Kaufman Hall Selected as M&A and Real Estate Advisor for Centura Health, a subsidiary of CommonSpirit Health, to Acquire a Five-Hospital Health System in Greater Salt Lake City, Utah Market
CHICAGO – May 8th, 2023 – Kaufman Hall & Associates, LLC (“Kaufman Hall”) was selected as the exclusive buy-side M&A and Real Estate advisor to Centura Health (“Centura”), a subsidiary of CommonSpirit Health (“CommonSpirit”, and collectively with Centura, the “Client”), related to the acquisition of a five-hospital regional health system located across the Greater Salt Lake City, Utah market (“Utah System”). The Utah System was owned and operated by Steward Health Care, which master leased all of the $1.2 billion in real estate assets from Medical Properties Trust (“MPT”), a publicly traded healthcare real estate investment trust (NYSE: MPW).
Kaufman Hall's Role
On behalf of the Client, Kaufman Hall’s dedicated real estate team engaged with MPT to restructure the Utah System’s lease with MPT. Driven by certain Client-driven goals and with a truncated timeline, Kaufman Hall engaged with MPT to negotiate the mutually agreeable lease, which balanced the Client’s short- and long-term strategic and financial objectives. Through Kaufman Hall’s efforts, the Client was able to meet its various goals related to capitalizing the initial acquisition, maintaining operational flexibility, limiting risk exposure, and securing future optionality.
About the Companies Involved
For more than 30 years, Kaufman Hall has provided independent, objective insights to assist clients in fulfilling their missions, achieving their goals, and tackling their toughest problems. Kaufman Hall’s real estate practice provides transaction advisory services to many of the nation’s top healthcare providers and developers/investors of healthcare real estate. Kaufman Hall’s focused model provides clients with an unmatched level of relevant experience & independent transaction analysis, structuring and execution capabilities. Kaufman Hall’s real estate practice was launched in 2021 through the acquisition of Healthcare Real Estate Capital (HRE Capital). Providing both consultative and transaction-oriented services, including asset/portfolio joint venture structuring, recapitalizations, dispositions and other related real estate advisory services, the real estate practice has been involved with more than $15 billion of sector-specific real estate transactions across the United States since 2008.
Centura Health / CommonSpirit Health
Centura is a regional non-profit healthcare provider and wholly owned subsidiary of CommonSpirit. With a team of over 25,000 individual caregivers, Centura operates 20 hospitals and more than 100 physician practices and clinics across Colorado and western Kansas. CommonSpirit is a Catholic, non-profit health system founded in 2019 through the merger of Dignity Health and Catholic Health Initiatives. Featuring 140 hospitals and over 1,000 care sites in 21 states, CommonSpirit has an investment grade credit rating (S&P: A-; Moody’s: Baa1; Fitch: A-) and is one of the largest non-profit health systems in the United States.