The impact of the merger between RegionalCare and Capella

Two privately owned leading healthcare service providers RegionalCare Hospital Partners Inc. and Capella Healthcare, Inc. announced plans to merge the two companies to create RCCH Health Partners.

The new company will have 18 hospital campuses in 12 states with more than 13,000 employees, 2,000 affiliated physicians and $1.7 billion in revenues.

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Capella currently operates ten acute-care and specialty hospital facilities in five states: Arkansas, Oklahoma, Oregon, South Carolina and Washington. RegionalCare owns and operates eight non-urban hospitals located in seven states including Alabama, Arizona,Connecticut, Iowa, Montana, Ohio and Texas.

"The merger of our two companies will benefit the communities and patients we jointly serve and better position us for the future," said RegionalCare CEO Marty Rash. "By creating a single, stronger organization, we'll have greater scale and stability as well as an expanded geographical reach. 

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“As we continue to grow the regional systems we have in place now and to partner with new communities, we'll continue our progress in meeting the triple aim of improving the experience of care for our patients, expanding access, and providing more efficient care."

Financing is being provided by Barclays, Royal Bank of Canada, Deutsche Bank, Credit Suisse, and UBS. In addition, senior unsecured notes are being privately placed with PSP Investments Credit USA LLC and other investors. Barclays served as financial advisor to RegionalCare. Akin Gump Strauss Hauer & Feld LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as RegionalCare's legal advisors. Kirkland & Ellis served as Capella's legal advisor.

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