The Federal Trade Commission has cleared the way for Cogent Healthcare, Brentwood, Tenn., and Hospitalists Management Group, Canton, Ohio, to merge, allowing the creation of a company with about 1,000 physicians and other providers practicing at 100 facilities in 27 states—a company that its leaders predict will grow even larger.
Cogent, HMG deal cleared by FTC
The deal was originally announced last month, and details include naming the new company Cogent-HMG, and locating it at Cogent's headquarters in the Nashville suburbs. HMG's CEO, Dr. Stephen Houff, will be the new company's CEO, while Cogent CEO Gene Fleming will serve as its executive chair.
While most leaders will be moving to Tennessee, HMG's Canton office will remain open “to support operations in the upper Ohio River Valley,” Fleming told Modern Physician last week.
While the two companies are almost equal in size, HMG has traditionally focused on small- to medium-sized hospitals in suburban and rural markets, while Cogent has partnered with academic medical centers and medium- to large-sized hospitals, so this merger “will allow a much broader footprint,” Fleming said.
Also, most of the two companies' growth has historically been “organic” and resulted from expanding its client base, but the merger will allow more growth by acquisition.
“We anticipate that our growth will accelerate” as a result of the merger, Fleming said.
Houff added that “the strength of the combined organization will put us in a position for nonorganic growth.”
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