KershawHealth has joined the Capella-MUSC Health Network


KershawHealth has joined the Capella-MUSC Health Network

Transaction Announcement
Ponder & Co. is pleased to announce that KershawHealth has become part of a new integrated healthcare delivery network operated jointly by Capella Healthcare and MUSC Health (Medical University of South Carolina). The transaction includes both a long-term lease and asset purchase agreement.

Founded in 1913, KershawHealth in Camden, South Carolina, is a multifaceted healthcare system that provides a range of diagnostic, medical, surgical, rehabilitation, and post-acute serves. KershawHealth includes a 121-bed Medical Center at Camden, 96-bed long-term care center, Outpatient Center and Urgent Care at Elgin, West Watertree Medical Complex, sleep diagnostic center, and home health and hospice. KershawHealth’s net revenue was $103.9 million in fiscal year 2014.

Capella Healthcare
Based in Franklin, Tennessee, Capella Healthcare is a private investor-owned organization with acute care and specialty hospitals in five states, including Carolina Pines Regional Medical Center in Hartsville, South Carolina, which is also a part of the Capella-MUSC Health Network.

MUSC Health
Founded in 1824 in Charleston, South Carolina, The Medical University of South Carolina is the oldest medical school in the South. MUSC educates and trains more than 3,000 students and residents, has nearly 13,000 employees, including approximately 1,500 faculty members. MUSC operates a 750-bed medical center, which includes a Children’s Hospital, the Ashley River Tower, Hollins Cancer Center and Level 1 Trauma Center.

Capella-MUSC Health
MUSC Health and Capella Healthcare established a clinical affiliation through the creation of the Capella-MUSC Health Network. This initiative combines MUSC Health’s academic expertise and commitment to education, research and patient care with Capella Healthcare’s expertise in operating hospitals to create a regionally-based healthcare delivery network.

Ponder’s Role
Ponder’s M&A Group advised KershawHealth on the transaction, managed the controlled auction process and negotiated the terms and conditions of the transaction, including the prepaid lease payment and asset purchase price. In addition, Capella-MUSC Health will make a substantial capital investment in KershawHealth.

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 $10 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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