CHICAGO (May 17, 2017) — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive advisor to Pekin Memorial Hospital (“Pekin”), its sponsor, Progressive Health Systems (“PHS” or the “System”), and other PHS affiliates, in a transfer of membership to UnityPoint Health-Peoria.
Pekin is a 107-bed hospital located in Pekin, Illinois, a community of 34,000 adjacent to Peoria. Considering the difficulties facing many small community hospitals, including regulatory changes, demographic trends and capital needs for value-based care, in 2015 PHS’ Board of Directors determined it would be valuable to conduct a comprehensive analysis of Pekin’s ability to continue meeting its mission as a provider of sufficient, high quality health care to its community. H2C was retained to evaluate PHS’ current position and its outlook as an independent healthcare provider.
After evaluating PHS’ financial and strategic position, as well as an array of alternatives available to the System, the consensus of the Board was that a partnership would be the optimal way to achieve Pekin’s goals. H2C conducted a full partnership selection process that highlighted the key strengths of Pekin Memorial Hospital, and how Pekin, despite being only 10 miles from Peoria, was a unique community that needed and could support an acute care provider. The H2C team assessed proposals from several interested parties, including both not-for-profit and for-profit health systems, and assisted the Board in identifying three finalists. After a thorough evaluation and interview process, the Pekin board unanimously selected UnityPoint – Peoria as the preferred partner.
Leaders of both organizations agreed that a partnership would have tremendous benefits for the community. The affiliation with Pekin strengthens UnityPoint – Peoria in the greater Peoria market and provides more choice for patients, providers and employees. And UnityPoint-Peoria made a significant commitment to invest in the Pekin community for the benefit of all. “We felt this was a win-win situation for both parties – most importantly, the Pekin community, and strategically positioned the combined system for future success,” said Victoria Poindexter, Principal at H2C. Email Victoria
H2C guided Pekin through due diligence and the negotiations of the Letter of Intent and the Definitive Agreement. The transaction was closed and state approval was granted within three months of the announcement of the Letter of Intent.
“H2C provided tremendous value by guiding our organization through this process,” said PHS CEO Bob Haley. “From the outset, H2C focused on our unique situation and the Board’s goals and objectives, then negotiated effectively to ensure those goals were met, making the ultimate decision an easier one for the Board.”
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