Former executives of Triad Hospitals have started a new company that plans to acquire hospitals in joint ventures with not-for-profit systems, its founders said in an exclusive interview with Modern Healthcare.
Legacy Hospital Partners, Plano, Texas, will feature Denny Shelton as nonexecutive chairman and Dan Moen as president and chief executive officer. At Triadacquired last year by Community Health SystemsShelton was chairman, president and CEO, and Moen was executive vice president for development. The new companys board includes three former chairmen of the American Hospital Association and the outgoing chairman of the Premier hospital alliance. Legacy plans to grow as a private company and prove that entering joint ventures with not-for-profits is a profitable strategy, Shelton said.
The company is backed by two investors: CCMP Capital Advisors and the Canada Pension Plan Investment Board. The investors have pledged to fund the company up to $500 million as needed for acquisitions, said Nancy-Ann DeParle, a managing director with CCMP and former administrator of the Health Care Financing Administration, now known as the CMS. The management team also has a stake in the company.
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