The parent company of Sharon Hospital says it is merging with another for-profit hospital operator, a move that will create a seven hospital system spanning six states.
Essent Healthcare and RegionalCare Hospital Partners Inc. both based in Tennessee announced the merger Tuesday.
Esssent Healthcare, which owns Sharon Hospital, is a portfolio company of Vestar Capital Partners and Cressey & Company and operates three hospitals in Connecticut Pennsylvania and Texas.
RegionalCare, which will be the surviving entity, is a portfolio company of Warburg Pincus and operates four hospitals in Alabama, Iowa and Ohio.
Terms of the deal were not disclosed.
Officials said day-to-day operations at Sharon Hospital will be unaffected by the merger and that RegionalCare expects to continue to maintain the commitment to physician recruiting and retention and make appropriate capital investments at the individual hospitals.
In the merged organization, RegionalCare will retain all employees in good standing and will keep the hospital management teams in place. Mr. Rash will continue to serve as RegionalCare’s Chairman and CEO.
