San Francisco-based Dignity Health signed a definitive agreement to combine its subsidiary occupational medicine and urgent care services provider with Mechanicsburg, Pa.-based Select Medical's service provider Oct. 23.
Under the agreement, Addison, Texas-based Concentra — a division of Select Medical — will acquire all of the issued and outstanding shares of Dignity Health's Valencia, Calif.-based U.S. HealthWorks Medical Group.
Once the transaction is finalized, Dignity Health will own a 20 percent equity interest in the combined entity, equaling approximately $238 million, and will receive the remainder of the purchase price in cash. Select Medical will maintain a majority voting interest in the combined entity.
Officials expect to close the transaction during the first quarter of 2018, subject to customary closing conditions.