Vanguard said it will maintain the current levels of charity care that the nonprofit Baptist Health System has been providing. It also will invest at least $200 million in capital projects over six years and maintain each of the existing Baptist hospitals for at least seven years.
Vanguard, formed in 1997 and based in Nashville, owns and operates 10 acute care hospitals and other facilities in Chicago, Phoenix and Orange County, CA. The company seeks acquisitions where its executives find opportunities to improve health-care systems, or where they can become partners with leading delivery systems in new urban markets.
Earl Cutler, chairman of Baptist Health System's board of directors, said Vanguard is committed to the same goals as Baptist, especially in capital investment and maintaining the hospitals. Baptist will appoint three of the seven members of the San Antonio systems board.
Vanguard will pay $248 million in cash and finance the rest through equity and debt securities. It plans to finance the cash portion with available funds, selling common stock to existing shareholders and borrowing under an expanded credit facility.
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