Gateway Health System and Triad Hospitals Enter Into Joint Venture
CHICAGO (February 8, 2006) — McDermott Will & Emery represented Gateway Health System, Inc. (GHS) in connection with its $200 million whole-hospital joint venture with Triad Hospitals, Inc., the third largest publicly traded hospital company in the country. The joint venture, which closed on February 1, 2006, resulted in an 80 percent ownership by Triad and 20 percent ownership by Gateway. The joint venture will construct and operate a 270-bed, $200 million replacement hospital. In addition to its equity interest in the joint venture, GHS received approximately $25 million in cash at closing from Triad allowing it to pay off $44 million in tax-exempt bond debt.
The McDermott team representing GHS included partners Ralph DeJong, Tom Hefty, Lisa Kaderabek, Stefan Meisner and Kerrin Slattery, and associates Phil Castrogiovanni and Sandra DiVarco. McDermott advised on all corporate-related issues involved in the transaction, as well as issues concerning tax-exempt status, employee benefits, real estate, financing and Hart-Scott-Rodino matters.
GHS, originally Memorial Hospital, opened in 1954 with 105 beds. Currently it operates 206 beds, 150 active physicians and services ranging from heart and cancer care to vascular and orthopedics. In addition to accreditation by the Joint Commission on Accreditation of Healthcare Organizations, GHS touts other such designations in the areas of vascular lab, mammography, clinical lab, diabetes education, and home care and hospice. For more information, visit the www.ghsystem.com.
Triad, through its affiliates, owns and manages 50 hospitals and 10 ambulatory surgery centers in 16 states with approximately 9,050 licensed beds. In addition Triad provides consulting, education, intensive resources and management services to hospitals and health systems throughout the United States. For more information, visit www.triadhospitals.com.
With an over 50-year history of serving the health care industry, McDermott has one of the United States' largest and most prestigious health law departments. Chambers USA: America's Leading Lawyers For Business, 2005 Client's Guide ranked McDermott's health care practice in the top tier of all health practices in the United States.
