NASHVILLE, Tenn. and
PLANO, Texas, Oct. 5, 2016 /PRNewswire/ -- Ardent Health
Services ("Ardent" or "the Company") and LHP Hospital Group, Inc.
("LHP") today announced they have entered into a definitive merger
agreement under which the two companies will merge their
operations. The transaction will create the second largest private,
for-profit hospital operator in the
United States with 19 hospitals across six states and
$3 billion in revenues. Terms of the
transaction were not disclosed.
Ardent currently operates three health systems with 14 hospitals
and employs multi-specialty physicians in nearly 100 clinic
locations across New Mexico,
Oklahoma and Texas. LHP operates five acute-care hospitals
in Florida, Idaho, New
Jersey and Texas with its
joint venture partners, which include leading not-for-profit and
academic medical centers. LHP's hospitals include:
- Bay Medical Center in Panama City,
Florida – a joint venture with Sacred Heart Health
System
- HUMC Mountainside in Montclair, New
Jersey – a joint venture with HackensackUMC, a subsidiary of
Hackensack Meridian
- HUMC at Pascack Valley in Westwood,
New Jersey – a joint venture with HackensackUMC, a
subsidiary of Hackensack Meridian
- Portneuf Medical Center in Pocatello,
Idaho – a joint venture with Portneuf Health Trust,
Inc.
- Seton Medical Center in Harker
Heights, Texas – a joint venture with Seton Healthcare
Family
Under the terms of the agreement, Ardent will assume LHP's
management and operational responsibilities within each joint
venture partnership. The transaction is not expected to impact the
day-to-day operations of the affiliated hospitals.
Through this transaction, Ardent will operate 3,200 patient beds
across six states with approximately 18,000 employees, including
more than 475 employed physicians. The transaction will diversify
and grow the Company's quality portfolio of hospitals through
partnerships with top-tier, not-for-profit and academic health
systems.
"This is a transformative growth opportunity for Ardent that
will provide significant benefits to each of the communities our
companies serve," said David T.
Vandewater, president and CEO of Ardent Health Services. "In
addition to combining two organizations with similar operating
philosophies and a strong focus on local partnerships and
collaboration, this transaction dramatically enhances our scale,
diversity and geographic reach – creating new synergies that better
position us for future growth and investment in new and existing
markets. We look forward to working closely with the outstanding
employees, physicians, nurses and partners associated with LHP to
advance our shared goals."
Once complete, the Ardent management team will continue to lead
the Company with the assistance of key LHP executives. Ardent will
remain headquartered in Nashville.
"LHP's decisions have always been driven by our commitment to
advance our mission of restoring and enhancing the health of our
patients," said John Holland, president and CEO of LHP
Hospital Group. "We recognized we had a unique opportunity to
accelerate that mission by joining forces with Ardent and tapping
into their exceptional resources, skills, track record and
reach."
The transaction is expected to close in early 2017, pending
customary regulatory reviews and approvals. Ardent expects to fund
the transaction primarily through secured debt financing, as well
as through equity capital provided principally by its majority
owner, an affiliate of Equity Group Investments (EGI). Ventas, Inc.
(NYSE: VTR) has provided a commitment for secured debt financing
for the transaction.
Citigroup acted as exclusive financial advisor to LHP in this
transaction.
About Ardent Health Services
Ardent Health Services (Ardent) invests in people, technology,
facilities and communities, producing high-quality care and
extraordinary results. Based in Nashville, Tennessee, Ardent's subsidiaries own and
operate acute-care health systems in three service areas in
Texas, Oklahoma and New Mexico that include 14
hospitals and more than 13,000 employees including 375 employed
physicians in nearly 100 clinic locations. Ardent facilities exceed
national averages in Overall Hospital Quality Star Rating as ranked
by the Centers for Medicare & Medicaid Services; 91.6 percent
of its hospitals received a three-star rating or above in
comparison with 76.6 percent of all hospitals ranked. Five of the
company's 14 hospitals were recognized by Modern Healthcare as
"Best Places to Work" in 2016 – more than any other system in the
country.
Ardent operations are owned by an affiliate of Equity Group
Investments (EGI), a Chicago-based
private investment firm; Ventas, Inc., a leading real estate
investment trust; and members of Ardent's executive management
team. For more information, visit www.ardenthealth.com.
About LHP Hospital Group, Inc.
LHP Hospital Group, Inc. (LHP) is a privately held company
established to provide essential capital and expertise to
not-for-profit hospitals and hospital systems. In cooperation with
local hospitals, LHP forms joint ventures to acquire, own, operate
and manage acute care facilities in small cities and select urban
markets throughout the United
States. Headquartered in Plano,
Texas, LHP is owned by affiliates of the private equity firm
CCMP Capital Advisors, LLC and the CPP Investment Board as well as
certain members of management and the board of directors. For
more information, visit www.lhphospitalgroup.com.
Contact:
|
|
Tyra
Palmer
|
Wendy
Tischler
|
Ardent Health
Services
|
LHP Hospital Group,
Inc.
|
(615)
296-3146
|
(214)
763-6116
|
tpalmer@ardenthealth.com
|
lhp@perryst.com
|
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SOURCE Ardent Health Services