Kaufman Hall Advised HonorHealth in the Acquisition of Select Assets from Steward Health Care’s Arizona Portfolio
Transaction Overview
CHICAGO – October 14TH, 2024 – HonorHealth has assumed full operational ownership of Steward Health Care's Arizona-based facilities, which includes three acute-care hospitals, an outpatient emergency center, and multiple outpatient physician practices. The three acute-care hospitals and the outpatient emergency center include:
- HonorHealth Mountain Vista Medical Center (formerly known as Mountain Vista Medical Center) in Mesa, AZ
- HonorHealth Tempe Medical Center (formerly known as Tempe St. Luke’s Hospital) in Tempe, AZ
- HonorHealth Florence Medical Center (formerly known as Florence Hospital, a campus of Mountain Vista Medical Center) in Florence, AZ
- HonorHealth Mesa Emergency Center (formerly known as Steward Emergency Center) in Mesa, AZ
Kaufman Hall's Role
Kaufman Hall served as the exclusive transaction advisor to HonorHealth during Steward Health Care’s Chapter 11 bankruptcy process and the sale of its Arizona portfolio.
In connection with HonorHealth's acquisition, Kaufman Hall also served as real estate advisor to HonorHealth in its master lease negotiation with Medical Properties Trust, Inc. (NYSE: MPW), which will remain the owner of the property.
HonorHealth entered into an interim management agreement on September 11th, 2024, and received approval from the bankruptcy court to close the transaction on October 3rd, 2024.
About the Companies Involved
Kaufman Hall
Kaufman Hall provides management consulting solutions to help society's foundational institutions realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods, rigorous analytics, and industry-leading solutions into their strategic planning and financial management processes, with a focus on achieving their most challenging goals.
Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; revenue and operations improvement; treasury and capital markets management; mergers, acquisitions, partnerships, and joint ventures; and real estate.
HonorHealth
HonorHealth is a non-profit health care system that serves the greater Phoenix, Arizona area. HonorHealth traces its roots to 1927 but was formed on September 13, 2013, when Scottsdale Healthcare Hospitals entered into an affiliation agreement with John C. Lincoln Health Network to form what is now known as HonorHealth. Today, HonorHealth employs approximately 14,000 people, partners with 3,500 providers across the greater Phoenix metro, and has a delivery system chassis of six acute care hospitals and additional primary, specialty and urgent care locations, ambulatory care centers, an accountable care organization, captive insurance company, food bank and charitable foundation.