H2C Advises St. Luke’s Hospital on Acquisition by McLaren Health Care
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About St. Luke's Hospital
St. Luke’s is a Toledo-area institution located in Maumee, Ohio. The 300-bed hospital was established in 1906. St. Luke’s provides a wide range of critical care to patients, including cardiovascular, spine and neurological, robotic surgery, orthopedic, emergency services, and is equipped with a nationally certified stroke center—all of it in an accessible and comfortable suburban setting. St. Luke’s most cherished resource is its dedicated and diverse medical staff and employees that strive to provide health plus care for each patient in a comforting, personal atmosphere.
About McLaren Health Care
McLaren Health Care, headquartered in Grand Blanc, Mich., is a fully integrated health network committed to quality, evidence-based patient care and cost efficiency. The McLaren system includes 15 hospitals, ambulatory surgery centers, imaging centers, a 490-member employed primary and specialty care physician network, commercial and Medicaid HMOs covering more than 588,000 lives in Michigan and Indiana, home health, infusion and hospice providers, pharmacy services, a clinical laboratory network and a wholly owned medical malpractice insurance company. McLaren operates Michigan’s largest network of cancer centers and providers, anchored by the Barbara Ann Karmanos Cancer Institute, one of only 51 National Cancer Institute-designated comprehensive cancer centers in the United States. McLaren has 26,000 employees and more than 85,500 network providers throughout Michigan and Indiana. Its operations are housed in more than 350 inpatient and ambulatory facilities.
About Hammond Hanlon Camp LLC ("H2C")
H2C is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations and related companies throughout the United States. H2C’s professionals have a long track record of success in healthcare mergers and acquisitions, capital markets, real estate, and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value. H2C offers securities through its wholly owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, visit h2c.com.
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FOR IMMEDIATE RELEASE
"H2C was critical in the success of this process from the early evaluation phase through selecting McLaren, negotiating the terms, and closing the transaction during the COVID-19 outbreak.”
— Bill Carroll
Chairman of the Board,
St. Luke's Hospital
ATLANTA — Oct. 1, 2020 — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to St. Luke’s Hospital (“St. Luke’s”), a regional health provider in Maumee, Ohio serving Greater Toledo, on the system’s acquisition by McLaren Health Care (“McLaren”), a fully integrated health network based in Grand Blanc, Michigan. St. Luke’s will become McLaren’s first hospital outside of Michigan.
Joining the $6 billion McLaren system solidifies St. Luke’s position for the future, a stated goal of the Board of Directors (the “Board”). Following St. Luke’s FTC-ordered divestiture from ProMedica Health System, St. Luke’s operated as an independent community hospital. While known for high-quality care, St. Luke’s faced challenges as a smaller independent hospital in a highly competitive market. In 2019, St Luke’s engaged H2C to evaluate the long-term sustainability of operating independently as well as strategic options, including potential partners. The Board elected to pursue a strategic transaction to maintain St Luke’s role as an essential healthcare provider to the Northwest Ohio community.
H2C conducted an efficient outreach process for St Luke’s that resulted in multiple opportunities to partner with leading health systems and worked closely with the Board to structure the transaction and select the right partner. “H2C was critical in the success of this process from the early evaluation phase through selecting McLaren, negotiating the terms, and closing the transaction during the COVID-19 outbreak,” says Bill Carroll, Chairman of the Board. “With the help of H2C, the Board was able to position St. Luke’s to continue to play an important role in delivering essential and expected health services to the community while providing an attractive environment for our physicians to practice and being an employer of choice.”
As part of the acquisition, McLaren will make significant investments in St. Luke’s to enhance services and grow the hospital’s presence in the community.
“It was our pleasure to work with such a committed Board and management team. Ultimately, because of the great people and excellent quality of care and service, St. Luke’s was very desirable for a partner and was fortunate to have multiple options from high-quality systems. We were thrilled to help secure the long-term future of St. Luke’s and ensure that the hospital will meet the healthcare needs of the community for years to come,” Bayman said. Email Rich.