IASIS Healthcare, based in Franklin, Tennessee, has announced it will acquire Brim Holdings, Inc., the operator of Wadley Regional Medical Center in Texarkana, TX, and Pikes Peak Regional Hospital in Woodland Park, CO, in a cash-for-stock deal valued at $95 million.
The combined revenue of the two hospitals is about $120 million. The deal is expected to be finalized by the end of 2010, subject to regulatory approval, IASIS said.
Altaris Capital Partners, the majority owner of Brim Holdings, will retain majority ownership of Brim's hospital management contract and health technology businesses through a spin-out transaction just before the closing of IASIS' acquisition of Brim Holdings.
"As we partner to provide high-quality healthcare to the communities served by each of these hospitals, we will support both locations with the same corporate expertise and resources that our other facilities enjoy, including our system-wide health information technology, quality initiatives, and access to capital," said Carl Whitmer, president of Franklin, TN-based IASIS.
Wadley Regional Medical Center, a general acute care hospital with 370 licensed beds, serves a population of about 275,000. Its services include internal medicine, family practice, cardiology, cardiovascular surgery, urology, neurology, pulmonology, orthopedics, gastroenterology, radiology, and women's services. The hospital has a 24-bed trauma-ready emergency department, eight general operating rooms, two open-heart operating rooms, two cardiac catheterization labs, a GI lab, and a 23-bed outpatient surgery pavilion.
"Through a commitment to excellence and strong relationships with our new physician partners, who will retain a 27% minority ownership in Wadley Regional Medical Center, we look forward to serving Texarkana and the surrounding communities by building on the momentum that has been established at the hospital," Whitmer said.
Pikes Peak Regional Hospital, a 15-bed critical access hospital, serves a Colorado community of 32,000, with services that include internal and emergency medicine, pulmonology, gastroenterology, cardiology, orthopedics, and neurology.
IASIS owns or leases 15 acute care hospital and one behavioral health hospital with a total of 2,886 beds, and annual net revenues of $2.5 billion. The hospitals are in six regions: Salt Lake City; Phoenix; Tampa-St. Petersburg; Texas; Las Vegas; and West Monroe, LA. IASIS owns and operates a Medicaid/Medicare managed health plan in Phoenix with more than 199,000 members.