Following the completion of its deal with Steward, HCA Healthcare will enter into a 15-year master lease with MPT for the five facilities. There will be no change to the cash rent that is owed to MPT under its existing master lease with Steward.

HCA will have five extension options of five years each, with rental payments increasing annually at CPI and subject to a 2% floor and 5% ceiling. HCA Healthcare will also have certain options for purchasing the facilities starting in 2028, and MPT will have certain options to sell them to HCA Healthcare, according to Edward Aldag Jr., MPT’s chairman, president and CEO. “The resulting new 15-year lease with HCA Healthcare strongly validates our initial underwriting and $1.2 billion purchase price for these properties.”

The deal follows another major M&A agreement out west this past week, in which Intermountain Healthcare agreed to merge with SCL Health into a $14 billion operation made up of 33 hospitals and 385 clinics across Utah, Idaho, Nevada, Colorado, Montana and Kansas.

Meanwhile, Steward announced earlier this month that Macquarie Infrastructure Partners V would acquire a 50% interest in eight of its hospitals in Massachusetts, with Medical Properties Trust planning to use $1.3 billion for the purchase to repay debt and fund its Springstone inpatient behavioral health facility transactions, according to Modern Healthcare.

Both of HCA's agreements with Steward and MPT are expected to be completed in the first half of 2022 and are subject to certain regulatory approvals and other customary conditions.

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