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Lee Memorial Health System

Ponder's Independent Valuation Analysis and Fairness Opinion Supports the Acquisition of a Competing Hospital


Lee Memorial Health System sought an independent expert to determine if its proposed purchase price for two competing hospitals was reasonable, from a financial perspective. Ponder's valuation analysis and fairness opinion provided critical support for the Board of Directors' decision to acquire the hospital.

Category
Description
Organization
  • Fort Myers, FL
  • Integrated Delivery System
  • 2 hospitals; 1,000 beds
  • Net revenues of $600 million
Situation
  • Sought strategic opportunity to acquire two competing hospitals
  • Target facilities owned by HCA
Outcome
  • LMHS negotiated the acquisition of Gulf Coast Hospital and South West Florida Regional Medical Center from HCA
  • LMHS asked Ponder & Co. to provide an independent valuation of the hospitals and a Fairness Opinion
  • LMHS' Board of Directors authorized the acquisition based on Ponder & Co.'s work

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