Kaufman Hall Advises Doctors Hospital at Renaissance on Building an Integrated Regional Health System in Texas

SKOKIE, Ill. – September 7, 2016 – Doctors Hospital at Renaissance (DHR) Health System announced recently that it has signed an agreement to help Mission Regional Medical Center (MRMC) expand services in the community and bolster its ability to transition to a value-based care environment. The non-binding letter of intent is the first step in the two parties’ pursuit of a partnership, which they expect to complete by the end of the year. Kaufman Hall is serving as the exclusive financial advisor to DHR in this transaction process.

MRMC is a 297 bed not-for-profit, acute care hospital located in Mission, Texas. The hospital provides a wide range of acute care services to the surrounding community and is the only hospital in Mission. It is well situated to support population health management but lacks the resources to fund the investments necessary to transition to a value-based model of healthcare delivery.

As the largest health system in the region and one of the largest physician-owned systems in the country, DHR can provide MRMC with both the capital and operational expertise needed to succeed under a value-based care delivery model.

“This proposed model will leverage the service excellence our hospital is known for with the added clinical specialist support our community needs. The end-result is a non-profit community hospital that is bigger, better and stronger to meet the healthcare challenges of the future,” said MRMC CEO Javier Iruegas in a press release issued on August 22.

DHR views the potential partnership as an opportunity to build a new, fully integrated regional hospital network enabling it to provide higher value, lower cost care to the Rio Grande Valley area of Texas.

Discussions between DHR and MRMC began earlier this year.  Kaufman Hall assisted DHR in its supplemental response to the RFP, valuation, structuring of the transaction, and negotiation of the Letter of Intent. Kaufman Hall will continue to assist DHR on the negotiation and execution of definitive agreements.