LifePoint Health and Springstone announced on August 29 they have entered into a definitive agreement for a subsidiary of LifePoint to acquire a majority ownership interest in Springstone, which has 18 behavioral health hospitals and 35 outpatient locations across nine states.
The transaction is expected to be finalized in early 2023.
Medical Properties Trust will continue to own a majority of Springstone’s real estate locations and retain its minority stake in Springstone’s operating company.
Barclays and Goldman Sachs served as financial advisors to LifePoint Health. Sidley Austin LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel to LifePoint Health. Bradley Corp., Goodwin Procter and Baker Donelson PC served as legal counsel to Springstone, and Goodwin Procter and Baker Donelson PC also served as legal counsel to Medical Properties Trust.
LifePoint Health, a subsidiary of RCCH HealthCare Partners, owns and operates 62 community hospitals, more than 30 rehabilitation and behavioral health hospitals and 170 additional sites of care, including managed acute rehabilitation units, outpatient centers and post-acute care facilities. RCCH HealthCare is a portfolio company of New York City-based private equity firm Apollo Global Management.
According to the LevinPro HC database, this marks the 71st Behavioral Health Care transaction of 2022. Although this is a 4% decrease from the same time last year, when there were 74 transactions announced in the BHC sector, the number of transactions involving inpatient behavioral health hospitals has increased from three during the same period in 2021 to four so far this year.
