Nashville, Tenn.-based Vanguard Health Systems and Greater Waterbury (Conn.) Health Network have ratified a deal that will set up a joint venture between the two systems, according to a Republican American report.
Vanguard and GWHN, parent of Waterbury Hospital, announced their intent to join forces in November. Under the now-approved deal, Vanguard will create a limited liability company called VHS Waterbury Health System, which will own and operate Waterbury Hospital and the entire system as a for-profit entity, according to the report.
Vanguard will own 80 percent of the joint venture, and GWHN will own 20 percent. The deal, which still must clear state regulatory hurdles, will also include significant investments from Vanguard: $45 million to retire debts and fund GWHN's pension and $55 million for other capital and renovation projects, according to the report.
Before Vanguard stepped into the fold, Waterbury Hospital officials had a joint venture lined up with Catholic-based St. Mary's Hospital in Waterbury and LHP Hospital Group, based in Plano, Texas, but the deal fell through in October.
Vanguard and GWHN, parent of Waterbury Hospital, announced their intent to join forces in November. Under the now-approved deal, Vanguard will create a limited liability company called VHS Waterbury Health System, which will own and operate Waterbury Hospital and the entire system as a for-profit entity, according to the report.
Vanguard will own 80 percent of the joint venture, and GWHN will own 20 percent. The deal, which still must clear state regulatory hurdles, will also include significant investments from Vanguard: $45 million to retire debts and fund GWHN's pension and $55 million for other capital and renovation projects, according to the report.
Before Vanguard stepped into the fold, Waterbury Hospital officials had a joint venture lined up with Catholic-based St. Mary's Hospital in Waterbury and LHP Hospital Group, based in Plano, Texas, but the deal fell through in October.
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