Kaufman Hall Advises East Texas Medical Center Regional Health on Strategic Partnership

SKOKIE, Ill. – September 27, 2017 – East Texas Medical Center Regional Health (ETMC) recently announced its intent to partner with Ardent Health Services and the University of Texas System (UT System) on the formation of a new health system to benefit East Texas.

Kaufman Hall is serving as the exclusive advisor to ETMC.

After building a strong network of clinical access points over several years throughout East Texas, ETMC faced the challenge of a rising expense base and had only recently gained access to the larger commercial payer networks in the market. Earlier this year, leadership began the search for a strategic partner to assist the organization in continuing its mission of improving the health and quality of life for East Texans.

As exclusive advisor to EMTC, Kaufman Hall provided deep knowledge of how to identify and engage the optimal partner. The firm’s M&A experts led the transaction process to ensure that the system’s long-term goals and objectives are achieved.

“After a deliberate and thoughtful process, our Board of Directors is pleased to select Ardent Health Services and the University of Texas System as the right partners for ETMC to take up our mission of care,” said Elmer G. Ellis, president and CEO of ETMC. “This acquisition will allow ETMC to grow and thrive in the East Texas region, with new partners who can best provide the necessary clinical expertise, operational proficiency, employee development and financial resources to deliver the best care possible for our patients.”

Ardent Health Services will operate this newly formed 10-hospital health system, providing capital and resources to grow services. The partnership marks Ardent’s eighth joint venture with a leading not-for-profit health system and its second this year.

The UT System will contribute its Tyler-based UT Health Northeast hospital and 12 physician clinic operations. The partnership will invest $150 million for improvements over five years and provide other resources to support the operation of this newly created health system. It will be an affiliate of the world-renowned University of Texas System, one of the largest academic and health systems in the country.

Governance will be shared through a newly formed board of directors, which will include local physicians. Proceeds from the transaction will be used to create a local foundation to further the health and wellness of East Texans. The transaction is expected to close following the completion of due diligence and required regulatory approvals.


About Kaufman Hall

Kaufman Hall provides management consulting and software to help organizations realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods into their strategic planning and financial management processes, and quantify the financial impact of their plans and strategic decisions to consistently achieve their goals.

Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; cost transformation; treasury and capital markets management; and mergers, acquisitions, partnerships, and joint ventures.