Buyer: Steward Health Care System
Seller: Iasis Healthcare
Keywords: Healthcare Facilities - Hospital
Steward Health Care System completes $2B acquisition of IASIS Healthcare
Steward Health Care System (Boston, MA) completed its nearly $2 billion acquisition of IASIS Healthcare (Franklin, TN) on September 29. With 36 Hospitals Nationally, Steward Becomes the Largest Private Hospital Operator in the U.S.
Steward Health Care System LLC (Steward) has completed a previously announced agreement to merge with IASIS Healthcare LLC (IASIS). As the sole operator of the newly merged company, Steward will oversee 36 individual hospitals across ten states, managed care operations in Arizona, Utah, and Massachusetts, and has projected revenues of almost $8 billion in 2018, the first full-year of the consolidated company. In addition, Steward becomes the largest private hospital operator in the U.S. with approximately 37,000 employees, 1,400 employed physicians, and 4,700 integrated network physicians.
“This merger enables Steward to expand our successful, physician-led, integrated care model. We look forward to providing the highest quality of care through keeping patients healthy and being available with advanced care in their community, should they need it,” said Dr. Ralph de la Torre, Chairman and CEO of Steward Health Care. “Steward will be introducing patients, physicians, and employees in six new states to our innovative programs and community commitment model.”
With this acquisition Steward also expands its related businesses including a managed risk platform, Health Choice, which delivers managed care and health insurance services to more than 680,000 patients. The total number of covered lives within Steward’s integrated care network and these insurance products is more than 1.1 million, with paneled lives estimated at 2.5 million.
Steward’s integrated model focuses on the total patient and aims to keep patients healthy. Its hospitals regularly achieve the highest ratings of quality and safety. Steward pioneered its health care model in Massachusetts, where it turned around some of the state’s most struggling hospitals and created a thriving health system that improved outcomes, lowered costs, and established lasting partnerships with local communities.
The 18 hospitals joining Steward Health Care are:
Mountain Vista Medical Center (Mesa, AZ)
St. Luke’s Behavioral Health Center (Phoenix, AZ)
St. Luke’s Medical Center (Phoenix, AZ)
Tempe St. Luke’s Hospital (Tempe, AZ)
Wadley Regional Medical Center at Hope (Hope, AR)
Pikes Peak Regional Hospital (Woodland Park, CO)
Glenwood Regional Medical Center (West Monroe, LA)
The Medical Center of Southeast Texas (Port Arthur, TX)
The Medical Center of Southeast Texas – Victory Campus (Beaumont, TX)
Odessa Regional Medical Center (Odessa, TX)
Southwest General Hospital (San Antonio, TX)
St. Joseph Medical Center (Houston, TX)
Wadley Regional Medical Center (Texarkana, TX)
Davis Hospital and Medical Center (Layton, UT)
Jordan Valley Medical Center (West Jordan, UT)
Jordan Valley Medical Center – West Valley Campus (West Valley City, UT)
Mountain Point Medical Center (Lehi, UT)
Salt Lake Regional Medical Center (Salt Lake City, UT)
Several of the hospitals joining Steward operate in partnership with physician owners. The IASIS/Steward merger complied with normal regulatory approvals and adherence to closing conditions.