Integris, HPI, USPI forming joint venture
Two health systems and a leading outpatient surgery provider are forming a joint venture they say will give patients more choices in where to get care.
HPI Holdings and Integris Health, both Oklahoma City-based health systems, and United Surgical Partners International have signed an agreement to form a joint venture that the parties expect will close in the fourth quarter.
The deal will combine their service offerings and create an affiliated group of more than 1,300 physicians in several specialties across the Oklahoma City metro region.
In a joint statement, the trio said that Integris/USP Health Ventures is a joint venture between Integris and USPI, which will buy a controlling interest in HPI.
HPI has two physician-owned hospitals, as well as outpatient centers and clinics in Oklahoma City. Not-for-profit Integris Health has eight acute-care hospitals in Oklahoma, including its flagship Integris Baptist Medical Center in Oklahoma City. Integris, part of the Mayo Clinic Care Network, also runs a cancer center, psychiatric hospital, rehabilitation hospital, hospice and home health operations. Its facilities cover 50 towns and cities in Oklahoma, and it employs more than 9,500 people, according to its website. Former Intermountain Healthcare executive Timothy Pehrson took over as CEO on Aug. 1.
Addison, Texas-based United Surgical Partners International is a subsidiary of the investor-owned hospital chain Tenet Healthcare Corp. It operates more than 270 surgical facilities, 24 imaging centers and more than 100 urgent care facilities in 28 states. Dallas-based Tenet upped its stake in USPI to 95% for $630 million in April. Baylor Scott & White Health, also based in Dallas, owns the remaining 5%.
Tenet's ambulatory segment performed well in the second quarter of 2018, which ended June 30, producing same-facility revenue growth of 6.9% year-over-year.
In their news release announcing the deal, HPI's CEO, Ed Gray, said his company has been successful in its standalone settings, and is excited to establish a stronger connection with Integris, which offers the state's most comprehensive services, from primary care to transplant.
Meanwhile, Pehrson said in the release the deal will help Integris improve access to care, boost its patient population, lower costs and improve customer experience.
USPI President Brett Brodnax said in the release USPI is excited to expand its relationship with Integris and partner with HPI.
The deal is subject to regulatory approvals and closing conditions. Brown Gibbons Lang & Company initiated the transaction and served as HPI's financial advisor.
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