Nov 2
HealthTrust Purchasing Group (HPG) is founded.

A health care group purchasing organization, HPG is founded by the former materials management team at HCA. The company’s founding reflects the entrepreneurial nature and innovative thinking of Nashville health care. HPG goes on to manage supply contracting for leading providers across the United States.

Nov 2
Columbia/HCA spins off LifePoint Hospitals and Triad Hospitals.

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…

Nov 2
New American Healthcare Corp. is founded.

Brentwood-based New American Healthcare Corp. launches and quickly begins acquiring and operating rural, acute-care hospitals throughout the United States. NAHC starts with $50 million in capital committed by Welsh, Carson, Anderson & Stowe. Founder Robert Martin will serve as CEO and chairman of the board until one year before NAHC files for bankruptcy in 2000….

Nov 2
Arcon Healthcare is founded.

Investors dole out $20 million for the latest offering from Hud Connery, the former COO of HealthTrust. Years before the idea catches on nationwide, Connery proposes “hospitals without beds” — high-tech, 24-hour clinics providing emergency care and outpatient surgery to small towns without emergency rooms. The costs of implementation outweigh the demand, however, and the…

Nov 2
Heritage Health Systems is founded.

Heritage Health Systems is created as a managed-care organization, focusing mainly on Medicare. The founding comes via a $20-million investment by New York-based Sprout Group. Eventually, co-founders Rock Morphis and David McClellan will sell their organization to Universal American Financial Corp. for $98 million in 2004. After selling, entrepreneurs Morphis and McClellan go on to…

Nov 2
InterMed is founded.

Jim Lackey’s company is founded as InterMed, LLC, a bootstrap-shop building websites for physicians, hospitals and insurance companies. Later in the first year, it accepts angel investor money from health care leaders in the Nashville area and expands into Internet-based insurance eligibility verification. It will be incorporated as Passport Health Communications, Inc. in 1998. In…

Nov 2
Clayton Associates launches.

A signal of the entrepreneurial momentum in the Nashville health care community, former HealthTrust and HCA/Columbia CEO R. Clayton McWhorter launches a venture capital firm along with son Stuart McWhorter and Bill Cook. In less than 20 years, Clayton Associates and its affiliates will invest in more than 100 companies, representing greater than $7 billion…

Nov 2
Province Healthcare Company is founded.

Former CHS EVP and COO Martin Rash founds Province Healthcare, originally named Principal Hospital Company, as a hospital operator startup. The company is funded by Chicago-based investment fund GTCR and, like a number of new companies at the time, focuses on management contracts in non-urban markets. In two years, Province Healthcare will go public with…