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Hospital Partners of America plans $155 million asset sale to IASIS
By Lisa Kerner
Charlotte, N.C., March 2 - Hospital Partners of America, Inc. Chapter 7 trustee Alfred T. Giuliano asked the U.S. Bankruptcy Court for the District of Delaware to approve bidding procedures for the sale of debtor SJ Medical Center Management, LLC's right, title and interest in and to a 78.2% membership interest in SJ Medical Center, LLC (St. Joseph Medical Center), a 792-bed facility in downtown Houston, according to a Monday court filing.
The purchase price would be approximately $155 million, the filing said.
No hearing date has been set.
In addition, Hospital Partners wants the court to approve IASIS Healthcare LLC as the stalking horse bidder, entitled to receive a break-up fee of $5 million and reimbursement of expenses up to $500,000 if it is not the highest bidder at auction.
IASIS has made a good faith deposit of $7 million.
The initial overbid must be $8 million more than the stalking horse bid.
Minimum overbids must be in increments of at least $2.5 million.
The bid deadline, auction and sale hearing dates have yet to be determined.
IASIS said under its sale agreement with Hospital Partners, a group of independent investors, most of whom are physicians on the medical staff of St. Joseph Medical Center, will retain a 21.8% ownership interest in the hospital, which has a total annual net revenue of about $245 million.
The purchase price will be based upon an enterprise value of $165 million and is subject to customary closing adjustments, according to an IASIS news release.
IASIS, a Franklin, Tenn.-based owner of medium-sized acute care hospitals, expects to close the transaction during its third fiscal quarter of 2011.
Hospital Partners of America, a Charlotte, N.C.-based privately held company that develops and operates hospitals, filed for bankruptcy on Sept. 24, 2008. Its Chapter 7 case number is 08-12180.
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