"Proskauer Advises the Colorado Health Foundation on $1.45 Billion Sale of Equity Stake to HCA-Healthstone, LLC
June 17, 2011 (Chicago)—Proskauer’s nationally recognized Health Care Department represented the Colorado Health Foundation, which works to provide Coloradans with access to health coverage and quality care, in an agreement to sell its approximately 40 percent equity share in HCA-HealthONE, LLC to Hospital Corporation of America (HCA) for $1.45 billion.
HCA-HealthONE, LLC began in 1995 as a joint venture with HCA and Denver’s HealthONE hospitals. Since that time, the purpose and intent of the original joint venture to stabilize, sustain and grow Denver’s HealthONE hospitals, while maintaining an ongoing commitment to community benefit and charity care, have been realized. During the past 16 years, the Foundation has grown beyond its original hospital ownership responsibilities in Denver, expanding to serve every county in Colorado through its investment grants and partnerships, which have resulted in more than $250 million provided to Colorado since 2006.
By selling its equity stake and investing the proceeds in a diversified and more stable managed portfolio, the Foundation will continue supporting its mission throughout the state in perpetuity. The Foundation anticipates that grantees and other organizations will see few, if any, changes in their relationship with the Foundation.
The proposed transaction also enables HCA to continue its tradition of managing, governing and investing in its existing network of acute-care hospitals serving the Rocky Mountain region. Terms of the memorandum of understanding include several key covenants that ensure HealthONE will remain one of Colorado’s premier hospital networks. Specifically, the agreement calls for establishment of an independent community board of trustees for purposes of providing community perspective and advice in connection with the operation of the HealthONE system and continuation of HealthONE’s commitment to indigent care and Graduate Medical Education residency programs to train the next generation of physicians.
The agreement is pending regulatory review and is expected to close the second half of this year. Upon closing, the Foundation will become the largest foundation in Colorado, with assets of more than $2 billion.
Proskauer’s Health Care Department combines specialized health law and industry experience with specific practice concentrations, enabling the firm to provide corporate and transactional, regulatory, bankruptcy, litigation and investigatory, technology, labor, real estate, tax and intellectual property representation for clients from across the industry. "
Source of Proskauer’s Health Care Department , Joseph Leccese, Proskauer Rose LLP Post
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