Ardent, LHP to merge into second-largest private for-profit hospital chain

Nashville, Tennessee-based Ardent Health Services and LHP Hospital Group of Plano, Texas, have entered into a merger agreement, the companies announced Oct. 5.

The financial terms of the deal weren’t disclosed, but the companies’ joint statement said the merger would create a 19-hospital, six-state system with $3 billion in revenue, employing around 18,000  (including 475 employed physicians) and offering more than 3,200 patient beds.

“This is a transformative growth opportunity for Ardent that will provide significant benefits to each of the communities our companies serve,” Ardent President and CEO David T. Vandewater, said in a statement. “In addition to combining two organizations with similar operating philosophies and a strong focus on local partnerships and collaboration, this transaction dramatically enhances our scale, diversity and geographic reach—creating new synergies that better position us for future growth and investment in new and existing markets. We look forward to working closely with the outstanding employees, physicians, nurses and partners associated with LHP to advance our shared goals.”

The companies said the new system, once combined, would be the second largest privately-owned for-profit hospital chain in the U.S.

The press release said day-to-day operations at individual hospitals aren’t expected to change. For the LHP hospitals that are operated as joint ventures, such as Panama City, Florida’s Bay Medical Center, Ardent would assume LHP’s responsibilities in those partnerships.

Ardent expects the deal to close by early next year.