Sponsored by VMG Health | gregk@vmghealth.com | 214.369.4888

Physician group in talks to purchase CHS-owned Lutheran Health Network

Fort Wayne, Ind.-based Lutheran Health Network could potentially get new ownership, reports The News-Sentinel.

Franklin, Tenn.-based Community Health Systems currently owns the health network. However, a local physician group has proposed acquiring Lutheran from CHS, according to the report.

The proposed ownership group includes 300 physicians and would receive backing from a private equity firm and possibly other investors, reports The News-Sentinel. At present, physicians have about 20 percent ownership in Lutheran.

The proposed acquisition comes as CHS works to improve its financial picture. The major for-profit hospital operator ended 2016 with a net loss of $1.7 billion, and reported a net loss of $199 million in the first quarter of this year. The company is currently on a divestiture spree as part of its financial turnaround plan.

Lutheran recently announced it will pursue a multiyear $500 million capital investment plan for nearly all of its facilities. Still, the physician group is reportedly worried about "a lack of corporate investment and the resulting impact on medical care," according to The News-Sentinel. The report notes it is unclear how or if a change in ownership would affect the $500 million capital investment plan.

Hospital spokesman Geoff Thomas did not comment on the issue, but instead referred Becker's Hospital Review to Tomi Galin, senior vice president of corporate communications and marketing at CHS.

In an emailed statement, Ms. Galin said CHS does not generally comment on potential acquisition or divestiture activity. However, "we remain very focused on the long-term success of Lutheran Health Network," she said. "We are very excited about the $500 million capital plan announced last week and the opportunity to make a transformative investment that will enhance patient care and expand health services in Fort Wayne, as well as bring jobs and other economic benefit to the community."

Lutheran is an eight-hospital health network that includes nearly 1,000 inpatient beds.

 

More articles on transactions and valuations:
HealthEast, Fairview Health Services receive final OK to merge
Hackensack Meridian, St. Joseph's Healthcare to partner on home health, hospice services
Yale New Haven, Day Kimball Healthcare partner to improve clinical care



© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months