Hospital Deals Are Abundant, And Not Always Welcomed

Source: Christopher Chung, Shasha Dai and Beina Xu, Wall Street Journal, March 29, 2011

RegionalCare Hospital Partners, which signed a letter of intent to buy a Rhode Island hospital in February, has made an unsolicited offer to run Cheyenne Regional Medical Center in Wyoming. RegionalCare, backed by Warburg Pincus LLC, is one of several private equity-owned chains seeking to expand….Saint Mary’s Hospital in Waterbury, Conn., spent about five years looking for ways to deal with its capital constraints, as well as the future pressures health-care reform could bring. After an arduous process, it finally found its answer in LHP Hospital Group, which provides capital and expertise to non-profit hospitals and is backed by CCMP Capital Advisors and Canada Pension Plan Investment Board….Cerberus Capital Management LP-owned Steward Health Care System LLC made a $1.1 billion offer to buy troubled Miami-area public hospital operator Jackson Health System, which provides indigent and charity care. Steward didn’t get a response to its non-binding letter of interest to the hospital’s oversight commission, the Public Health Trust.

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