- RegionalCare Hospital Parnters and Capella Healthcare annouce plans to merge the companies.
- The merger, which will undergo regulatory reviews, is expected to close during the second quarter of this year.
- The new company, which will include $1.7 billion in revenue, will be named RCCH Health Partners.
This is the latest in the continuing trend of merging hospitals and health systems.
The new company will have 18 hospital campuses in 12 states with more than 13,000 employees, and 2,000 affiliated physicians.
Capella currently operates 10 acute-care and specialty hospital facilities in five states: Arkansas, Oklahoma, Oregon, South Carolina and Washington. RegionalCare owns and operates eight non-urban hospitals located in seven states: Alabama, Arizona, Connecticut, Iowa, Montana, Ohio and Texas.
Marty Rash, current Board Chair and CEO of RegionalCare, will assume the role of Executive Board Chair for the combined company. Michael Wiechart, current Capella Board Vice-Chair and President and CEO of Capella, will lead the new organization as President and CEO. He will also join the combined company’s Board of Directors.
Capella was acquired by Medical Properties Trust just last year, Becker's Hospital Review reports. "MPT's net proceeds from the transaction are expected to be about $550 million, which will be used to reduce MPT's debt," Becker's notes.