St. Mary's Hospital in Waterbury, Conn., will form a joint venture with a Texas-based capital investment and consulting firm, report Healthcare Finance News and the Hartford Courant.
St. Mary's, which is part of the St. Mary's Health System, will enter into a shared governing structure with LHP Hospital Group, which will own a majority equity stake in the hospital. Although the institution will be converted to a for-profit, it will retain its Catholic heritage and local control.
The 347-bed hospital will use LHP's assets to eliminate debt, beef up its pension plan and add $75 million to its capital campaign. LHP will also assist in the updating of its information technology infrastructure.
"LHP is the ideal partner," said St. Mary's CEO Chad Wable. "Our joint venture maintains our mission and local control, while providing us with capital and expertise that will enable us to fully implement our strategic plan and continually improve our quality, services and financial position."
The deal is subject to various regulatory approvals.