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Transactions: Hammes buys an ortho hospital near Evansville, Ind., for $88M

Region’s largest ortho group sold the 135,000 s.f. facility; Fairfield Advisors brokered the sale

By John B. Mugford

Hammes Partners is the new owner of the 135,000 square foot St. Vincent Orthopedic Hospital in Newburgh, Ind. The price for the facility operated by a partnership of Tri-State Orthopaedics and Ascension St. Vincent was $88 million. (Photo courtesy of Somerset CPAs and Advisors)

With pricing for healthcare facilities continuing to rise, physician groups are taking notice.

And while many are starting to look into selling, or “monetizing,” their real estate assets and re-investing the proceeds into their businesses in any number of ways, quite a few are taking the plunge and doing so.

Case in point can be found in Newburgh, outside of Evansville, where the region’s largest orthopedics group, locally based Tri-State Orthopaedics, which has multiple locations in the area, recently sold its flagship facility, the 48-bed, 135,000 square foot St. Vincent Orthopedic Hospital at 10388 Warrick Trail.

The price was $88 million, or $652 per square foot (PSF), for the facility with 10 operating rooms and which Tri-State Orthopaedics developed and opened in 2019. It operates the facility in partnership with Indianapolis-based Ascension St. Vincent, whose 376-bed St. Vincent Evansville Hospital is a few miles away. The St. Vincent system is part of the country’s second largest healthcare organization, St. Louis-based Ascension Health, which operates 151 hospitals.

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