‘No difference’ in business, River Region spokesman says|[02/06/07]
Published 12:00 am Tuesday, February 6, 2007
River Region Health System’s day-to-day operations will not see major changes resulting from Monday’s announcement of a merger by its parent company.
“People should see no difference in the way we do business here,” said Diane Gawronski, director of marketing and public relations for River Region, which has its operations here based at a 372-bed hospital on U.S. 61 North.
Plano, Texas-based Triad Hospitals Inc., will be merged with affiliates of CCMP Capital Advisors and GS Capital Partners in a move announced Monday.
The transaction is valued at about $6.4 billion, including $1.7 billion in Triad debt.
In a deal unanimously approved by Triad’s board of directors but still subject to closing conditions, including approval by Triad’s stockholders, all Triad stock would be sold for $50.25 per share in cash.
The buyout would make the company a private firm, with no publicly traded shares.
Triad had come under public criticism from investors in recent months, frustrated by the returns on their investments compared with that of other health-care companies.
The move was endorsed by officials of all three companies as being “in the best interest” of Triad and its stockholders, Triad CEO James Shelton said in a statement released Monday. Shelton is reported to own more than 400,000 shares, which would be worth more than $200 million at the buyout price.
Stephen Murray, managing director with CCMP Capital, said Triad is “an exceptional company, with a clear vision and a strong commitment to its patients, physicians and employees.”
Triad acquired the River Region properties from Nashville-based Quorum Inc., which had engineered deals pooling ownership of nearly all health-care businesses in the area.
Gawronski said late Monday employees who learned about the impending move were having information “disseminated to them” throughout the day.
“Triad is obviously very excited about this,” she said.
River Region Health System owns the hospital, two large multispeciality clinics – The Street Clinic and Vicksburg Clinic – in Vicksburg and several other health-care entities. Its hospital opened five years ago this month for $123 million. It merged the forme ParkView Regional Medical Center and Vicksburg Medical Center onto the new site.
The ParkView building on Grove Street has since been sold to investors who have announced no plans for the structure, all of it fenced off and vacant except a portion used by Marion Hill Chemical Dependency Center. Portions of the former Vicksburg Medical Center on North Frontage Road are leased to Promise Specialty Hospital, an extended care inpatient facility.
River Region had operated an acute rehabilitation unit and post-acute care services wings housed at the former Vicksburg Medical Center, but shut down those businesses in December.
Triad owns and manages 54 hospitals and 13 ambulatory surgery centers in 17 states with 9,855 licensed beds. The company also provides management, consulting and advisory services to more than 180 independent hospitals and health systems.