In an effort to decrease in size, HCA spins off 57 hospitals and creates two new companies focused on small, rural hospitals: LifePoint Hospitals and Triad Hospitals.
LifePoint Hospitals Inc., initially comprised of 23 rural hospitals across the Southeast, is put in the hands of Scott Mercy. The company goes public in 2001, and three years later, acquires Nashville-based Province Healthcare Company, growing to encompass 50 hospitals across 19 states. In May 2015, the company will officially change its name to LifePoint Health.
Triad is originally made up of 34 rural hospitals and run by former Columbia/HCA exec Denny Shelton, who will serve as chairman and CEO of the organization for eight years. Under Shelton’s leadership, Triad grows to become the third largest health care provider in the U.S. In 2000, Triad acquires a fellow HCA spinoff, Quorum Health Group. The company will be acquired by Community Health Systems in 2007 for $5.1 billion.