Community hospital receives strategic alternatives review and valuation analysis in connection with sale to large, integrated health system

Client need

Our client (Hospital) was a 100-bed-plus acute care, general community hospital located in a small town in central Pennsylvania, which provides inpatient, long-term care, outpatient and emergency care services for residents in its primary service area.

As it goes with many rural community hospitals, the Hospital began to experience a few challenges relative to its future, including:

  • Decline in the service area’s population
  • Increased competition for physicians
  • Greater demand for investments in equipment and infrastructure

The Hospital was approached by a NYSE-listed operator of hospital systems with an interest in a potential transaction to acquire the hospital and bring it into the fold of its current hospital systems.

Baker Tilly Capital solution*

With a proposal on the table from the interested acquirer, Baker Tilly Capital was engaged by the Hospital’s Board of Trustees as its financial advisor to evaluate the hospital’s available strategic alternatives and ultimately develop a strategic plan. As part of the plan, our team of corporate finance specialists provided a comprehensive valuation analysis that included a range of values for the potential sale of the hospital.

Results

Upon review of our team’s strategic alternatives analysis, the Hospital’s Board of Trustees determined it was in the best interest of the community to sell the hospital and its assets to the interested party. As a result of our valuation analysis, the hospital completed the transaction with the public company in an efficient manner before it became financially distressed. More importantly, our team’s work helped assure the Board of Trustees that a timely transaction would best preserve a quality hospital for the community well into the future.

For more information on this deal, or to learn how Baker Tilly Capital specialists can help with evaluating your strategic alternatives, please contact our team.


* Services provided by Curtis Securities, LLC, which merged with Baker Tilly Capital, LLC

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