LifePoint Hospitals has closed on its purchase of Sumner Regional Health Systems and renamed the network HighPoint Health System. The deal is valued at roughly $154 million including working capital, and LifePoint has pledged to invest $60 million in the three-market system over the next decade. The deal's close is the final note in SRHS' drawn-out bankruptcy proceeding that began in May. Background on the LifePoint acquisition, and the opposition that nearly thwarted it, can be found at this link and this one.
In commenting on the closing, William F. Carpenter III, LifePoint’s president and chief executive officer, said, “Sumner Regional Health Systems is an excellent addition to LifePoint’s family of hospitals. The employees and medical staff share LifePoint’s mission of making communities healthier. We look forward to working with them to enhance the scope of services available and to find new and even better ways to provide quality healthcare close to home for the residents of these communities.”LifePoint's shares (Ticker: LPNT) closed at $30.40 on Tuesday.
Sep 1, 2010 8:33 AM
U.S. Bankruptcy Court Judge Kevin Gross last week approved the liquidation plan for pay creditors of Spheris Inc. from the sale of the Franklin medical transcription company's assets, Bloomberg reports. From the story:
Under Spheris’s plan, a trust is created to distribute the proceeds and any other remaining assets. Subordinated noteholders, owed about $133.6 million, and other unsecured creditors will share the trust. They are estimated to recover about 23 cents on the dollar. Lenders with claims of about $75.6 million were already paid in full from the sale, court papers show.Spheris is now officially known as SP Wind Down Inc., following the $116 million sale of its assets to New Jersey competitor MedQuist Inc.
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U.S. Bankruptcy Court Judge Marian Harrison yesterday issued the order approving the settlement agreement that will allow LifePoint Hospitals' purchase of Sumner Regional Health Systems to proceed. LifePoint had agreed to buy the bankrupt health system in May, but objections from Sumner County stalled the deal for several months. Then, in late July, the parties reached a settlement agreement — which includes giving $15 million of the roughly $154 million purchase amount to the county — to allow the transaction to proceed toward an August 31 close. Background on the deal is here and here.
Aug 18, 2010 10:23 AM
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Aug 11, 2010 3:04 PM
A U.S. Bankruptcy Court judge today approved Community Health Systems' $120 million purchase of Forum Health. The three-hospital Youngstown, Ohio, health system released the following statement on today's news:
We are pleased that Judge Woods has approved the sale of Forum Health's assets to Community Health Systems. This is a very positive step forward and represents the accomplishment of our objective of providing a more secure and stable future for Forum Health and continued access to high-quality health care services for residents of the Mahoning Valley. Closing of the transaction is expected to occur promptly upon obtaining the remaining regulatory approvals.CHS outbid Nashville competitor Ardent Health Services in an auction for Forum, which had filed for bankruptcy last year. Ardent originally secured a deal to buy the health system for $69.8 million and had received support from the health system's labor groups, as well as required approval from the Ohio Attorney General. CHS must still get the AG's nod in Ohio before the deal can close. In a statement Tuesday afternoon, CHS said it is "prepared to make a substantial, long-term commitment to invest in the hospitals, the people who work for them, and the communities that rely on them. We are very optimistic about opportunities to strengthen and grow Forum Health over time and to further advance the health services it provides for residents of the Mahoning Valley."
Aug 10, 2010 2:11 PM
$19M fraud took retirement savings from thousands of victims; death follows complaints by prisoner of poor health care
Aug 10, 2010 11:49 AM