Centura Health to acquire Utah care sites from Steward Health Care
Five hospitals, Steward Medical Group and joint ventures will become part of Centura’s multi-state, not-for-profit health system and the broader CommonSpirit Health network.
Centura Health, one of its two joint operating sponsors, CommonSpirit Health, and Steward Health Care announced today that they have signed an asset purchase agreement (APA) for CommonSpirit Health to acquire Steward’s Utah care sites, which include five hospitals, more than 35 medical group clinics, and a clinically integrated network of care providers. Centura Health will manage the assets. The five hospitals and their affiliated clinics included in the agreement are Davis Hospital and Medical Center in Layton, Jordan Valley Medical Center in West Jordan, Jordan Valley Medical Center-West Valley Campus, Mountain Point Medical Center in Lehi and Salt Lake Regional Medical Center in Salt Lake City.
“We are excited to welcome the physicians and associates of these essential hospitals, clinics, and outpatient ventures to our connected ecosystem of 21,000 incredible people,” said Peter D. Banko, President & CEO of Centura Health. “Returning to the Mission, as well as purpose and values-driven leadership, started by the Sisters of the Holy Cross in 1875 in Salt Lake City will only serve to further build whole person care and flourishing communities served by these important health ministries. We look forward to supporting, nurturing, and learning from the more than 3,000 caregivers and continuing the longstanding legacy of caring for communities throughout Utah.”
At the close of the transaction, which is expected to be finalized later this year, Steward’s Utah assets will become a part of Centura and CommonSpirit Health. They will be managed by Centura Health and wholly owned by CommonSpirit Health. CommonSpirit is a nonprofit, Catholic health system with more than 2,000 care sites across 22 states. Centura has been serving the communities of Colorado and western Kansas since 1882, when its health ministries in Durango, Colo. and Pueblo, Colo. were founded by religious Sisters. Centura, a Christian-based health system, headquarters in Centennial, Colo. and includes 20 hospitals, 260 clinics, more than 1,000 Centura Health Physician Group providers, urgent care and emergency centers, Flight For Life® and more.
Since 2017, Steward has invested heavily to enhance operations and position these facilities as exceptional performers for the communities of Utah, including implementing numerous quality care initiatives that have garnered third-party clinical recognitions and improved financial performance.
“We are very proud of the work we’ve accomplished in Utah over the past five years to nurture and grow these community hospitals. We could not have accomplished that without our local team members’ focus on putting patients at the center of everything we do,” said Steward Chairman and CEO Dr. Ralph de la Torre. “While bittersweet, this transition will allow Steward to reinvest in our value-based care model and maximize its impact in other regions while also enabling Centura to leverage its impressive scale to enhance care and improve outcomes for patients in Utah.”
With a population of 3.4 million, Utah is forecasting significant growth in the next five years and has a population similar to Colorado with residents who are active in their personal health and wellbeing. When the transaction closes, Centura will collaborate with community stakeholders and hospital and clinic leadership to build a strategic market plan that enables new clinical care options for patients and explores new opportunities to have a greater impact on the future of health care across the three-state region. Centura’s Vision around health and wholeness for every community, every neighborhood, and every life drives its focus to keep care close to home, increase access to care, and engage and support its caregivers in delivering high-performing whole person care.
Centura and Steward will work together to transition employment of associates and employed providers who are in good standing to Centura at the close of the transaction, pending standard regulatory review and approval. Centura will collaborate with hospital leaders and caregivers to ensure a seamless transition for patients with no disruptions to their care.
“We’re excited to extend our healing mission into Utah and bring our approach to whole-person care and clinical excellence to a new region,” said CommonSpirit President and Chief Operating Officer Marvin O’Quinn. “We’re excited to leverage expertise and resources from across our organization to support the health of these communities. At the same time, this expansion will further support our strategic vision to create an integrated continuum of care in communities where we have a presence.”
Citi and SVB Securities LLC acted as financial advisors to Steward Health Care. Kaufman Hall acted as financial advisor to Centura Health. The transaction is subject to customary regulatory approvals and other closing conditions. Terms of the agreement were not disclosed.