Source: Forbes Middle East
UAE’s healthcare solutions provider, Pure Health, has agreed to acquire a minority equity investment in Ardent Health Services (Ardent), a US healthcare provider valued at $500 million.
Ardent acquisition
As per the agreement, Pure Health, a subsidiary of Alpha Dhabi Holding (ADH), would attain a minority equity investment by purchasing an interest in Ardent from Equity Group Investments (EGI), a Chicago-based private investment firm and majority owner of Ardent, the company said in a statement released Sunday.
Pure Health would receive board observer rights but would not have a seat on Ardent’s board of directors.
The investment does not include plans for either the expansion of Ardent’s physical footprint or collaboration between Ardent and Pure Health in the delivery of care.
The statement added that the deal is subject to customary closing conditions and will be finalized after receipt of all necessary US regulatory approvals.
Key quotes
“We look forward to developing a productive relationship with Pure Health as they continue to explore the various dynamics of the US healthcare system,” said Sam Zell, founder and chairman of EGI.
“Ardent has a strong track record of delivering outstanding services across the United States, and we look forward to gaining additional knowledge to support our north star of advancing the science of longevity and unlocking time for humanity,” said Farhan Malik, CEO of Pure Health.
Largest healthcare platform
Earlier in January, Investment firm ADQ has entered into an agreement to consolidate several companies within healthcare solutions provider Pure Health to create the largest healthcare platform in the UAE as demand for services continues to rise. Abu Dhabi Health Services (SEHA) and the National Health Insurance (Daman) will merge with Pure Health. Tamouh Healthcare, Yas Clinic Group, and Abu Dhabi Stem Cell Center will also become part of the entity.
Shaista Asif, Pure Health’s COO, ranked 8th in the Forbes Middle East list of Top 50 Healthcare Leaders 2022.
Big number
$5.12 billion. This is the 2021 revenues of ADH, a subsidiary of Abu Dhabi’s International Holding Company. The 400% increase reported is driven by solid and consistent business activities in its healthcare, construction, and hospitality portfolio.
Key background
Ardent is the fourth largest privately held acute care hospital operator in the US, with 30 hospitals and more than 200 sites of care across six states, and approximately 26,000 employees. It is based in Nashville, Tennessee and is owned by current and former members of Ardent’s management team, EGI, which has a current portfolio including investments in transportation and logistics, health care, manufacturing, agribusiness, energy, retail, waste and infrastructure, and real estate.
With a focus on evidence-based practices to improve quality care and patient outcomes, four Ardent hospitals were named to Leapfrog’s Top Hospitals in 2021, and eight Ardent hospitals received a Leapfrog Hospital Safety Grade of A for Spring 2022.
Meanwhile, Pure Health is an integrated healthcare solutions platform with a diversified portfolio of over 25 hospitals and more than 100 clinics offering 200+ specialties covering services from tertiary care to primary care. Its health insurance covers over 2.5 million members. The company has over 25,000 employees and has around 50 million annual clinical encounters.