Triad seeks cure for growing costs

Source: Technology Digital

Date :5/31/2007 12:19:21 PM

Health care giant in Triad Hosiptals, Inc merger talks that would take the public company private.

By David Weldon

Coupled with ever-rising costs for providing basic services, many health care companies are also faced with a growing number of uninsured patients, and growing bad debt among many of those uninsured. The result is further blood-letting from an already financially weakened industry. One of the nation’s largest health care companies is hoping to find a cure for that ailment, as it moves from a public to private company.

Triad Hospitals, Inc., in Plano, Texas, recently announced that is has entered into a definitive merger agreement with CCMP Capital Advisors and GS Capital Partners. The deal is worth a reported $4.7 billion. Under the merger arrangement, CCMP and GSCP would acquire all outstanding shares of Triad, at $50.25 per share, and also assume approximately $1.7 billion of debt.

According to Patricia Ball, vice president for marketing and public affairs at Triad, the company began seeking new financial investment partners in June, 2006, in order to better maintain its level of health care services in the face of rising operational costs. The merger with CCMP and GSCP would enable Triad to “sustain, and grow, our vision to continuously improve the quality of healthcare services provided to the communities we serve.” Ball said she expects other health care providers will watch the deal closely, as they struggle to maintain quality of care levels in their markets.

Founded in 1999, Triad is a leader in joint venture strategy with not for profit hospitals. The company’s operating strategy includes working with local community leaders and key employees in critical decision-making.

The third largest hospital company in the United States, Triad currently operates 54 hospitals and 13 ambulatory surgery centers in 17 states, with approximately 9,855 licensed beds. Through its QHR subsidiary, Triad also provides consulting, education, intensive resources and management services to more than 180 hospitals and health care systems throughout the country. Triad has approximately 43,000 employees, and the company reported net assets of $5.4 billion and net revenues of $4.75 billion for 2005.