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Cleveland Clinic Minority Owner in Akron General Health System, Exclusive Partner in Summit County, Ohio

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Transaction Announcement
Ponder & Co. is pleased to announce that Cleveland Clinic has become a minority owner in Akron General Health System (“AGHS”), making AGHS its affiliate and its exclusive health system partner in Summit County, Ohio. This transaction combines the clinical expertise and resources of Cleveland Clinic and AGHS to strengthen and improve access to high-quality, affordable healthcare services for patients in the region.

Akron General Health System
AGHS is a not-for-profit health care organization that includes Akron General Medical Center (“AGMC”), a 537 bed acute care teaching hospital; Lodi Community Hospital, a 25 bed acute and skilled facility; Edwin Shaw Rehabilitation facility; Partners Physician Group; AGHS’ Community Health Ventures and affiliates (includes home care, hospice, durable medical equipment and infusion therapy services); Akron General Partners and Akron General Foundation. In addition to many outpatient locations, AGMC also operates three Health and Wellness centers which include free-standing emergency departments. AGHS’ net revenue was $583.1 million in fiscal year 2013.

Cleveland Clinic
Cleveland Clinic is a not-for-profit multispecialty academic medical center based in Cleveland, Ohio. It has more than 3,000 full-time salaried physicians and researchers and 11,000 nurses representing 120 medical specialties and subspecialties. The Cleveland Clinic health system includes a main campus near downtown Cleveland, eight community hospitals, and more than 75 Northern Ohio outpatient locations. In 2012, there were 5.1 million outpatient visits throughout the Cleveland Clinic health system and 157,000 hospital admissions. Patients came for treatment from every state and from more than 130 countries.

Ponder’s Role
Ponder’s M&A Group advised AGHS on the transaction, managed the controlled auction process and supported negotiation of the terms and conditions of the transaction. As part of the affiliation agreement, Cleveland Clinic will make a substantial capital investment in AGHS. In addition, each of the organizations will have representation on the other’s Board and local governance remains in place.

Ponder & Co.
Ponder & Co. provides M&A and capital advisory services to more than 150 non-profit hospital and healthcare system clients. Ponder has completed more than 100 M&A engagements involving acute and specialty hospitals, senior health and housing facilities, long-term acute care facilities, ambulatory surgery centers and behavioral health facilities. Transactions have ranged from $4 million to $1.5 billion in value.

Ponder’s M&A services include:

  • Strategic option assessments
  • Partnerships and joint ventures
  • Mergers, acquisitions and divestitures
  • Business valuations and fairness opinions
  • Board and special committee assignments
  • Real estate transaction services

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