PMC and County Announce Potential Capital Partners for Hospital
The process to partner with a healthcare system would include countyvoters' approval of the transfer of PMC's assets to the local not-for-profitand simultaneous formation of a Community Benefit Organization (CBO) jointventure between that not-for-profit and the selected capital partner. Thejoint venture will be required to operate in a manner that adheres to strictIRS rules requiring local control over community benefit standards affectingpatients and the entire community.
Legacy Hospital Partners is a privately held company recently formed by anexperienced healthcare management team to own, operate, and manage acute carehospitals in partnership with local not-for-profit entities throughout theUnited States. Headquartered in Plano, Texas, Legacy has financial backingfrom affiliates of private equity firm CCMP Capital Advisors, LLC and theCanada Pension Plan Investment Board as well as members of management.Legacy's senior executives, most of whom have worked together in otherhealthcare systems for more than 10 years, are known for pioneering thedevelopment of some of the most successful models for community benefitpartnerships with not-for-profit hospitals.
LifePoint is a publicly traded company listed on the NASDAQ under thesymbol "LPNT," and based in Brentwood, Tennessee. Established in May 1999,LifePoint is one of the nation's largest hospital companies focused onproviding healthcare services in non-urban communities - the most rapidlygrowing sector of the national healthcare industry. Of the company's 48hospitals in 17 states, 44 are in communities where the LifePoint hospital isthe sole community hospital provider. An important part of LifePoint'sstrategy is developing community hospitals into true regional referral centersthat can support smaller nearby hospitals by offering their patientsconvenient access to specialty services.
"Our goal is to achieve the best possible healthcare for our community,"said Larry Ghan, Chair of the Bannock County Commission. "That includesworking with a capital partner that will commit to providing the financialsupport and other necessary resources to build a full-service, technologicallyadvanced regional medical center that will meet this community's present andfuture needs. What makes our plan the right one is that we do all this whileenabling the Hospital to continue its community mission, while retainingsignificant local control. The vehicle for this local control," Ghanexplained, "is the shared ownership and governance structure with the localnot-for-profit we are currently forming in cooperation with the current PMCGoverning Board. There are still many issues to be addressed; however, we arepleased that we have made enough progress to enter the next stage of thisvital community process."
On the heels of the 2006 Idaho Supreme Court Frazier Decision, and afterextensive study and review of the various options available, the hospital'sleadership and the County Commission, with assistance from outsideconsultants, determined PMC's best option to acquire the financing needed tocomplete the construction of its replacement facility would be to seek aqualified financial partner. The group contacted more than 25 local andnational healthcare systems, a majority of which
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