Platte Valley Medical Center (PVMC) in Brighton, CO has signed a letter of intent to merge with SCL Health in Denver. The transaction is notable, in large part, due to PVMC’s highly proactive consideration of strategic alternatives. The Company enjoys very strong financial characteristics and a modern hospital campus. Despite these attributes, its Board felt that an objective assessment of PVMC’s ability to remain independent in the new healthcare environment was important to its future success. The combination with SCL is intended to afford PVMC access to rapidly developing narrow networks in Colorado. SCL is the exclusive provider for Kaiser Permanente exchange products in the Colorado Front Range.
Juniper was engaged by the Board of Directors of PVMC to provide advice on their overall situation as well as to design and implement a process to assess PVMC’s independence. Providing the Board with a competitive basis of comparison and a range of partnership options was instrumental in achieving this outcome. Studies have indicated that roughly 85% of nonprofit hospital systems are assessing their ability to remain independent, as PVMC did. As the largest and most experienced investment banking firm focused entirely on this industry, Juniper was able to provide PVMC with independent and objective advice on the entirety of their circumstance. Juniper will continue to advise the Board through the completion of confirmatory due diligence, the signing of the definitive agreement and the acquisition of all requisite regulatory approvals.
Platte Valley Medical Center
PVMC is one of the few large remaining independent hospitals in Colorado. The nonprofit community health system is located in the rapidly-growing Denver suburb of Brighton, CO. In 2007, PVMC moved to a state-of-the-art facility on a new 50-acre campus. It has been named a Joint Commission Top Performing Hospital and recently received the Planetree Designation as one of the country’s most patient-centered hospitals. It is only the third hospital in the state of Colorado, and one of only 26 hospitals worldwide, to receive this designation.
SCL is $2.3 billion faith-based, nonprofit health network headquartered in Denver. The system operates eight hospitals, four safety net clinics, one children’s mental health center and more than 190 ambulatory service centers in three states: Colorado, Kansas and Montana. The network employs over 15,000 individuals, including more than 500 providers. In 2013, SCL contributed more than $223 million in community benefit.
For additional details, please refer to the press release.