LHP Hospital Group, Plano, Texas, and St. Mary's Health System, Waterbury, Conn., are expanding their proposed joint venture (PDF) to include Greater Waterbury Health Network, the operator of the only other acute-care hospital in Waterbury, according to a news release.
LHP, Conn. system broaden joint-venture plan
Investor-owned LHP would own an 80% stake in the joint venture, with each of the tax-exempt partners holding a 10% interest, according to the release. Governance would be split between the three entities. The joint venture, if approved by regulators, would spend $400 million to build a replacement for the two hospitals, 175-bed St. Mary's Hospital and 214-bed Waterbury Hospital. Combined, the two hospitals have $520 million in annual revenue.
LHP would manage the joint venture, subject to both community benefit standards applicable to tax-exempt providers and Catholic ethical and religious directives, according to the release.
LHP and St. Mary's announced plans for a joint venture in March. Connecticut's attorney general and certificate-of-need regulators already are reviewing that proposed transaction. Privately held LHP operates two hospital joint ventures and has agreements in place for two others in addition to the Connecticut deal.
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