Orlando Health has officially announced that it has entered into a binding asset purchase agreement to acquire Steward Health Care’s East Central Florida operations. This acquisition includes Rockledge Regional Medical Center, Melbourne Regional Medical Center, Sebastian River Medical Center, and the Steward Medical Group practices. This strategic move strengthens Orlando Health’s presence in the region, expanding its network of healthcare services and facilities, and reinforcing its commitment to providing high-quality care to the communities it serves.
Orlando Health is a private, not-for-profit healthcare organization serving the Southeastern United States and Puerto Rico. Earlier this month, the system entered into a definitive agreement to purchase majority interest in Brookwood Baptist Healthcare, located in central Alabama. Steward Health Care is the country’s largest physician-led, minority-owned, integrated health care system. Orlando Health’s qualified bid has been designated as the stalking horse and, subject to the terms of the agreement, Orlando Health’s bid will be subject to higher or better qualified bids received by August 26th, 2024, at which time a bankruptcy court-approved auction may occur.
“We have seen repeatedly that when Orlando Health enters a new area, patient care improves, relationships with physicians and team members grow stronger and surrounding communities benefit,” said David Strong, president and CEO, Orlando Health. “We believe we can recreate these same results for patients, team members, physicians and the communities in which these hospitals are located.”
Orlando Health is a 3,487-bed system that includes 17 hospitals, 10 free-standing emergency rooms and 9 Hospital Care at Home programs, with additional facilities under development. In addition, the system also includes skilled nursing facilities, an in-patient behavioral health facility under the management of Acadia Healthcare, and more than 375 outpatient facilities that include physician clinics, imaging and laboratory services, wound care centers, home healthcare services in partnership with LHC Group, and urgent care centers in partnership with CareSpot Urgent Care. More than 4,950 physicians, representing more than 100 medical specialties and subspecialties have privileges across the Orlando Health system, which employs more than 29,000 team members and more than 1,500 physicians.
The transaction is subject to customary closing conditions, including Bankruptcy Court and regulatory approval, and is expected to close in the Q4 2024 should Orlando Health emerge as the winning buyer at the auction.
Orlando Health is represented by Hogan Lovells US LLP (Counsel) and Huron Transaction Advisory LLC (Healthcare Investment Banker).
