Ascension to buy Tennessee system Williamson Health in $1B deal
Article excerpt
Ascension beat out other offers, including from HCA and Optum, to give Williamson a financial lifeline amid serious challenges facing regional hospital operators. Williamson’s decision to sell culminates a two-year strategic planning process after the system, which operates 30 locations, including its flagship hospital the Williamson Medical Center, determined it wouldn’t be able to survive the regulatory changes, workforce shortages and increasing expenses facing hospitals without more cash. Last fall, Williamson distributed requests for deal proposals to 28 local, regional and national healthcare organizations. The system whittled down interested parties until it had three companies interested in a deal: Ascension Saint Thomas, for-profit hospital operator HCA Healthcare and Optum, the health services division of healthcare behemoth UnitedHealth. The Optum offer represented a 10-year partnership agreement instead of an outright sale. Williamson’s board gave it careful consideration, given it was an opportunity for the system to remain independent - the preference of the board. But “in addition to the evaluation of the Board’s foundational goals and objectives for a potential sale, the Board felt a unanimous and overwhelming sense of confidence and connection with Ascension Saint Thomas,” Bo Butler, the chairman of Williamson’s board, said in a statement. “Sometimes the...
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The proposed transaction has an economic value of nearly $1 billion, including a $700 million purchase price along with capital investments, upgrades to Williamson’s electronic health record and service expansions, a spokesperson said.
