Boston-based Steward Healthcare has offered $1.1 billion for Miami's Jackson Health System, according to a Miami Herald report.
Steward CEO Ralph de la Torre sent a letter of intent to Chairman John Copeland of the Public Health Trust, Jackson's governing body. The letter offered to buy Jackson's six hospitals for $600 million in capital in addition to $500 million for debt. One of Jackson's hospitals, Jackson Memorial teaching hospital, has accrued $350 in debt in the past two years, and Jackson's executives said the health system's money might last only to July.
Steward requested 60 days of exclusivity to study Jackson's books before making a firm proposal, after which the Trust would have 30 days to consider other offers.
Despite its bid to buy Jackson, Steward's letter also said Jackson would be a "long term strategic partner" and the Trust would continue to play a role in the hospitals.
Trust officials want to include county leaders, the University of Miami and Florida International University in their consideration of Steward's bid.
Steward was recently created to oversee six Caritas hospitals in Massachusetts that were bought by the private equity firm Cerberus, which has also agreed to buy Merrimack Valley Hospital in Haverhill, Mass., and Nashoba Valley Medical Center in Ayer, Mass. The proposal to Jackson is Steward's first effort to acquire health systems outside the state.
Read the Miami Herald report on Steward Healthcare and Jackson Health System.
Read more coverage on hospital transactions:
- St. Louis' Ascension Health and Oak Hill Capital Partners to "Save" Catholic Hospitals, Health Systems
- Houston's University General To Become Public In "Business Combination" With Freight Company
- North Carolina's New Hanover Regional Medical Center Considers Partnership With Carolinas HealthCare System
Steward CEO Ralph de la Torre sent a letter of intent to Chairman John Copeland of the Public Health Trust, Jackson's governing body. The letter offered to buy Jackson's six hospitals for $600 million in capital in addition to $500 million for debt. One of Jackson's hospitals, Jackson Memorial teaching hospital, has accrued $350 in debt in the past two years, and Jackson's executives said the health system's money might last only to July.
Steward requested 60 days of exclusivity to study Jackson's books before making a firm proposal, after which the Trust would have 30 days to consider other offers.
Despite its bid to buy Jackson, Steward's letter also said Jackson would be a "long term strategic partner" and the Trust would continue to play a role in the hospitals.
Trust officials want to include county leaders, the University of Miami and Florida International University in their consideration of Steward's bid.
Steward was recently created to oversee six Caritas hospitals in Massachusetts that were bought by the private equity firm Cerberus, which has also agreed to buy Merrimack Valley Hospital in Haverhill, Mass., and Nashoba Valley Medical Center in Ayer, Mass. The proposal to Jackson is Steward's first effort to acquire health systems outside the state.
Read the Miami Herald report on Steward Healthcare and Jackson Health System.
Read more coverage on hospital transactions:
- St. Louis' Ascension Health and Oak Hill Capital Partners to "Save" Catholic Hospitals, Health Systems
- Houston's University General To Become Public In "Business Combination" With Freight Company
- North Carolina's New Hanover Regional Medical Center Considers Partnership With Carolinas HealthCare System