US-based primary care provider Rural Healthcare Group (RHG) has announced its plans to acquire Steward Medical Group and Steward Health Care Network (Stewardship).
RHG and Stewardship both are primary care provider organisations operating in multiple states.
Based in Dallas, Stewardship currently operates more than 30 hospitals across Arizona, Ohio, Pennsylvania, Arkansas, Florida, Louisiana, Texas, and Massachusetts.
Owned by Kinderhook Industries, a private investment firm that invests in mid-sized healthcare businesses, RHG provides high-quality primary care to people living in underserved areas.
The closing of the proposed transaction is subject to customary closing conditions, including bankruptcy court approval, and regulatory approvals.
RHG CEO Benson Sloan said: “We are excited to bring our mission and approach to the state of Massachusetts, and the other states where Stewardship operates and supports primary care clinics.
“In many ways, RHG has directly preserved and restored primary care in our Tennessee and North Carolina markets as both independent providers and health systems have sought us out to ensure long-term continuity of care in their communities.
“A thriving primary care infrastructure is critical to supporting local hospitals and specialists, as primary care providers are instrumental in ensuring patients are directed to the appropriate facilities at the right time.”
RHG intends to make significant investments in Stewardship’s infrastructure, allowing providers to continue treating patients in the existing clinics across the Stewardship network.
The investment is expected to continue providing healthcare services locally for patients, allowing them to continue to see providers who are familiar with their medical history.
In addition, RHG will separate Steward Medical Group and Steward Health Care Network from Steward’s hospital system, changing the clinics from health system-owned to independent.
Kirkland & Ellis served as legal counsel, Bass, Berry & Sims as regulatory counsel and Centerview Partners as investment banker to RHG, on this transaction.
Weil, Gotshal & Manges served as restructuring counsel, McDermott Will & Emery as regulatory counsel, Leerink Partners as healthcare investment banker, and AlixPartners as financial advisor to Stewardship.
Steward Health Care president Mark Rich said: “As part of the ongoing Chapter 11 proceedings, following a robust and active bidding process, Steward Health Care is pleased to have reached an agreement with Rural Healthcare Group.
“Kinderhook has over 20 years of experience investing in mid-sized healthcare businesses that serve the nations’ most vulnerable populations. Kinderhook’s investments are focused on protecting access to high-quality healthcare in communities that are truly underserved.
“Rural Healthcare Group is a well-respected group of healthcare professionals that specifically focuses on underserved and underinsured areas. We are confident that Stewardship Health will continue its stellar treatment of the patient population as a result of this transaction.”
