The Wesley Medical Center in Hattiesburg and the The River Region Health System in Vicksburg will become part of the third-largest investor-owned hospital system in
the country with the acquisition of their parent company, Quorum Health Group Inc. by Triad Hospitals Inc.
Triad Hospitals is purchasing Quorum for about $2.4 billion in cash, stock and the assumption of debt. The combined company that focuses on hospitals in small cities and
mid-sized markets will have 53 hospitals, 14 ambulatory surgery centers and 9,479 licensed beds.
Katherine Pittman, director of marketing, Wesley Medical Center, said no major changes are expected as a result of the acquisition.
“The transfer of ownership will have little immediate impact on the day-to-day operations of our hospital,” Pittman said. “Here at Wesley Medical Center we are going
strong and taking care of our patients. It is business as usual. We are focusing on the health care needs of our local community and delivering them well like we do every
Pittman said the acquisition of Quorum Health Group by Triad Hospitals is a good fit since both companies have similar corporate philosophies that put a high priority on
providing good local heath care systems. She said some cost savings might be possible from being a part of the combined larger company.
“There usually is strength in numbers,” she said.
Gray Swoope, president of the Area Development Partnership, said that everyone he has talked to is pleased about the development and believes it will help the medical
community grow in Hattiesburg.
“Certainly Triad is a well-known hospital group,” Swoope said. “It appears to be a good management group and will fit well in the Hattiesburg market. At Wesley, they
have a great group of physicians there who are recognized in their practices. Certainly having the right owner matched up with talented physicians should be a good
The medical community has a big impact on the area economy with an estimated 13,000 medical jobs in the area. Swoope said the good reputation of the hospital systems
is important to business and industry recruitment because of the importance of assuring employees access to good health care. He added that the strong medical
community also has a major positive impact on recruitment of retirees.
The River Region Health System in Vicksburg, also owned by Quorum Health Group, is also not expected to see major changes as a result of the merger.
“At this point we are operating in a business-as-usual mode,” said Debbie Brumitt, director of marketing and public relations for River Region Health System. “We are not
expecting any real impact for our particular health system.”
River Region Health System operates two hospitals in Vicksburg, the ParkView Regional Medical Center and Vicksburg Medical Center. The system with 64 physicians
also operates two clinics.
James D. Shelton, chairman and CEO of Triad, said that Quorum has an attractive group of assets that fit well with the company’s market strategy and offer excellent
opportunities going forward.
“We are excited about the opportunity to work with the Quorum facilities, their employees, and the communities they serve,” Shelton said. “We remain committed to
finding ways for physicians to be involved in the strategic direction of their hospitals and believe that strong physician relations will continue to be the cornerstone of our
James E. Dalton Jr., president and CEO of Quorum, said both Triad and Quorum view healthcare as a local business which, when supported by centralized resources,
offers exceptional service to physicians and patients.
Additionally, both are value-driven companies with similar corporate cultures, and when you combine those attributes with the complementary geographic locations of
operations at both companies, it makes for a good fit, Dalton said. “I’ve known Denny Shelton for years and respect him and the organization he and his senior
management have established at Triad.”
Under the terms of the acquisition agreement, Quorum shareholders will receive $3.50 in cash and 0.4107 shares of Triad common stock for each outstanding share of
Quorum stock. The transaction will be tax-free to Quorum shareholders with respect to the stock portion of the consideration. Based on Triad’s October 18, 2000 closing
price of $30.75, the transaction represents $16.13 per Quorum share. Triad shareholders will collectively own approximately 51%, and Quorum shareholders will
collectively own approximately 49% of the pro forma diluted shares outstanding.
The boards of directors of both Triad and Quorum unanimously approved the proposed transaction.
Contact MBJ staff writer Becky Gillette at email@example.com or (228) 872-3457.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info