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.
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SOURCE Ardent Health Services