BIRMINGHAM, AL—Medical Properties Trust Inc. (MPT) said Friday it had completed its previously announced acquisition of 10 acute care hospitals and one behavioral health facility from IASIS Healthcare. The sale was contingent upon the completion of the merger between IASIS and Steward Health Care System LLC, which also closed on Friday.
With its acquisition of IASIS, Boston-based Steward becomes the largest private hospital operator in the US. MPT has also acquired $100 million in minority preferred interests of Steward.
Joining the Steward system are four facilities in Arizona; one each in Arkansas, Colorado and Lousiana; six in Texas; and five in Utah. The sale to MPT, which comprises a $700-million sale-leaseback and a $700-million mortgage investment, includes the Arkansas facility, three of the Arizona facilities, three of the Texas facilities and four of the five Utah properties.
MPT's first investment in Steward of $1.25 billion, announced in September 2016 and completed the following month, included nine acute care hospitals centered around Boston, one of the world's most competitive healthcare markets. “Steward has achieved remarkable success in growing its company, starting with the turnaround of a struggling not-for-profit hospital system in eastern Massachusetts,” Edward K. Aldag Jr., MPT's chairman, president and CEO, said this past May. “As Steward has implemented its strategic plan to develop an integrated network with various access points along the healthcare continuum, the results have been improved outcomes and reduced costs.”
The Steward deal which closed this past Friday continues MPT's growth of assets by approximately 31% annually since 2013, “compared to 15% for our healthcare REIT peers,” Aldag said this past May. “With this transaction, we eclipse our previous record '16 acquisition total.”
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
