GTCR and Capella Healthcare Announce Long-Term Lease and Management Agreement for Muskogee Regional Medical Center
Chicago, April 4, 2007 – GTCR Golder Rauner LLC, one of the nation’s leading private equity firms, today announced that Capella Healthcare has completed a long-term lease agreement giving Capella management operational authority over Muskogee Regional Medical Center (MRMC), a century-old community hospital.
Capella’s other hospitals include Grandview Medical Center, Jasper, Tenn.; River Park Hospital, McMinnville, Tenn.; Southwestern Medical Center, Lawton, Okla.; and Capital Medical Center, Olympia, Wash.
Dan Slipkovich, chief executive officer of Capella, says this relationship fits perfectly within Capella’s specialty. “MRMC is a great match for our company. With similar sized hospitals facing similar challenges, we are confident we can make a positive impact on healthcare in Muskogee,” Slipkovich said.
The 40-year lease agreement outlines significant improvements to the hospital including a $28 million capital improvements plan which will be implemented over the next five years. “This is a great step for the 329-bed facility, which in recent years has developed a need for significant capital investment. We feel that operational and capital enhancements to MRMC will lead to better healthcare for everyone in the Muskogee area,” Slipkovich said.
“GTCR is excited to continue our support of Capella and their growth plan. MRMC is an excellent facility with a strong local presence,” added GTCR Principal Joe Nolan.
About 40,000 people currently reside in Muskogee. MRMC is the largest Capella owned hospital. “We have a vision for growth of health care in this community,” said Tom Anderson, president of Capella. “This transaction is a win-win for our patients, physicians and employees.” Capella will begin operations in Muskogee immediately. The hospital will remain named Muskogee Regional Medical Center.
About Capella Healthcare Based in Brentwood, Tennessee, Capella Healthcare is focused on acquiring and developing general acute care hospitals in non-urban areas within the United States. Capella Healthcare was founded in 2005 by former hospital company executives with over 100 combined years of management experience with over 200 hospitals in over 30 states. The company seeks to acquire and operate non-urban, general acute care hospitals and partners with communities that are growing or have service needs that are not currently being met. Capella’s mission is to provide quality healthcare services in the communities it serves in an affordable and easily accessible manner. The company partners with communities to build strong local healthcare systems. Capella is backed by GTCR Golder Rauner, LLC, one of the nation’s leading private equity firms.
About GTCR Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to acquire and build companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $8 billion of equity capital invested in a wide range of companies and industries. More information about GTCR can be found at www.gtcr.com .