IASIS Healthcare, a Franklin-based hospital operator will merge with Steward Health Care while simultaneously selling hospital real estate assets to a fund.

The combined company will own 36 hospitals in 10 states with managed care operations in three states. IASIS and Steward each own 18 hospitals.  The deal is expected to close in the third quarter.

As part of the transaction, Medical Properties Trust will buy the real estate associated with 10 acute care hospitals and one behavioral health hospital for $1.4 billion. 

Steward is a privately-owned hospital operator in Boston and will lease the facilities from MPT, a real estate investment trust.

IASIS is a nearly 20-year-old company that has an acute hospital division and a managed care division. It filed documents with the U.S. Securities and Exchange Commission to go public two years ago but the initial public offering didn’t advance. 

“IASIS’s mission has been to deliver high-quality, cost-effective healthcare to our patients and the communities we serve. We have accomplished this goal by investing in our growing hospitals and talented employees and by providing a broad and differentiated set of capabilities and assets to our high-growth, community-focused urban and suburban hospital markets,” said W. Carl Whitmer, president and CEO of Iasis in a statement.

“Steward’s innovative approach to reducing health care cost and improving quality of service will further this mission. It will be business as usual while all of us work toward a seamless merger of our operations.”

This story will be updated. Check www.tennessean.com for more.

Reach Holly Fletcher at hfletcher@tennessean.com or 615-259-8287 and on Twitter @hollyfletcher.

 

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