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Morristown-Hamblen Healthcare System Merged with Convenant Health

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Transaction Announcement
Ponder & Co. is pleased to announce that Morristown-Hamblen Healthcare System has merged with Covenant Health. Morristown-Hamblen Hospital became the eighth hospital in Covenant Health’s network, significantly enhancing Covenant’s reach into the Lakeway Area of East Tennessee.

Morristown-Hamblen Healthcare System
Morristown-Hamblen Healthcare System (“MHHS”), based in Morristown, Tennessee, is a not-for-profit community hospital serving an eight-county region known as the Lakeway Area. The 167-bed facility has six Centers of Excellence, including: Heart, Lung and Vascular Center, Women’s Center, Morristown Regional Cancer Center, Surgery Center, Joint and Spine Center, and Emergency and Critical Care Services. MHHS’ mission is to provide the best healthcare to the region with integrity, compassion and excellence.

Covenant Health
Headquartered in Knoxville, Tennessee, Covenant Health provides comprehensive healthcare services throughout East Tennessee. Covenant Health includes six acute care hospitals in East Tennessee. It also includes Peninsula Hospital, a psychiatric hospital in East Tennessee’s Blount County, and numerous outpatient services and clinics. Covenant Health is a community-owned organization governed by a voluntary board of directors composed of community leaders and physicians. The system has more than 10,000 employees, affiliated physicians and volunteers.

Ponder’s Role
Ponder’s M&A Group advised MHHS on the merger and negotiated the terms and conditions of the transaction. As part of the transaction, MHHS received capital and other commitments totaling approximately $100 million over seven years and continued representation through a local board, as well as representation on the Covenant Health board.

Ponder & Co.
Ponder & Co. provides M&A and capital advisory services to a client base of over 150 non-profit hospitals and healthcare systems. Ponder’s M&A experience includes more than 100 M&A engagements involving general acute and specialty hospitals, ambulatory surgery centers and behavioral health facilities. Completed transactions have had asset values ranging from $4 million to over $1.5 billion.

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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