Nobilis Health Corp. announced today its intention to jointly own and oversee the former Freedom Pain Hospital located in Scottsdale, Arizona, significantly expanding its presence in the American Southwest.
Investing approximately $3.2 million, the purchase involves Nobilis acquiring a 60 percent stake and management control of the joint venture entity, formed specifically to own and operate the successor hospital. As well as managing the new facility’s corporate affairs, Nobilis will provide hands-on management services on an ongoing basis pursuant to a management agreement executed as part of the transaction.
"Consistent with our Houston and Dallas businesses, we see an opportunity to better serve the Phoenix market by adding inpatient capacity to complement our existing (ambulatory surgery centers) in that market," Nobilis Chairman Harry Fleming said.
The transaction, contingent on successful licensing transfer in compliance with Arizona Health Services regulations, is expected to close in November. Upon closing, the joint venture entity will have approximately $4.2 million to work with, plus a $4.5 million line of credit extended by Nobilis for working capital on an as-needed basis.
"An inpatient option in Scottsdale expands our ability to work with surgeons in the greater Scottsdale market,” Nobilis CEO Chris Lloyd said. “Our hospital's ability to perform more complex surgeries should allow Nobilis to realize additional case volume from existing relationships as well as develop relationships with new physicians and specialties."
Direct-to-patient marketer Nobilis, headquartered in Houston, owns and manages three surgical hospitals and five ASCs. It partners with an additional 28 facilities nationwide.
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