Montgomery General Hospital

Montgomery General Hospital had concerns about its ability to be successful as a stand-alone facility. Ponder was engaged to provide its Strategic Options Assessment, and to manage a process to identify the best capital and strategic partner.

Category	Description
Profile	Olney, MD 150 beds Net revenues, $115 million; total assets, $115 million; long-term debt, $21 million Moody's: A3 (Negative Outlook) Fitch: BBB (Stable Outlook)
Situation	Debt capacity constrained relative to requirements of strategic plan Very favorable market demographics Competitors are financially stronger and affiliated with large healthcare systems Physician recruitment was a problem
Outcome	Ponder provided its Strategic Options Assessment MGH determined that it should merge with a large healthcare system Ponder managed the process to solicit proposals from qualified systems and negotiate terms and conditions of the merger MGH selected MedStar Health after receiving proposals from four regional and one national healthcare systems
Special Features	MGH received a board seat at MedStar MedStar agreed to fund the Strategic Plan and other capital projects MGH received branding benefits, improved physician recruitment and expense reduction opportunities

« Return to previous page