LifePoint Hospitals acquire Sumner Regional Health Systems

September 1st, 2010 - this article is free to republish with open public license

Sumner Regional Health Systems or SRHS, would release all of it’s assets to LifePoint in under the deal brokered for a total of $156. 8 million. The arrangement came after the chapter 11 filing by SRHS and subsequent sale arranged by Proskauer’s Bankruptcy & Restructuring team. LifePoint has been consistently expanding their operations, covering a large portion of the united states. This acquisition was an opportunity to provide service to more communities in Tennessee.

The medical industry parallels other sectors in a cycle of merger and consolidation, spurred by the flow of liquidity. If an established and valued business feels the effects of larger income than expenditures, another similar company can lend assistance so that patents can continue to receive care.

Jeff Marwil of Proskauer’s comments on the sale

“We are extremely gratified that we were entrusted with this critical engagement, resulting in our client’s successful sale to LifePoint, said Monte Dube, Partner in Proskauer’s Health Care Department. This transaction will sustain the vitality and enhanced quality and access of patient care for the communities historically served by SRHS, and into the future under LifePoint’s stewardship. ”

About SRHS

website: http://www. sumner.org

SRHS has operated as a tax-exempt, not-for-profit health care system serving an 11-county region in north-central Tennessee. Headquartered in Gallatin, Tennessee, SRHS was the predominant health care provider in the region, providing a wide array of general and specialized health care services in both inpatient and outpatient settings through its four community-based acute care hospitals Sumner Regional Medical Center, Trousdale Medical Center, Riverview Regional Medical Center North, and Riverview Regional Medical Center South and multiple health care affiliates.

Quote from SRHS ’s Information Page

“Sumner Regional Health Systems (SRHS) is a three-hospital healthcare organization serving eleven counties in the northern middle Tennessee region. The system provides a wide spectrum of general and specialized healthcare services through its three community hospitals: Riverview Regional Medical Center (RRMC), Trousdale Medical Center (TMC) and its flagship hospital, Sumner Regional Medical Center (SRMC).

Since opening in 1959, SRMC has grown to be a leading provider of healthcare services in Sumner and surrounding counties. When SRMC first opened its doors, there were 50 employees and seven physicians. To give SRMC a competitive edge and create an infrastructure that would better serve its rural service area, a private, not-for-profit 501(c)(3) health system was created in 1994.

Today, SRHS is a health system of 1,440 full and part-time associates, more than, and 250 volunteers, all of whom are dedicated to the systems mission to meet the healthcare needs and expectations of their communities. ”

About LifePoint

website: www. lifepointhospitals.com

LifePoint is a leading hospital company focused on providing quality health care services in non-urban communities. Through its subsidiaries, LifePoint operates 48 hospital campuses in 17 states.

Quote from LifePoint’s Information Page

“LifePoint Hospitals is All About People. People helping family and friends. People caring for neighbors. People serving the healthcare needs of their hometown and region.

We want every LifePoint hospital to be a place where:

  • Patients choose to come for healthcare
  • Physicians want to practice and
  • Employees want to work

Throughout our history, our sole mission has been to develop strong community-based hospitals in non-urban markets. In almost every case, LifePoint hospitals located throughout the United States serve as the only acute-care facilities in their communities.

We believe these hospitals, strengthened by the resources we provide, can become regional healthcare centers and deliver a high level of care unique to America’s hometown hospitals. ”

About Proskauer

website: www. proskauer.com

Founded in 1875, Proskauer is a global law firm widely recognized for its leadership in a variety of legal services provided to clients worldwide from offices in Boca Raton, Boston, Chicago, Hong Kong, London, Los Angeles, New Orleans, New York, Newark, Paris and Washington, DC.

In February 2008, Proskauer Rose announced double-digit growth in both profits and turnover for 2007, with revenue at the New York law firm up by almost a fifth to $627. 8 million. The 2007 revenue makes it the fortieth largest firm in the United States by revenue. In 2007, Proskauer’s profits per equity partner (PEP) increased 19. 2% from 2006’s $1. 3 million to $1. 55 million in 2007. These figures place Proskauer Rose as one of the fastest growing law firms in the United States during 2007.

Date September 1, 2010