GLENWOOD REGIONAL MEDICAL CENTER PLANNING FOR LONG‐TERM GROWTH
Announces Real Estate Transaction as Strategy for Reinvesting in Local Community
Glenwood Regional Medical Center (“Glenwood”), in conjunction with its parent company IASIS Healthcare “IASIS”), today announced the execution of a sale‐leaseback agreement with Medical Properties Trust, Inc. (“MPT”) for the land and buildings associated with the 267‐bed West Monroe hospital.
Working closely together for more than 6 years, Glenwood and IASIS are executing this financial transaction as a means to access additional capital for the use of numerous growth initiatives. This is NOT a sale of hospital operations; instead, IASIS is agreeing to a long‐term lease to continue operating Glenwood for many years to come. There will be no changes to the hospital’s strategic vision; day‐to‐day operations; service line offerings; or employees, physicians and patients as a result of this transaction.
“For us, an exciting window of opportunity has opened for what amounts to borrowing money at a very attractive rate through a common financing strategy called a sale‐leaseback transaction,” said Glenwood Regional Medical Center CEO Ron Elder. “As a way to reposition our balance sheet and transition assets currently locked in real estate, IASIS and Glenwood will be better positioned to fund future growth and expansion projects for the benefit of West Monroe and the patients we so proudly serve.”
Elder continued, “We are very fortunate that Glenwood has an engaged and supportive owner, like IASIS, who is forward‐thinking and focused on growth. This new real estate transaction is further evidence of IASIS’ commitment to continually enhance our mission of providing high quality, affordable care. In this unprecedented time of change for the healthcare industry, we look forward to working together to evolve our care delivery system to meet the changing needs of the communities we serve.”
Since purchasing Glenwood in 2007, IASIS has invested more than $77 million in the hospital and surrounding communities which far exceeds its initial $30 million commitment. Specific capital projects include the:
- Purchase of Ouachita Community Hospital
- Introduction of Hybrid Operating Room
- Establishment of a new helipad for air transport
- Construction of Imaging Center at North Monroe
- Construction of new 24‐bed Telemetry Unit
- New 10‐bed Geriatric Behavioral Health Unit & 10‐bed Adult Psychiatric Unit
- 14 new ICU beds
- New regional Angio Screening Van service
- Louisiana’s first Stemi Air Transport Program
- Level IV Chest Pain Certification in the Emergency Department
IASIS Healthcare’s acquisition of Glenwood Regional Medical Center also led to the establishment of The Living Well Foundation. Net proceeds of more than $44 million were used to create The Ward Five Healthcare Foundation, which was at that time ‐ and remains today, the largest philanthropic organization in West Monroe.
IASIS and Glenwood chose to partner with MPT because of its solid reputation with healthcare properties and the long, successful relationship IASIS has had with leasing a Utah hospital from MPT. The long‐term agreement between IASIS and MPT includes a commitment to fund future expansion and capital projects at Glenwood and a right of first refusal clause that gives IASIS the opportunity to repurchase any and all assets, should MPT decide to sell the real estate. Subject to customary closing approvals and conditions, the transaction is expected to close by the end of September.
About Glenwood Regional Medical Center
Glenwood Regional Medical Center is located in West Monroe, Louisiana and offers comprehensive healthcare services, including emergency care, heart care, advanced surgical procedures, diagnostic imaging, maternity care, rehabilitation services, and help for a broad range of medical conditions. Equipped with the most advanced medical technology, and staffed by a team of highly skilled healthcare professionals, Glenwood is committed to providing high‐quality care in a friendly hospital environment.
About IASIS Healthcare
IASIS Healthcare, located in Franklin, Tennessee, is a leading provider of high quality, affordable healthcare services in urban and suburban markets. With total annual net revenue of approximately $2.4 billion, IASIS owns and operates 19 acute care hospitals, one behavioral health hospital, several outpatient service facilities, more than 160 physician clinics, and Medicaid and Medicare managed health plans in Arizona and Utah that serve more than 176,000 members. IASIS’ healthcare facilities offer a variety of access points for convenient patient care in numerous regions across the U.S., including: Salt Lake City, Utah; Phoenix, Arizona; Tampa‐St. Petersburg, Florida; five cities in Texas, including Houston and San Antonio; Las Vegas, Nevada; and West Monroe, Louisiana. For more information on IASIS, please visit the Company’s Web site at www.iasishealthcare.com.