February 12, 2021 – LifePoint Health Inc. (Brentwood, TN) is in talks to buy Ardent Health Services (Nashville, TN), a 30-hospital system that serves six states. LifePoint, which was acquired by Apollo Global Management Inc in 2018, has hospitals in 80 mainly rural markets.
According to The Wall St. Journal, the deal could value Ardent at more than $2 billion with debt. The WSJ reported that people familiar with the matter said that the closely held companies, which have been in on-and-off talks, may not reach an agreement.
Ardent operates acute-care hospitals and clinics in growing urban and suburban areas, with its biggest presence in Texas and Oklahoma.
Should a deal be reached, it would be a significant move by LifePoint to diversify into larger hospitals and clinics in densely populated areas after focusing on rural areas, which could bring risks. But a combination is also likely to bring cost savings, mainly in the form of improved purchasing power with suppliers and streamlined management, the WSJ reports.