Vanguard Health Systems, Nashville, has a new majority owner, the Blackstone Group, a New York-based private equity investment firm that paid $1.75 billion for a majority stake in the company. Vanguard management and the company's founding investor, Morgan Stanley Capital Partners, retained a 30% stake in the company. In a news release, Charles Martin Jr., chairman and chief executive officer of Vanguard, said the Blackstone Group will give Vanguard access to more capital for expansion in the company's four existing markets and for acquisitions. Vanguard owns or operates 16 hospitals in urban and suburban markets. The management team led by Martin and Morgan Stanley founded Vanguard in 1997. Earlier this year, Texas Pacific Group paid $1.4 billion for a majority stake in Iasis Healthcare Corp., Franklin, Tenn., which owns or operates 14 hospitals. -- by Vince Galloro
Majority owner opens way for Vanguard to expand
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