For-profit Ardent Health Services, Nashville, has signed a definitive agreement to buy three-hospital Forum Health, Youngstown, Ohio, for $69.8 million, plus a capital commitment of $50 million to $70 million, Ardent and Forum said. Ardent also would acquire Forum's physician group, two diagnostic imaging centers and five laboratories.
Ardent signs agreement to buy Forum Health
Not-for-profit Forum Health filed for Chapter 11 protection in March 2009 in U.S. Bankruptcy Court in Youngstown. In bankruptcy court filings last year, Forum Health reported $286.1 million owed to secured creditors and $3.3 million owed to unsecured creditors, or $289.4 million in total.
The sale will require approval from the court, according to Ardent and Forum. Ohio Attorney General Richard Cordray also filed notice with the court that state law requires his approval for the sale or other change in control involving 20% of the assets of a not-for-profit healthcare entity. The asset purchase agreement, which was filed today with the bankruptcy court, also lists federal antitrust review of the deal as a closing condition. Ardent has eight hospitals in two states.
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