This company of non-physician-owned medical centers just made a strategic agreement with a major hospital chain.
First Choice Healthcare Solutions, Inc. (FCHS)
From The Quiet Investor
First Choice Health Systems FCHS made two important announcements: one is the purchase of another piece of a surgery center in Melbourne, FL, giving the company majority control. It has been a consistently profitable portion of FCHS’ business.
The other announcement is even more important. It seems. A major hospital chain, Steward Healthcare, with 36 community hospitals nationwide and 37,000 employees, partnered with FCHS by buying 5 million shares of FCHS stock for $7.5 million, or $1.50 per share, at a time when the stock on the open market was trading for $1.40.
The result will be a 15% ownership in FCHS, two people on the board of directors, and a plan to bring FCHS’ methods of pain and spine care to the other hospitals in the chain. The stock has not done much since the announcements but certainly looks a lot more interesting than before. The stock was about $1 when the CEO made a presentation to the MicroCap Club in Chicago last September. It still seems a pretty modest price.
John Gay, The Quiet Investor, 32 Kyle Ct., Willowbrook, IL 60527, 630-654-1254, March 2018