Universal Health Services Inc., a subsidiary of which owns the Valley Health System, has announced that it will buy a third party’s minority ownership interests in its six Southern Nevada hospitals for $445 million.
The King of Prussia, Pennsylvania-based company announced in a statement Monday it would make the aggregate cash payment, which includes purchase price and return of capital, to a “third party” for ownership interests ranging from 26.1 to 27.5 percent.
Valley Health System includes Centennial Hills Hospital Medical Center, Desert Springs Hospital Medical Center, Spring Valley Hospital Medical Center, Summerlin Hospital Medical Center, Valley Hospital Medical Center and the under-construction Henderson Hospital.
Henderson Hospital is expected to debut in the fourth quarter of this year and will anchor the health, retail and recreational project Union Village.
Community Health Systems Inc., based in Franklin, Tennessee, entered into an agreement Friday to sell its interests in Valley Health System LLC to Universal Health Services, according to a CHS quarterly report filed Tuesday with the U.S. Securities and Exchange Commission.
In the filing, CHS mentions only five hospitals, citing a 27.5 percent interest in four hospitals and a 26.1 percent interest in Summerlin Hospital.
The company’s filing confirms it will receive $445 million in cash from UHS.
“This transaction reflects our continued confidence in the performance of our hospitals in the Las Vegas market and, in particular, our enthusiasm for the opening of our newest hospital in Henderson, Nevada later this year,” Universal Health Services CEO Alan Miller said in the statement.
Universal Health Services’ net revenues at its acute care facilities increased 12 percent nationally during the first quarter of 2016, compared with the same time last year, according to the company’s SEC filings.
Shares of Universal Health Services lost 29 cents, or 0.22 percent, on Tuesday to close at $133.88.
Contact Pashtana Usufzy at email@example.com or 702-380-4563. Find @pashtana_u on Twitter.