Ardent Health Services’ Acquisition of East Texas Medical Center Regional Healthcare System’s Assets


Bracewell LLP represented East Texas Medical Center Regional Healthcare System and its affiliates on the deal

East Texas Medical Center Regional Healthcare System (ETMC) has selected Ardent Health Services (Ardent) and The University of Texas System (UT System), which includes The University of Texas Health Science Center at Tyler (UT Health Northeast), to form a new health system to benefit East Texas, officials announced today. Ardent will assume majority ownership and day-to-day operations of the new system. Terms of the acquisition were not disclosed.

Based in Tyler, Texas, ETMC includes 502-bed East Texas Medical Center Tyler and a network of nine hospitals and 39 clinics, including regional hospitals located in Athens, Carthage, Henderson, Jacksonville, Pittsburg and Quitman. Additionally, in Tyler, two other inpatient facilities, the ETMC Rehabilitation Hospital and the ETMC Specialty Hospital, are included in the new health system. Other assets include the Olympic Plaza Tower, 13 regional rehabilitation facilities, physician clinics, two freestanding emergency centers, regional home health services covering 41 counties, a behavioral health center and a comprehensive 7-trauma center care network, including a Level 1.

In February 2017, ETMC leadership began the search for a strategic partner to assist the organization in continuing its mission of improving the health and quality of life for East Texans.

The UT System will contribute its Tyler-based UT Health Northeast hospital and 12 physician clinic operations to the new 10-hospital system. The newly created health system will expand medical education, research and community health. It will be an affiliate of the world-renowned University of Texas System, one of the largest academic and health systems in the country.

Governance will be shared through a newly formed board of directors, which will include local physicians. Proceeds from the transaction will be used to create a local foundation to further the health and wellness of East Texans. The transaction is expected to close following the completion of due diligence and required regulatory approvals.

Ardent currently operates 20 hospitals in six states, including 445-bed BSA Hospital in Amarillo, Texas, and 83-bed Seton Medical Center Harker Heights in Harker Heights, Texas. The partnership marks Ardent’s eighth joint venture with a leading not-for-profit health system and its second this year. Ardent maintains joint ventures with institutions such as Seton Healthcare, Hackensack Meridian Health Network and Sacred Heart Health System. In May, the company announced plans to partner with The University of Kansas Health System to purchase St. Francis Health in Topeka, Kansas.

The East Texas Medical Center Regional Healthcare System is a network of nine hospitals and 39 clinics, caring for more than 300,000 East Texans a year. ETMC is committed to the highest standards of care by offering advanced technology and resources in local communities to improve quality of life throughout East Texas.

Established in 1949, the ETMC Regional Healthcare System includes hospitals in Athens, Carthage, Henderson, Jacksonville, Pittsburg and Quitman and three inpatient facilities in Tyler – ETMC Tyler, the ETMC Rehabilitation Hospital and the ETMC Specialty Hospital. The flagship and regional referral facility, ETMC Tyler, is licensed for 502 beds and is home to the region’s only Level I trauma center. ETMC, led by Elmer G. Ellis, is based in Tyler (TX).

Bracewell LLP represented East Texas Medical Center Regional Healthcare System and its affiliates with a team including Janice Z. Davis (Picture), Cristy C. Edwards, R. Todd Greenwalt, Brian P. Teaff, Daniel E. Hemli, K. Brock Bailey, Timothy A. Wilkins, Edmund W. Robb, Kevin T. Schutte, Robert E. Sheeder, Jacqueline R. Java, J. Quitman Stephens, C. Robert Baird, Ian R. Brown, Nigel Wheeler , Christie L. Latimer, Paige H. Abernathy, Douglas F. Monkhouse , Karthika Perumal, Ph.D., Jackie Z. Coleman, Lauren A. West, Joshua T. McNulty, Andrea Broyles and Cheyenne J. Rogers

Involved fees earner: Janice Davis – Bracewell; Ian Brown – Bracewell; Cristy Edwards – Bracewell; Brian Teaff – Bracewell; Nigel Wheeler – Bracewell; Paige Abernathy – Bracewell; Joshua McNulty – Bracewell; Todd Greenwalt – Bracewell; Daniel Hemli – Bracewell; Jacqueline Java – Bracewell; Brock Bailey – Bracewell; Robert Baird – Bracewell; Christie Latimer – Bracewell; Jackie Coleman – Bracewell; Timothy Wilkins – Bracewell; Edmund Robb – Bracewell; Kevin Schutte – Bracewell; Douglas Monkhouse – Bracewell; Andrea Broyles – Bracewell; Cheyenne Rogers – Bracewell; Robert E. Sheeder – Bracewell; Quitman Stephens – Bracewell; Lauren West – Bracewell; Karthika Perumal – Bracewell;

Law Firms: Bracewell;

Clients: East Texas Medical Center Regional Healthcare System;

Avatar

Author: Ambrogio Visconti