Norwood Hospital Owner To Merge With Tennessee Hospital Chain

Steward Health Care is set to become the largest operator of private hospitals following a merger with IASIS Heath Care.

The Boston-based hospital chain announced that they have entered an agreement to merge operations with the Tennessee-based company, giving the new company 36 hospitals across 10 states and managed care operations in Arizona, Utah and Massachusetts. Terms of the deal were not released, but a source told the Wall Street Journal that Steward will pay $1.9 billion for IASIS.

The merger is expected to close in the third calendar quarter of 2017, subject to customary regulatory approvals, terms and conditions, according to a Steward release.

“Our physician-driven accountable care model focused on keeping patients healthy is transforming the health care industry as this transaction demonstrates,” said Dr. Ralph de la Torre, Chairman and CEO of Steward Health Care said in a release. “Our model shows how the industry can successfully shift toward a more cost-effective local, coordinated approach that puts patients first.”

Once the deal goes through, Steward will operate about 7,500 patient beds and employ 38,000 workers including more than 1,800 directly employed multi-specialty physicians and several thousand aligned physicians.

IASIS brings 10 hospitals to the merged company. Revenue for 2018 are projected to be in the $8 billion range.

Steward came to Massachusetts in 2010 when it acquired Caritas Christi Health Care in 2010

Image via Norwood Hospital