Hammond Hanlon Camp LLC Advises Tower Health on its Acquisition of 5 Pennsylvania-based Hospitals from Community Health Systems
posted on June 6, 2018
NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the financial advisor to Reading Health System (the "System” or the “Company”), now known as Tower Health, on its acquisition of five hospitals from Franklin, Tenn.-based Community Health Systems. Headquartered in Reading, Pa., the Company is a 714-bed, state-of-the-art health system serving southeastern Pennsylvania-based Community Health Systems.
Community Health System was in the process of selling dozens of its hospitals and had decided to sell five hospitals located in a service area targeted by the System for growth. The acquisition was transformational as it enabled the System to grow from a one-hospital system to a six-hospital regional provider. It also allowed for the continued development of acute care and related assets and provider network capabilities to serve the region in a cost-effective manner.
“The H2C team created value for us by negotiating significant improvements in the final terms of the acquisition, including the initial purchase price,” said Clint Matthews, CEO of Tower Health.
The five facilities are Brandywine Hospital in Coatesville; Chestnut Hill Hospital in Philadelphia; Jennersville Hospital in West Grove; Phoenixville Hospital in Phoenixville; and Pottstown Hospital in Pottstown. The System engaged H2C as a buy-side advisor to help structure and negotiate a proposal for the acquisition of the five hospitals. H2C led the transaction, which involved the acquisition, due diligence, bridge loan and permanent financing processes.
The System completed the acquisition of the hospitals on Oct. 1, 2017, and the post-acquisition integrated healthcare system was rebranded as Tower Health (“Tower”).
“H2C was pleased to assist Tower Health in emerging as the successful bidder for the five hospitals and to serve as its Financial Advisor on both the interim and permanent financings,” said Michael Hammond, Principal at H2C. Email Michael
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ABOUT TOWER HEALTH
Tower Health is a strong, regional, integrated healthcare provider/payer system that offers leading-edge, compassionate healthcare and wellness services to a population of 2.5 million people.
Together, our six hospitals and other entities provide a full range of medical care — from prevention, screenings and education, to the latest clinical services and surgeries available, to rehabilitation. We also offer wellness programs and public health services that ensure our communities are the healthiest they can be. Our caring, highly trained physicians and staff are committed to patient safety and patient satisfaction.
ABOUT HAMMOND HANLON CAMP LLC
Hammond Hanlon Camp LLC (“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. Hammond Hanlon Camp LLC offers securities through its wholly-owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, visit h2c.com.
MEDIA CONTACT
Kelly T. Duong
Hammond Hanlon Camp LLC
858.242.4810
kduong@h2c.com
“The H2C team created value for us by negotiating significant improvements in the final terms of the acquisition, including the initial purchase price."
- Clint Matthews, CEO
Tower Health