Rural Healthcare Group Acquires Steward Physicians Network for $245M
NASHVILLE, Tenn. – Tennessee-based Rural Healthcare Group announced Tuesday that it has acquired Steward Medical Group and Steward Health Care Network, the physicians network of Steward Health Care System.
Since Steward filed for Chapter 11 bankruptcy in May, the sale of Steward assets must be approved through U.S. Bankruptcy Court in Houston, and a hearing regarding the approval is set for Friday, with an objection of sale deadline set at 11:59 p.m. Wednesday.
The aggregate purchase price is $245 million, according to documents filed with the bankruptcy court, and escrow deposit is offered at $24.5 million.
Steward Medical Group and Steward Health Care Network service the three local Steward hospitals – Trumbull Regional Medical Center in Warren, Sharon Regional Hospital in Sharon, Pa., and Hillside Rehabilitation Hospital in Howland – as well as several smaller 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,” Benson Sloan, CEO of RHG, said in the announcement. “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.”
According to the announcement, RHG plans to make significant investments in the network’s infrastructure, which will allow providers to continue seeing patients in existing clinics across the network. The transaction will separate the network from Steward’s hospital system, transitioning clinics from health system-owned to independent.
“We are excited for this partnership with RHG. Working together, we will improve the patient and provider experience while enhancing the overall quality of care,” said Dr. Joseph Weinstein, president of Steward Medical Group and Steward Health Care Network.
RHG is owned by Kinderhook Industries LLC, a private investment firm.
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