The Health Care Authority of the City of Anniston acquired Stringfellow Memorial Hospital, clinics and outpatient services
Transaction Announcement
Ponder & Co. (“Ponder”) is pleased to announce that The Health Care Authority of the City of Annistion (the “Authority”) has acquired Stringfellow Memorial Hospital (“SMH”) and its associated physician clinics and outpatient services from Community Health System, Inc. (“CHS”). The purchase price of $25 million includes The Authority’s assumption of the approximately $13 million facility lease. The Authority and SHM will work together to build a strong network of coordinated care for people in the region.
The Health Care Authority of the City of Anniston
The Authority oversees Northeast Alabama Regional Medical Center (“RMC”) with 323 inpatient beds at Regional Medical Center Anniston, 104 beds at RMC Jacksonville, and numerous outpatient facilities and
services, RMC is the provider of choice for over 13,500 inpatients, 89,000 outpatients, 1,850 newborn deliveries and 57,500 emergency room visits each year. Services include cardiovascular, oncology, orthopedic, and women’s/children’s, as well as most major specialties.
More than 1,800 employees and 200 physicians in a full range of specialties provide state-of-the-art healthcare with integrity, skill and compassion.
Stringfellow Memorial Hospital
Stringfellow Memorial Hospital in Anniston, Alabama is a 125-bed acute care hospital that was established in 1938. SMH provides comprehensive acute care inpatient services, offers 24-hour emergency care, general and specialized surgical services including laparoscopic and laser surgery, same day outpatient surgery and procedures, a full service rehabilitation department, pain clinic and diagnostic testing procedures including MRI and CT scanning.
Community Health Systems
Community Health Systems, Inc. is one of the largest publicly traded hospital companies in the United States and a leading operator of general acute care hospitals in communities across the country. CHS, through its subsidiaries, owns, leases or operates 157 affiliated hospitals in 22 states with an aggregate of approximately 26,000 licensed beds. CHS’ headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.”
Ponder’s Role
Ponder’s M&A Group served as RMC’s exclusive financial advisor in the acquisition and supported negotiation of the terms and conditions of the asset purchase agreement. In addition, Ponder assisted RMC in negotiations with banks to secure the financing to complete the transaction.
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 175 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, joint ventures and strategic alliances
- Mergers, acquisitions and divestitures
- Business valuations and fairness opinions
- Board and special committee assignments
- Real estate transaction services