Health Midwest

Sale of Health Midwest Creates Substantial Foundation and Ensures Continued Hospital Operations

When this organization determined it was best to sell its business, Ponder designed and managed a process that resulted in a highly successful transaction – the largest "conversion" in history.

Category	Description
Organization	Located in Kansas City, Missouri 12 owned hospitals, 2,400 beds Net revenues: $948 million Total assets: $900 million Long-term debt: $475 million
Situation	System liquidity under pressure Negative operating margins Highly leveraged, no additional access to capital Aging facilities, need for capital expenditures Approached capital markets and rejected Mission in jeopardy
Outcome	Divested to financially strong entity Received long-term commitment to provide capital Created $700 million foundation All constituents pleased: physicians, employees, community

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