Mariner Health Group announced it signed an agreement to become the preferred provider of subacute services to the AmHS/Premier/SunHealth hospital alliance.
Under the terms of the agreement, the alliance will receive options to acquire up to 2.1 million newly issued shares of Mariner stock at market value. Mariner stock closed at $15.50 per share in NASDAQ trading on Jan. 16.
Under the arrangement, Mariner will contract individually with member hospitals and systems to provide subacute services.
The arrangements with members "will be tailor-made to each provider," according to Arthur W. Stratton M.D., chairman and chief executive officer at Mariner, a New London, Conn.-based post-acute healthcare provider.
The alliance will own up to 10% of Mariner's stock once it has acquired the options over a five-year period as part of the deal, Stratton said.
Mariner began negotiations with American Healthcare Systems a year ago and continued the talks as AmHS merged with Premier Health Alliance last year, Stratton said. AmHS/Premier then merged with SunHealth Alliance last November, forming the nation's largest alliance, with membership of about 1,700 hospitals.