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

CVS Health is joining forces with UPS to test several different applications for drone delivery, including sending products directly to patients.

Cleveland Clinic and telehealth company American Well are launching a Cleveland-based joint venture telehealth company.

Humana and Microsoft announced a seven-year strategic partnership to build predictive solutions and intelligent automation to support Humana members.