Victory Health Services

Victory Health Services' inability to access external capital lead to Ponder's engagement to provide its Strategic Options Assessment. Based on that study, the board decided to pursue a sale of the facilities, and engaged Ponder to manage the transaction.

Category	Description
Profile	Based in Waukegan, Illinois Two hospital system with 697 licensed beds A continuing care retirement center (CCRC) with 320 units Net revenues, $160 million; total assets, $95 million; long-term debt, $40 million
Situation	Debt carried BBB- rating No access to capital In process of consolidating primary care services into one hospital Substantial ongoing operating losses Difficult market - low growth in primary service area Needed a capital partner
Outcome	Sale to for-profit hospital services company Buyer commitment to provide $60M capital investment Sale of the CCRC to separate not-for-profit buyer Maintenance of mission Net proceeds from sale used to create a $50 million community foundation
Special Features	Retirement of bonds Active involvement of Attorney General in setup of the community foundation

« Return to previous page