CCMP Capital and the Canada Pension Plan Investment Board have formed Legacy Hospital Partners Inc., an acquisition platform focused on acute care hospitals in small cities and in select urban markets throughout the United States. The two firms have committed up to $500 million in equity, with CCMP serving as lead investor. Legacy is being led by CEO Daniel Moen, former executive VP for development with Triad Hospitals.
Legacy Hospital Partners, Inc. (Legacy), a privately held hospital company that will own, operate and manage acute care hospitals in small cities and in select urban markets throughout the United States, commenced operations today.
Dan Moen, Legacy chief executive officer, said the Plano, Texas-headquartered company will proceed with a unique strategy of acquiring hospitals through joint ventures with not-for-profit hospital companies. Legacy is owned by affiliates of private equity firm CCMP Capital Advisors, LLC (CCMP Capital), the Canada Pension Plan Investment Board (CPPIB), and members of management. CCMP Capital's investment in Legacy is being led by Managing Director Nancy-Ann DeParle, former administrator of the Health Care Financing Administration, now the Centers for Medicare and Medicaid Services. The members of Legacy's board of directors are distinguished not-for-profit and for-profit hospital executives, individuals with extensive healthcare experience and representatives from management and the financial sponsors.
Legacy's board of directors includes the following:
James D. Shelton, chairman of the board, Legacy Hospital Partners, Inc. (Plano, TX) and former chairman and chief executive officer, Triad Hospitals, Inc.; formerly on the board and executive committee of the American Hospital Association and former chairman of the Federation of American Hospitals; Daniel J. Moen, chief executive officer, Legacy Hospital Partners, Inc. (Plano, TX) and former executive vice president for development, Triad Hospitals, Inc.; David L. Bernd, chief executive officer, Sentara Healthcare (Norfolk, VA) and former chairman of the American Hospital Association; Donald B. Halverstadt, M.D., senior physician and former chief of the Donald B. Halverstadt, M.D. Center of Excellence in Pediatric Urology at the Children's Hospital of Oklahoma, and vice chairman and one of ten Governors of the Oklahoma University Medical Center Hospital System of the Health Sciences Center in Oklahoma City., and former chairman of the University of Oklahoma Board of Regents (Oklahoma City, OK); Douglas D. Hawthorne, chief executive officer, Texas Health Resources (Arlington, TX); formerly on the board and executive committee of the American Hospital Association and former chairman of Premier, an alliance of not-for-profit hospitals and healthcare systems; George F. Lynn, president emeritus, AtlantiCare (Atlantic City, NJ); former chairman of the American Hospital Association; Gary A. Mecklenburg, executive partner, Waud Capital, LLC (Chicago, IL); retired chief executive officer, Northwestern Memorial Healthcare; and former chairman of the American Hospital Association; Uwe Reinhardt, Ph.D., James Madison professor of political economy at Princeton University (Princeton, NJ); A. James Tinker, president emeritus, MERCYCARE Service Corporation (Cedar Rapids, IA); formerly served on the board of American Hospital Association and chaired the Regional Policy Board 6; Nancy-Ann DeParle, managing director, CCMP Capital Advisors, LLC (Washington, DC); former administrator of the HealthCare Financing Administration, now the Centers for Medicare and Medicaid Services; Benjamin B. Edmands, managing director, CCMP Capital Advisors, LLC (New York, NY); Kevin G. O'Brien, managing director, CCMP Capital Advisors, LLC (Dallas, TX); Andre Bourbonnais, vice president and head of principal investing, Canada Pension Plan Investment Board (Toronto, Ontario); and Jim Fasano, senior principal, Canada Pension Plan Investment Board (Toronto, Ontario).
“I know that a private hospital company can be successful by having a culture and strategy that balances the needs of its hospital communities with those of its sponsors,” said Dan Moen, chief executive officer, Legacy Hospital Partners, Inc.
Legacy's mission is to continuously improve the quality of healthcare services provided to its patients. This will be achieved by creating a collaborative culture that improves the health of patients by always focusing on their needs; fosters physician participation and involvement in hospital decision making; involves local leaders in the governance of each facility; and recognizes the value and contributions of employees.
Each Legacy hospital will have a local board of trustees to provide advice and consultation with respect to various issues. At least half of the trustees are expected to be physicians from the respective Legacy hospital medical staff while the balance are expected to be comprised of local community leaders.
“Legacy's local hospital boards will be responsible for overseeing healthcare within the community,” said James D. Shelton, chairman of the board, Legacy Hospital Partners, Inc. “We believe that the quality of patient care is enhanced when healthcare decisions are made locally.”
“By empowering each local hospital board of trustees to make important decisions, we are building collaboration and accomplishing our goals together,” Shelton commented.
Stephen Murray, president and chief executive officer, CCMP Capital, added, “Legacy's management team has more than 160 years of combined experience. They understand what physicians and employees do every day and as a result have a unique perspective that many in the industry do not have.”
“We all grew up in the industry, and it's important to us,” Shelton said. “We strive every day to build collaboration among the ranks