The hospital turnaround arm of Quorum Health Resources, a subsidiary of Brentwood, Tenn.-based Quorum Health Group, has changed its name for the second time in two months. It began as Intensive Resource Group and was renamed Vector Health Solutions, which was quickly dropped when Quorum lawyers discovered trademark problems (Sept. 20, p. 4). The Brentwood-based turnaround group is now called Cambio Health Solutions.
Physicians' Specialty Corp. earlier this month completed a management buyout backed by TA Associates, a Boston-based private-equity firm. The transaction was valued at $106.8 million. Financing included $60 million in bank credit, $15 million in subordinated debt and $32.8 million in equity. Atlanta-based Physicians' Specialty manages practices specializing in ear, nose, throat and neck and related areas of practice. It is affiliated with 105 physicians, one dentist and 86 allied healthcare professionals in seven states. It also owns a sleep diagnostic lab and other ancillary facilities.
Highland Park (Ill.) Hospital, a 191-bed facility in suburban Chicago, earlier this month signed a definitive agreement to merge into two-hospital Evanston (Ill.) Northwestern Healthcare. The merger is expected to be completed Jan. 1. The newly merged organization will continue to be called Evanston Northwestern Healthcare. The two announced this summer that they intended to merge (July 12, p. 25). As part of the merger, Highland Park Hospital will endow a $100 million community foundation.
Memorial Medical Center of South Amboy, N.J., which closed in August because of a lack of funds, will reopen in January and will be affiliated with Deborah Heart and Lung Center of Browns Mills, N.J., officials said Nov. 18. Officials from both facilities said they will jointly reopen Memorial Medical Center Jan. 3. "It's strictly a clinical partnership, not a financial transaction," said James Monahan, president and chief executive officer of Memorial Medical Center. He stressed that the financial burden will be placed solely on Memorial Medical Center. "We're going to use the expertise of their staff to help select equipment as well as staffing here," he said. In August, the board of the 161-bed community hospital cited severe financial problems. The hospital lost $4.5 million last year.