Investment Will Allow Rural Arizona Acute Care Hospital to Exit Bankruptcy in Early 2015
Blue Wolf Capital Partners LLC (“Blue Wolf”), the New York-based private equity firm, today announced that Blue Wolf Capital Fund III, L.P., an affiliate of Blue Wolf, has been named the stalking horse bidder for the assets of Florence Hospital at Anthem (“Florence”), an acute care hospital in Florence, Arizona. Under the agreement, Blue Wolf Capital Fund III, L.P. has designated New Found Health LLC., one of its portfolio companies, to be the stalking horse bidder at a court auction to be held on January 7, 2015.
Florence is a 96,000 square foot, 36-bed general acute care hospital that serves the fast-growing rural population of Florence, located in Pinal County, Arizona, approximately 60 miles southeast of Phoenix. The hospital, which opened in February 2012, filed for Chapter 11 bankruptcy protection in March of 2013. Blue Wolf’s bid will allow the hospital to exit bankruptcy and continue to serve the rapidly growing population of the surrounding communities.
Adam Blumenthal, Managing Partner of Blue Wolf and Chairman of New Found Health, said, “Working with our senior healthcare advisors, including Richard Wright, Dr. Richard Becker and the Florence senior leadership team, we have developed a comprehensive, sustainable acute care model which will deliver excellent, efficient care at Florence. The talented new leadership at Florence has already made progress addressing the hospital’s complex challenges, and has additional plans to help the hospital achieve its potential. We look forward to the opportunity to work with the Florence team to realize this very attainable vision.”
Art Doloresco, Chief Executive Officer of Florence, said, “After an extensive search for a capital partner and in consultation with our financial advisor, Blue Wolf emerged as our preferred partner due to their significant healthcare experience. The firm understood our needs, asked the right questions, and has remained both engaged and relentless in their pursuit of a successful outcome. The Blue Wolf team has demonstrated both the commitment and energy requisite for such a complex transaction.”
Blue Wolf, which began investing in healthcare in 2008, believes that engagement with multiple community constituencies and alignment of interests with payors, physicians, providers, the community and employees is fundamental and essential to unlocking better care and value in the nation’s healthcare system. “Our access to capital and the involvement of a deeply experienced set of industry experts can benefit the traditional hospital system in this country in many ways, including serving as the catalyst some hospitals need as they modify delivery models into more responsive and economical facilities with enhanced outpatient capabilities,” said Michael Ranson, Partner of Blue Wolf.
About Florence Hospital at Anthem
Florence Hospital at Anthem is a 36-bed general acute-care hospital combining traditional hospital services with pioneering efforts in rapid, accurate and compassionate emergency care. The hospital offers services that include Emergency, Radiology, Laboratory, and Rehabilitation and has a medical staff roster of more than 105 physicians representing more than sixteen specialties. The Hospital’s Door to Doc in 31 Minutes™ policy guarantees patients will be seen by a board-certified emergency physician within 31 minutes of arrival.
About New Found Health LLC
New Found Health is a healthcare management company dedicated to developing innovative care models involving stakeholder alignment, operational excellence, and a strong commitment to improving community healthcare outcomes.
About Blue Wolf Capital Partners
Blue Wolf Capital Partners LLC, a private equity firm founded in 2005, specializes in control investments in middle market companies. Leading by experience, and with a reputation for excellence, Blue Wolf transforms companies. Combining a collaborative approach with strategic and operations resources, Blue Wolf manages challenging situations and complex relationships between business, customers, employees and regulators to generate superior returns and build value for stakeholders. For additional information, please visit www.blue-wolf.com.