Capella Healthcare has finalized the acquisition of Jacksonville Medical Center from Community Health Systems Inc., officials announced. “After a period of customary due diligence and regulatory approval processes, our team is elated to expand our company and our reach to patients across the nation in such a significant way,” said Daniel S. Slipkovich, Chief Executive Officer of Capella.
“During the past several weeks, Capella leadership has visited JMC a number of times in an effort to better understand the priorities of physicians and employees, as well as get to know the community. We are proud to partner with these individuals and look forward to working together to meet patient needs in Jacksonville.”
The acquisition of JMC is part of a nine-hospital deal between Capella and CHS, which entered into a definitive agreement in late November 2007. Combined, the nine new hospitals owned by Capella have 1,070 beds and employ nearly 4,000 people. They include:
• Willamette Valley Medical Center in McMinnville, Ore.;
• Saint Mary’s Regional Medical Center in Russellville, Ark.;
• National Park Medical Center in Hot Springs, Ark.;
• Mineral Area Regional Medical Center in Farmington, Mo.;
• White County Community Hospital in Sparta, Tenn.;
• Parkway Medical Center in Decatur;
• Woodland Medical Center in Cullman;
• Hartselle Medical Center in Hartselle; and
• Jacksonville Medical Center in Jacksonville.
Funding for the $315 million deal comes from a combination of equity capital from Capella’s partner GTCR Golder Rauner and debt financing led by Citigroup Global Markets Inc., Banc of America Securities LLC and GE Capital Markets.
“Capella has strong management experience, capital backing and a track record of providing individualized hospital attention and quality healthcare,” said Roger Collins, Chief Executive Officer of Jacksonville Medical Center.
Founded in 2005 by seasoned healthcare executives and former hospital administrators, Capella partners with communities to build strong local healthcare systems that are known for quality patient care. In addition to these nine facilities, Capella, which was founded in 2005, also owns and operates five thriving hospitals across the nation.
Capella operates fourteen hospitals in seven states. With the financial backing of GTCR Golder Rauner, the company has access to significant resources for the expansion and improvement of its hospitals and the services they provide. For more information, please visit www.capellahealth.com.
