Five healthcare executives including hospital leaders Gary Mecklenburg and Ronald Spaeth stand to collect part of the approximately $210 million that Select Medical Holdings Corp. is paying to buy Regency Hospital Co., in which they are all part owners. But company officials are mum on how the money will be distributed.
Regency execs to cash in, but amounts undisclosed
Mecklenburg is the former chairman of the American Hospital Association and former president and CEO of Northwestern Memorial HealthCare. Spaeth, a former AHA board member, was a longtime Chicago-area hospital CEO and president of the Evanston Northwestern Healthcare Foundation.
The Regency sale agreement, which was made public through SEC filings, says the other individual sellers besides Mecklenburg and Spaeth are: George Bruton, a vice president and founding member of Alpharetta, Ga.-based Regency; Anne Mullendore, a senior vice president and founding member of Regency; and Rod Laughlin, a founder and longtime president of Regency who today is vice president of development.
The deal to buy Regency was announced last month (June 28, p. 8). The other seller included in the deal is Chicago-based private equity firm Waud Capital Partners, which formed Regency along with Laughlin in 2001 to operate long-term acute-care hospitals. The records do not disclose how proceeds of the sale will be distributed among the principals.
Regency is the second Waud-owned company of which Mecklenburg was chairman to be sold off to investors this year. He was, and remains, chairman of the Canton, Ohio-based Hospitalist Management Group, which provides outsourced hospitalist physician management. HMG was sold to another private equity firm in April under undisclosed terms.
Mecklenburg is an executive partner at Waud Capital Partners, the private equity firm that controls Regency as part of a portfolio that also includes a petroleum company, a pharmaceutical research group and a litigation outsourcing firm. Mecklenburg also serves as chairman of the board at Regency.
Reeve Waud , the founder and managing partner of Waud Capital, is an unpaid member of the board of directors of the Northwestern Memorial Foundation, according to tax filings of the charitable hospital foundation.
Mecklenburg retired in 2006 from Northwestern Memorial HealthCare, the corporate parent of 873-bed Northwestern Memorial Hospital, an academic medical center in Chicago. Mecklenburg today also serves as a director of medical equipment supplier Becton, Dickinson & Co., the Franklin Lakes, N.J.-based firm widely known by its brand name, BD.
Spaeth was president and CEO of Highland Park (Ill.) Hospital from 1983 through 2002 before he became president of the Evanston Northwestern Healthcare Foundation. His other past roles include serving on the board of directors of the AHA and the board of commissioners of the Joint Commission, as well as a current role as a director at Stericycle, a medical waste disposal company based in Lake Forest, Ill.
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