St. Mary’s Hospital in Waterbury, Conn., plans to form a joint venture with the LHP Hospital Group, a Texas-based provider of capital and expertise to nonprofit hospitals and hospital systems.
The agreement details an equally shared governance structure. The hospital will retain local control and leadership. The hospital’s Catholic heritage will also be honored and its ethical and religious directives will be maintained. The hospital will also be able to maintain its charity and uncompensated care policies.
“Our joint venture with LHP will be a transformational event for Saint Mary’s which builds upon our success as one of the highest quality, lowest cost hospitals in Connecticut,” said Chad Wable, the hospital’s chief executive officer, in a statement.
“Saint Mary’s has long recognized the value of identifying a strategic capital partner whose goals are compatible with ours,” Wable added. “LHP is the ideal partner. Our joint venture maintains our mission and local control, while providing us with capital and expertise that will enable us to fully implement our strategic plan and continually improve our quality, services and financial position.”
“We look forward to building a highly collaborative hospital environment that includes physicians, caregivers and the community,” said Dan Moen, chief executive officer of LHP. “Our unique model of joint ownership with shared governance will provide Saint Mary’s with the processes, capital and expertise necessary to deliver superior healthcare.”
LHP will own a majority equity position, providing financial, operational and clinical support, with emphasis on implementing updated health information technology and equipment, improving facilities and equipment, focusing on physician recruitment and employee retention and the creation of new jobs in the region.
The hospital intends to use financial support from LHP to eliminate debt, provide more security to its pensioners and create a foundation dedicated to meeting community health needs. In addition, officials said, $75 million will go toward capital expenditures beyond routine levels.
St. Mary’s Hospital anchors St. Mary’s Health System in Waterbury. With 347 beds, the hospital is an acute-care community teaching facility designated as a Level II Trauma Center and Primary Stroke Center and has the area’s only pediatric emergency care unit.
Plano, Texas-based LHP forms joint ventures with acute care facilities across the nation. It is owned by affiliates of the private equity firm CCMP Capital Advisors, LLC, and the CPP Investment Board and members of management and the board of directors.
The agreement between St. Mary’s and LHP is subject to review and approval from regulatory entities.