogee Regional Medical Center (Muskogee, OK) for $120 million for a term of 40 years. City officials created the City of Muskogee Foundation as a nonprofit corporation from the net proceeds of this sale. With a mission to make a real difference, the Foundation was established for the purpose of effectively developing, supporting, promoting, and improving programs and facilities relating to education, arts, culture, community revitalization and beautification, social services, health care, economic development, infrastructure, housing, and recreation for Muskogee and surrounding areas and to improve the quality of life of residents of Muskogee.
In February of 2008, Capella acquired nine hospitals from Community Health Systems, adding communities in four more states to the existing three, including:
- Hartselle Medical Center (Hartselle, AL)
- Jacksonville Medical Center (Jacksonville, AL)
- Mineral Area Regional Medical Center (Farmington, MO)
- National Park Medical Center (Hot Springs, AR)
- Parkway Medical Center (Decatur, AL)
- St. Mary’s Regional Medical Center (Russellville, AR)
- White County Community Hospital (Sparta, TN)
- Willamette Valley Medical Center (McMinnville, OR)
- Woodland Medical Center (Cullman, AL)*
In the summer of 2010, Capella completed a public debt financing transaction that positioned the Company for future growth. By taking advantage of attractively priced long-term funding, the Company secured $500 million in senior unsecured notes as well as a $100 million asset-based revolving credit facility. In realigning the Company’s capital structure, Capella now has even greater strength and flexibility in pursuing growth strategies for both the immediate and long-term future.
* Woodland Medical Center was divested in July 2009.