The following hospital transaction developments have taken place in the last two weeks, beginning with the most recent.
1. Vanguard Finalizes JV With Valley Baptist Health in Texas
Nashville, Tenn.-based Vanguard Health Systems finalized the terms of a joint venture with Valley Baptist Health Systems, based in Harlingen, Texas. Under the deal, Vanguard acquired a 51 percent interest in the assets of VBHS, an 866-bed health system. Vanguard's cash investment in the joint venture was approximately $210 million.
2. CHS Sells Two Oklahoma Hospitals to Ardent Health
Franklin, Tenn.-based Community Health Systems sold two of its Oklahoma hospitals to Nashville, Tenn.-based Ardent Health Services. SouthCrest Hospital in Tulsa and Claremore (Okla.) Regional Hospital are now affiliates of Hillcrest HealthCare System, which is part of Ardent and based in Tulsa, Okla. The privately-held Ardent proposed the sale to expand its network of hospitals in Tulsa.
3. Missouri's Mercy to Acquire Logan Medical Center in Oklahoma
Chesterfield, Mo.-based Mercy struck an agreement with Logan Medical Center in Guthrie, Okla., to acquire it and its four clinics. Under the deal, which will be finalized Oct. 1, the 25-bed LMC will become Mercy Hospital Logan County. LMC's four clinics, which will also be owned by Mercy, are located in Guthrie, Crescent and Edmond.
4. New York's Peninsula Hospital May Be Purchased by Revival Home Health Care
Financially strapped Peninsula Hospital in Faraway Rock, N.Y., may be purchased by a home healthcare company. Peninsula Hospital, which reportedly owes nearly $13 million to vendors, $2 million to the nursing home and still more to the union, considered closing but now may be purchased by Revival Home Health Care, a for-profit healthcare company that primarily serves the Orthodox Jewish community.
5. Georgia's Polk Medical Center in Management Talks With Floyd Healthcare Management
The Cedartown-Polk County Hospital Authority is in discussions with Floyd Healthcare Management and the Hospital Authority of Floyd County regarding an operating agreement over Polk Medical Center. The three parties have entered into a memorandum of understanding, providing a foundation before establishing a legally binding contract on a management deal. As part of the management proposal, Floyd Healthcare Management and the hospital authority would operate Polk and also pursue a certificate of need for a new 25-bed hospital in Polk County, among other stipulations.
6. Rhode Island's Westerly Hospital Explores Affiliation With Lawrence & Memorial
The Westerly (R.I.) Hospital and Lawrence & Memorial Hospital in New London, R.I., are researching a strategic alliance to align services. Leaders from the hospitals said the agreement is a non-binding letter of intent to explore an affiliation. Westerly, a 125-bed community hospital, has sought an affiliation with another hospital for approximately four years.
7. FTC Clears Pending 3-System Merger in Kentucky
A pending merger between three hospital systems in Kentucky to create a statewide Catholic health system was cleared to proceed by the Federal Trade Commission. The deal — between Louisville-based University Hospital, Jewish Hospital & St. Mary's HealthCare and Lexington-based St. Joseph Health System — still requires approvals by Gov. Steve Beshear and the Catholic Church.
8. Florida's Bay Medical Center May Go Private in JV With LHP, Sacred Heart Health
The CEO of Bay Medical Center in Panama City, Fla., recommended the public hospital become private and for-profit through a joint venture with LHP Hospital Group and Sacred Heart Health System in Pensacola, Fla. The joint venture could result in a 40-year lease and the structure would include an 80-20 split with LHP and SHHS. LHP would provide funding for the upfront lease payment for the fair market value of the hospital, estimated to be approximately $155 million. The payment would be used to pay off the debt of the hospital, which is about $115 million.
9. Arkansas' Baxter Regional in Talks With Financially Troubled Fulton County Hospital
Baxter Regional Medical Center in Mountain Home, Ark., is planning to offer a proposal to Fulton County Hospital in Salem, Ark., within the next couple of months. BRMC Vice President of Business Development Barney Larry said the hospitals are going through due diligence and anticipate "some type of potential proposal" in the next 60 days, according to the report. Fulton County Hospital has been experiencing financial instability, as it reportedly lost $1.3 million for the fiscal year ending June 30.
10. MedCath to Sell Hualapai Medical Center to Arizona's Kingman Regional
MedCath entered into a definitive agreement to sell its Hualapai Mountain Medical Center in Kingman, Ariz., to Kingman Regional Medical Center. Along with the announcement of the sale, Charlotte, N.C.-based MedCath also announced that the 70-bed Hualapai Mountain Medical Center will close on or before Sept. 30, subject to regulatory requirements. The transaction valued the assets of Hualapai Mountain Medical Center, along with 18.6 acres of adjacent undeveloped land, at $31 million plus retention of working capital.
11. UNC Healthcare Board Votes to Decline WakeMed's Offer to Buy Rex Healthcare
The board of directors for University of North Carolina Health Care, based in Chapel Hill, voted to decline WakeMed's proposal to acquire Rex Healthcare in Raleigh, N.C. — part of UNC Health Care. The leadership of Raleigh-based WakeMed was notified of the decision Aug. 26. The board concluded that WakeMed's proposal would harm the quality of North Carolina's patient care, increase cost to patients in the Wake County region and compromise the financial stability of UNC Health Care and the UNC School of Medicine. WakeMed President and CEO William K. Atkinson said the board's decision did not put an end to the company's pursuit.
12. Idaho's St. Benedicts Wants to Join St. Luke's Health System
St. Benedicts Family Medical Center in Jerome, Idaho, approached Boise, Idaho-based St. Luke's Health System to discuss merger opportunities. St. Benedicts is a critical-access hospital that is a subsidiary of Duluth, Minn.-based Essentia Community Hospitals and Clinics. Essentia, however, has no medical centers near St. Benedicts — something that kicked off the hospital's search for a locally-based healthcare system partner.
13. North Carolina's University Health to Lease Beaufort County Medical Center
Beaufort County (N.C.) commissioners approved the lease and potential sale of Beaufort County Medical Center to University Health Systems, based in Greenville, N.C. BCMC employees were told, via email, to expect the deal to go into effect by Sept. 1.
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1. Vanguard Finalizes JV With Valley Baptist Health in Texas
Nashville, Tenn.-based Vanguard Health Systems finalized the terms of a joint venture with Valley Baptist Health Systems, based in Harlingen, Texas. Under the deal, Vanguard acquired a 51 percent interest in the assets of VBHS, an 866-bed health system. Vanguard's cash investment in the joint venture was approximately $210 million.
2. CHS Sells Two Oklahoma Hospitals to Ardent Health
Franklin, Tenn.-based Community Health Systems sold two of its Oklahoma hospitals to Nashville, Tenn.-based Ardent Health Services. SouthCrest Hospital in Tulsa and Claremore (Okla.) Regional Hospital are now affiliates of Hillcrest HealthCare System, which is part of Ardent and based in Tulsa, Okla. The privately-held Ardent proposed the sale to expand its network of hospitals in Tulsa.
3. Missouri's Mercy to Acquire Logan Medical Center in Oklahoma
Chesterfield, Mo.-based Mercy struck an agreement with Logan Medical Center in Guthrie, Okla., to acquire it and its four clinics. Under the deal, which will be finalized Oct. 1, the 25-bed LMC will become Mercy Hospital Logan County. LMC's four clinics, which will also be owned by Mercy, are located in Guthrie, Crescent and Edmond.
4. New York's Peninsula Hospital May Be Purchased by Revival Home Health Care
Financially strapped Peninsula Hospital in Faraway Rock, N.Y., may be purchased by a home healthcare company. Peninsula Hospital, which reportedly owes nearly $13 million to vendors, $2 million to the nursing home and still more to the union, considered closing but now may be purchased by Revival Home Health Care, a for-profit healthcare company that primarily serves the Orthodox Jewish community.
5. Georgia's Polk Medical Center in Management Talks With Floyd Healthcare Management
The Cedartown-Polk County Hospital Authority is in discussions with Floyd Healthcare Management and the Hospital Authority of Floyd County regarding an operating agreement over Polk Medical Center. The three parties have entered into a memorandum of understanding, providing a foundation before establishing a legally binding contract on a management deal. As part of the management proposal, Floyd Healthcare Management and the hospital authority would operate Polk and also pursue a certificate of need for a new 25-bed hospital in Polk County, among other stipulations.
6. Rhode Island's Westerly Hospital Explores Affiliation With Lawrence & Memorial
The Westerly (R.I.) Hospital and Lawrence & Memorial Hospital in New London, R.I., are researching a strategic alliance to align services. Leaders from the hospitals said the agreement is a non-binding letter of intent to explore an affiliation. Westerly, a 125-bed community hospital, has sought an affiliation with another hospital for approximately four years.
7. FTC Clears Pending 3-System Merger in Kentucky
A pending merger between three hospital systems in Kentucky to create a statewide Catholic health system was cleared to proceed by the Federal Trade Commission. The deal — between Louisville-based University Hospital, Jewish Hospital & St. Mary's HealthCare and Lexington-based St. Joseph Health System — still requires approvals by Gov. Steve Beshear and the Catholic Church.
8. Florida's Bay Medical Center May Go Private in JV With LHP, Sacred Heart Health
The CEO of Bay Medical Center in Panama City, Fla., recommended the public hospital become private and for-profit through a joint venture with LHP Hospital Group and Sacred Heart Health System in Pensacola, Fla. The joint venture could result in a 40-year lease and the structure would include an 80-20 split with LHP and SHHS. LHP would provide funding for the upfront lease payment for the fair market value of the hospital, estimated to be approximately $155 million. The payment would be used to pay off the debt of the hospital, which is about $115 million.
9. Arkansas' Baxter Regional in Talks With Financially Troubled Fulton County Hospital
Baxter Regional Medical Center in Mountain Home, Ark., is planning to offer a proposal to Fulton County Hospital in Salem, Ark., within the next couple of months. BRMC Vice President of Business Development Barney Larry said the hospitals are going through due diligence and anticipate "some type of potential proposal" in the next 60 days, according to the report. Fulton County Hospital has been experiencing financial instability, as it reportedly lost $1.3 million for the fiscal year ending June 30.
10. MedCath to Sell Hualapai Medical Center to Arizona's Kingman Regional
MedCath entered into a definitive agreement to sell its Hualapai Mountain Medical Center in Kingman, Ariz., to Kingman Regional Medical Center. Along with the announcement of the sale, Charlotte, N.C.-based MedCath also announced that the 70-bed Hualapai Mountain Medical Center will close on or before Sept. 30, subject to regulatory requirements. The transaction valued the assets of Hualapai Mountain Medical Center, along with 18.6 acres of adjacent undeveloped land, at $31 million plus retention of working capital.
11. UNC Healthcare Board Votes to Decline WakeMed's Offer to Buy Rex Healthcare
The board of directors for University of North Carolina Health Care, based in Chapel Hill, voted to decline WakeMed's proposal to acquire Rex Healthcare in Raleigh, N.C. — part of UNC Health Care. The leadership of Raleigh-based WakeMed was notified of the decision Aug. 26. The board concluded that WakeMed's proposal would harm the quality of North Carolina's patient care, increase cost to patients in the Wake County region and compromise the financial stability of UNC Health Care and the UNC School of Medicine. WakeMed President and CEO William K. Atkinson said the board's decision did not put an end to the company's pursuit.
12. Idaho's St. Benedicts Wants to Join St. Luke's Health System
St. Benedicts Family Medical Center in Jerome, Idaho, approached Boise, Idaho-based St. Luke's Health System to discuss merger opportunities. St. Benedicts is a critical-access hospital that is a subsidiary of Duluth, Minn.-based Essentia Community Hospitals and Clinics. Essentia, however, has no medical centers near St. Benedicts — something that kicked off the hospital's search for a locally-based healthcare system partner.
13. North Carolina's University Health to Lease Beaufort County Medical Center
Beaufort County (N.C.) commissioners approved the lease and potential sale of Beaufort County Medical Center to University Health Systems, based in Greenville, N.C. BCMC employees were told, via email, to expect the deal to go into effect by Sept. 1.
Related Articles on Hospital Transactions:
6 Legal Topics to Consider Before a Hospital Completes a MergerTo Sell or Not to Sell: 3 Considerations for Leaders of Struggling Hospitals
FTC Investigates Fine Line Between Hospital Consolidation and Anti-Competition