LHP Hospital Group said Tuesday that it’s merging its previously announced joint venture between LHP Hospital Group and Saint Mary’s Health System with the Greater Waterbury Health Network, which includes The Waterbury Hospital. LHP is backed by CCMP. LHP will own an 80% interest in the JV, with GWHN and Saint Mary’s each owning a 10% interest.
Officials at LHP Hospital Group, Inc. (LHP) today announced that they have signed a letter of intent to merge the previously announced joint venture (JV) between LHP Hospital Group, Inc. (LHP) and Saint Mary’s Health System, Inc. (Saint Mary’s) with the Greater Waterbury Health Network, Inc. (GWHN) which includes The Waterbury Hospital.
The combined joint venture will invest $400 million to construct a new state-of-the-art medical center that will replace both The Waterbury Hospital and Saint Mary’s Hospital. The combined revenue of both hospitals will be over $520 million, making it one of the larger hospitals in the State of Connecticut.
“This is a momentous day for The Waterbury Hospital and the community we serve,” said Carl Contadini, Chairman of The Waterbury Hospital Board of Trustees. “After thoroughly analyzing the health care needs of the Greater Waterbury region, we concluded that coming together with LHP and Saint Mary’s to build a modern, state-of-the-art replacement facility would bring the best in health care to patients for generations to come. We will not only create new construction jobs and help the local economy but we will position the Greater Waterbury community to become the regional leader for health care services in southern New England. We could not be more pleased.”
LHP will own an 80% interest in the JV, with GWHN and Saint Mary’s each owning a 10% interest. Governance will be shared between all three parties.
The combined joint venture will commit to operate its health care facilities in accordance with the “community benefit standards” applicable to not-for-profit health care systems, and will also operate in accordance with the Ethical and Religious Directives for Catholic health care services. Day to day management will be provided by an affiliate of LHP.
“We are delighted that The Waterbury Hospital has chosen to partner with LHP and Saint Mary’s,” said Dan Moen, Chief Executive Officer of LHP. “These two fine hospitals have provided quality health care services to the Greater Waterbury region for more than 100 years, and LHP is honored to become a part of that tradition and the exciting future that lies ahead.”
“We look forward to facilitating the construction of a new modern, state-of-the-art hospital facility and building a collaborative hospital environment that includes physicians, caregivers and the community. I commend the leaders of Waterbury and Saint Mary’s for their vision and courage in taking this significant step,” added Moen.
“The combined joint venture is an extremely welcome development for the medical staff of Waterbury Hospital and the patients we serve,” said Carl B. Sherter, MD, Chief of The Waterbury Hospital Medical Staff. “The construction of a modern, high-tech replacement facility means that physicians will be able to provide the most advanced, sophisticated health care available for years to come.”
“The combined joint venture between LHP/Saint Mary’s and The Waterbury Hospital is the realization of a shared vision to create a combined health care delivery system to serve the Greater Waterbury community,” said Robert Mazaika, Chair of the Saint Mary’s Joint Venture Task Force.
“The Waterbury Hospital and Saint Mary’s have collaborated on a number of successful ventures over the years — including the Harold Leever Regional Cancer Center and the Heart Center of Greater Waterbury — that have greatly benefited the community. Now we have the opportunity to transform the delivery of local health care as a combined system.”
Dr. Jerry Sugar, who serves on the Saint Mary’s Joint Venture Task Force concurred. “This is a historic day for Greater Waterbury and our two community hospitals. It will ensure that we can deliver outstanding health care for generations. LHP is an outstanding partner that truly values working with doctors, and we are very lucky to have them. This is also an excellent example of a private corporation and not-for-profit hospitals coming together to create something that would not have otherwise been possible.”
The next steps in the transaction will be to complete customary due diligence, negotiate and finalize the definitive agreements, and obtain the necessary approvals from various regulatory bodies.
About Waterbury Hospital
Waterbury Hospital is the largest private employer in the Greater Waterbury region, and serves a vital role in the economic vitality of Western Connecticut. It is a private, non-profit acute care teaching hospital licensed for 367 beds and affiliated with the Yale School of Medicine, the University of Connecticut School of Medicine and Connecticut Children’s Medical Center. Founded in 1890 as Waterbury’s first and Connecticut’s fourth hospital, Waterbury Hospital is a full-service community health-care institution with centers of excellence in primary care, cardiac services, behavioral health and orthopaedics. For more information, go to www.waterburyhospital.org.
About Saint Mary’s Health System
Saint Mary’s Health System is a leading regional healthcare provider anchored by Saint Mary’s Hospital, an acute care community teaching hospital that has served Greater Waterbury for more than 100 years. Licensed for 347 beds, Saint Mary’s is designated as a Level II Trauma Center and Primary Stroke Center, offers award-winning cardiac care and houses the region’s only pediatric emergency care unit. As the leading provider of surgical services in Greater Waterbury, Saint Mary’s was the first to introduce the daVinci® Robotic Surgery System. The health system’s satellites and affiliates extend from Waterbury to Wolcott, Naugatuck, Southbury, Prospect and Watertown. For more information, please go to www.stmh.org.
About LHP Hospital Group, Inc.
LHP Hospital Group, Inc. (LHP) is a privately held company established to provide essential capital and expertise to community hospitals and hospital systems. In cooperation with local hospitals, LHP forms joint ventures to operate and manage acute care facilities in small cities and select urban markets throughout the United States. Headquartered in Plano, Texas, LHP is owned by affiliates of the private equity firm CCMP Capital Advisors, LLC and the CPP Investment Board as well as selected members of management and the board of directors. For more information, please go to www.lhphospitalgroup.com.