etitor Humana, Inc., at a cost of $3.2 billion. However, Columbia made a significant transaction on February 10, 1994, when it merged with HCA. At the time of the purchase, HCA owned 97 hospitals and generated approximately $5 billion in annual revenues. In September 1994, Columbia/HCA also acquired Medical Care America, Inc., for $858 million. The key goals of the Galen and HCA mergers were the realization of at least $160 million in annual synergies. Columbia renegotiated with supply contracts, and consolidated various functions. They also created synergy along the value chain, and expanded their regional base. With the purchase of Keystone Home Health, Inc., and hundreds of independently established home care agencies, Columbia continued to expand into all areas of health care. HealthTrust, Inc. was acquired on April 24, 1995 for $3.6 billion in stock. This new addition strengthened Columbias delivery network in several markets. With this stronger market position, Columbia was able to reduce operating costs by sharing additional services. The company also acquired Value Health in August 1997, in a stock deal worth $1.2 billion. As a result of regulations limiting the number of home care providers, acquisitions had become Columbias only means for expansion into new home care markets. New, substitute companies were posing threats, so Columbia decided to buy them up. Columbia/HCA managed to diversify business by integrating the Medical Care outpatient surgery centers into the companys existing delivery network. This allowed Columbia to expand the scope of services available in these markets to include low-cost settings for outpatient surgical procedures. The HealthTrust facilities also contributed to Columbia, by adding geographic coverage to the companys network.Financial Analysis with respect to competitorsColumbia/HCAs major competitors include Tenet Healthcare, Humana Healthcare, Apria Healthcare, and PacifiCare Haelt...
