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Equity firm submits winning (and only) bid for bankrupt Arizona hospital

Green Valley (Ariz.) Hospital CEO John Matuska said Monday he was not surprised the hospital attracted only one bidder, according to the Green Valley News.

Earlier this month, equity firm Lateral GV placed a $28.5 million stalking horse bid for Green Valley Hospital, which filed for Chapter 11 bankruptcy in April 2017. A stalking horse bid, which is an initial offer on a distressed company's assets from an interested buyer selected by the company, sets the minimum purchase price. Other potential buyers had until Jan. 22 to submit bids on Green Valley Hospital's assets.

Since Lateral GV placed the only bid, the hospital will begin the roughly 90-day process of transferring ownership to the equity firm. The deal is subject to customary regulatory approvals, and the hospital's licenses must be updated with the Arizona State Board of Pharmacy and other agencies, according to the report.

Mr. Matuska told the Green Valley News Lateral GV has been the Green Valley Hospital's lender for 10 months, and hospital officials have a good relationship with Lateral's management team. He said patient care will not be disrupted during the transfer of ownership, and none of the hospital's employees will lose their jobs.

More articles on healthcare industry transactions:

UNC board of governors member questions legality of Carolinas HealthCare deal: 5 things to know
Tenet exits Philadelphia with $170M sale of 2 hospitals
Brown University, Prospect Medical to make rival bid for Care New England

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