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Marion County Hospital District leased assets of Munroe Regional Health System to CHS

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Transaction Announcement
Ponder & Co. is pleased to announce that the Marion County Hospital District has leased the assets of Munroe Regional Health System (“MRHS”), located in Ocala, Florida, to Community Health Systems, Inc. The transaction also includes the creation of a new clinical affiliation between MRHS and UF Health Shands.

Marion County Hospital District
Marion County Hospital District (“MCHD”) is a special Florida tax district that is responsible for the direction and operation of MRHS.

Munroe Regional Health System
Prior to the transaction, MRHS was a Florida not-for-profit corporation empowered to operate MRHS d/b/a Munroe Regional Medical Center (“MRMC”) pursuant to a lease with MCHD, as well as other related outpatient facilities and ancillary services. MRMC has 421 licensed beds, 2,700 associates, 500 physicians and 1,600 volunteers. MRMC admits over 21,000 patients each year, treats over 106,000 in three emergency departments and sees another 54,000 for other outpatient needs.

Community Health Systems, Inc.
Community Health Systems, Inc. (“CHS”) is one of the largest publicly-traded hospital companies in the United States and a leading operator of general acute care hospitals in non-urban and mid-size markets throughout the country. The company now owns, leases or operates 207 hospitals in 29 states with an aggregate of approximately 35,000 licensed beds.

Ponder’s Role
Ponder’s M&A Group advised MCHD and MRHS on the long-term lease transaction, managed the controlled auction process and negotiated the terms and conditions of the transaction. In addition to the prepaid lease payment, CHS has committed to invest at least $150 million in capital improvements to enhance MRHS’ master facility plan, as well as an additional $75 million in capital expenditures for equipment, physician recruitment and new service development.

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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