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THE
WATERBURY HOSPITAL JOINS
LHP
HOSPITAL GROUP, INC. AND SAINT MARY’S HOSPITAL IN
JOINT VENTURE
Plans for a New
State-of-the-Art Hospital
(Waterbury, CT)
– Officials at Greater Waterbury Health Network, Inc.
today announced that they have signed a letter of intent
to merge with the previously announced joint venture
(JV) between LHP Hospital Group, Inc. (LHP) and Saint
Mary's Health System, Inc. (Saint Mary’s).
The combined joint venture will invest $400 million to
construct a new state-of-the-art medical center that
will replace both The Waterbury Hospital and Saint
Mary's Hospital. The combined revenue of both hospitals
will be over $520 million, making it one of the larger
hospitals in the State of Connecticut.
“This is a momentous
day for The Waterbury Hospital and the community we
serve,” said Carl Contadini, Chairman of The Waterbury
Hospital Board of Trustees. “After thoroughly analyzing
the health care needs of the greater Waterbury region,
we concluded that coming together with LHP and Saint
Mary’s to build a modern, state-of-the-art replacement
facility would bring the best in health care to patients
for generations to come. We will not only create new
construction jobs and help the local economy but we will
position the Greater Waterbury community to become the
regional leader for health care services in southern New
England. We could not be more pleased.”
LHP will own an 80%
interest in the combined joint venture, with GWHN and
Saint Mary’s each owning a 10% interest. Governance will
be shared among all three parties.
The combined joint
venture will commit to operate its health care
facilities in accordance with the “community benefit
standards” applicable to not-for-profit health care
systems, and will also operate in accordance with the
Ethical and Religious Directives for Catholic health
care services. There is a commitment to provide the
continuation of all health care services now available
in Greater Waterbury.
“We
are delighted that The
Waterbury Hospital
has chosen to
partner with LHP
and
Saint Mary's,” said Dan Moen, Chief Executive Officer of
LHP. “These two fine hospitals have provided quality
health care services to the greater Waterbury community
for more than 100 years, and LHP is honored to become a
part of that tradition and the exciting future that lies
ahead.”
“We
look forward to facilitating the construction of a new
modern, state-of-the-art hospital facility and building
a collaborative hospital environment that includes
physicians, caregivers and the community. I commend the
leaders of Waterbury and Saint Mary's for their vision
and courage in taking this significant step," added
Moen.
“The combined joint
venture is an extremely welcome development for the
medical staff of Waterbury Hospital and the patients we
serve,” said Carl B. Sherter, MD, Chief of The Waterbury
Hospital Medical Staff. “The construction of a modern,
high-tech replacement facility means that physicians
will be able to provide the most advanced, sophisticated
health care available for years to come.”
“The combined joint
venture between LHP/Saint Mary’s and The Waterbury
Hospital is the realization of a shared vision to create
a combined health care delivery system to serve the
Greater Waterbury community,” said Robert Mazaika, Chair
of the Saint Mary’s Joint Venture Task Force. “The
Waterbury Hospital and Saint Mary’s have collaborated on
a number of successful ventures over the years -
including the Harold Leever Regional Cancer Center and
the Heart Center of Greater Waterbury - that have
greatly benefited the community. Now we have the
opportunity to transform the delivery of local health
care as a combined system.”
Dr. Jerry Sugar, who
serves on the Saint Mary’s Joint Venture Task Force,
concurred. “This is a historic day for Greater Waterbury
and our two community hospitals. It will ensure that we
can deliver outstanding health care for generations. LHP
is an outstanding partner that truly values working with
doctors, and we are very lucky to have them. This is
also an excellent example of a private corporation and
not-for-profit hospitals coming together to create
something that would not have otherwise been
possible.”
The Waterbury’s
Hospital affiliation with the combined joint venture
will allow Waterbury Hospital to retire all of its
existing debt, provide security for their pensioner,
leverage economies of scale for access to capital and
purchasing power, and share clinical best practices,
providing more efficient delivery of services to
patients in our community.
The
next steps in the transaction will be to complete
customary due diligence, negotiate and finalize
a
definitive agreements, and obtain the necessary
approvals from various regulatory bodies.
About The Waterbury
Hospital
The Waterbury
Hospital is the largest private employer in the Greater
Waterbury region and serves a vital role in the economic
vitality of Western Connecticut. It is a private,
non-profit acute care teaching hospital licensed for 367
beds and affiliated with the Yale School of Medicine,
the University of Connecticut School of Medicine and
Connecticut Children’s Medical Center. Founded in 1890
as Waterbury’s first and Connecticut’s fourth hospital,
Waterbury Hospital is a full-service community
health-care institution with centers of excellence in
primary care, cardiac services, behavioral health and
orthopaedics. For more information, go to
www.waterburyhospital.org.
About Saint Mary’s
Health System
Saint Mary’s Health System is a leading regional
healthcare provider anchored by Saint Mary’s Hospital,
an acute care community teaching hospital that has
served Greater Waterbury for more than 100 years.
Licensed for 347 beds, Saint Mary’s is designated as a
Level II Trauma Center and Primary Stroke Center, offers
award-winning cardiac care and houses the region’s only
pediatric emergency care unit. As a leading provider of
surgical services in Greater Waterbury, Saint Mary’s was
the first to introduce the daVinci® Robotic Surgery
System. The health system’s satellites and affiliates
extend from Waterbury to Wolcott, Naugatuck, Southbury,
Prospect and Watertown. For more information, please go
to
www.stmh.org.
About LHP Hospital
Group, Inc.
LHP Hospital Group,
Inc. (LHP) is a privately held company established to
provide essential capital and expertise to community
hospitals and hospital systems. In cooperation with
local hospitals, LHP forms joint ventures to operate and
manage acute care facilities in small cities and select
urban markets throughout the United States.
Headquartered in Plano, Texas, LHP is owned by
affiliates of the private equity firm CCMP Capital
Advisors, LLC and the CPP Investment Board as well as
selected members of management and the board of
directors. For more information, please go to
www.lhphospitalgroup.com.
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