Issue link: https://beckershealthcare.uberflip.com/i/759111
26 CFO / FINANCE Blackstone to Acquire TeamHealth in $6B Deal By Emily Rappleye T he board of TeamHealth, a Knoxville, Tenn.-based phy- sician services organization, unanimously approved an agreement to be acquired by Blackstone — a private equity, investment banking and asset management corpora- tion — for $6.1 billion, including debt and other factors. The company alone will sell for $3.2 billion, The Wall Street Journal reports. "Blackstone is one of the world's leading investment firms and will be a tremendous capital partner to help accel- erate TeamHealth's growth priorities and fund our long- term initiatives as we continue to execute on our strategic priorities," Lynn Massingale, MD, co-founder and execu- tive chairman of TeamHealth, said in a press release. "As a prior owner of TeamHealth, Blackstone knows TeamHealth and the U.S. healthcare industry well and will work with us to create value for all our stakeholders over the long- term. We are very proud of our team and believe this in- vestment is a testament to the underlying strength of the organization and the thousands of skilled and dedicated clinicians who choose to be part of TeamHealth." Blackstone and its co-investors will acquire the outstand- ing shares of the TeamHealth's common stock for $43.50 per share — which tops the closing share price on Oct. 3 by about 33 percent. Oct. 3 was the last trading day before news reports broke that TeamHealth was consid- ering a sale. The transaction still requires TeamHealth stockholder approval, regulatory approval and other closing conditions. The firms expect the deal to close in the first quarter of 2017, upon which TeamHealth will be- come a private company and its stocks will no longer be traded on the New York Stock Exchange. TeamHealth will hold a meeting for its stockholders to vote on the acquisition and the agreement, which includes a "go-shop" period. This 40-day period allows TeamHealth and its board of directors to consider and even enter ne- gotiations with alternate parties after the definitive agree- ment. The company has said it will not provide details about this process until all decisions have been made in regards to any other proposals that result from it. n Order online $29.95 ASDManagement.com or Amazon Improve your bottom line. Whether you're new to ASCs or a 30-year veteran. Relevant. Proven. Priceless. Strategies "Touches on the qualitative stuff that makes running a center so challenging." Get New Ascension Records $423M Net Gain on Higher Patient Volume: 5 Things to Know By Ayla Ellison S t. Louis-based Ascension reported $5.6 billion in revenue in the first quarter of fiscal year 2017, up 3.4 percent from revenue of $5.2 billion in the same period of the year prior, according to recently released unaudited financial documents. Here are five things to know about Ascension's most recent financial results. 1. e revenue boost was partially attributable to an increase in patient volume. Ascension said inpatient admissions, inpatient surgeries and emergency room visits were up 4.3 per- cent, 3 percent and 9.8 percent, respectively, in the first quarter of FY 2017 compared to the same quarter of 2016. 2. Ascension said the increase in patient vol- ume was primarily attributable to its acquisi- tion of Glendale, Wis.-based Wheaton Fran- ciscan Healthcare in March. 3. Ascension saw expenses rise 3.8 percent year over year to $5.5 billion. is increase was due, in part, to higher costs related to sal- aries, wages and employee benefits. 4. Ascension ended the first quarter of FY 2017 with an operating margin of 3.1 percent. at's up compared to an operation margin of 2.2 percent in the same period of the year prior. 5. e system recorded net income of $423.1 million in the first quarter of FY 2017, com- pared to a net loss $604.8 million in the same quarter of 2016. n