CharterCare, a nonprofit that operates Roger Williams Medical Center in Providence and Our Lady of Fatima Hospital in North Providence, and the private, for-profit PMH signed a letter of intent in March. Under the joint venture, PMH will manage the hospitals and receive equal representation on the CharterCare’s boards.
PMH also will invest $95 million into CharterCare over the next four years. Once the transaction receives regulatory approval, PMH will hand over $45 million for debt reduction and short-term working capital. The remaining $50 million will be allocated over the next four years to help with physician recruiting, facility improvements and technology upgrades.
The deal now moves to the Rhode Island Department of Health and Attorney General Peter Kilmartin for approval. Religious officials also must OK the deal.
PMH, supported by Los Angeles-based private equity firm Leonard Green & Partners, currently manages two health systems: Alta Hospitals System, a five-hospital system based in Los Angeles, and Nix Hospitals System, a one-hospital system based in San Antonio. In June, the company signed a nonbinding letter of intent to acquire two-hospital Raritan Bay Medical Center, based in Perth Amboy, N.J.
More Articles on Hospital Transactions:
Report: St. Vincent Health System May Acquire Mercy Hot Springs
House Committee Holds Hearing on Healthcare Consolidation
Houston Methodist to Acquire Majority Interest in 2 Christus Hospitals
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
