Warburg Pincus goes for coffee


The private equity firm: Warburg Pincus

The hospital system: Coffee Health Group

The price: $325 million

The scoop: Investment banking giant Warburg Pincus funded the startup of Brentwood, Tenn.-based RegionalCare Hospital Partners with $325 million in 2009. It's since had its share of ups and downs in the world of hospital M&A. It lost out earlier this year on a bid to purchase Landmark Medical Center in Rhode Island, particularly after nursing staff threatened to strike over the deal. The winner was, ironically, Steward Health Care/Cerberus.

However, RegionalCare has been more successful with its 2010 acquisition of Alabama's Coffee Health Group, a two-hospital not-for-profit system that had been struggling financially for years. RegionalCare's deep pockets have been welcomed: It paid off Coffee's $140 million in debt, and will spend $270 million to build a new facility to mostly replace Eliza Coffee Memorial Hospital in Florence, Ala.

Suggested Articles

Presidential candidate Kamala Harris wants to get rid of the tax break drug companies get for DTC ads

Healthcare software company Phreesia closed its first day of trading as a public company Thursday about 40% above its set price.

Growing the biosimilar market could lead to significant healthcare cost savings, according to a new report.