Platte Valley Medical Center Joins SCL Health
Platte Valley Medical Center (PVMC) in Brighton, CO has joined SCL Health in Denver. This transaction is notable, in large part, due to PVMC’s highly proactive consideration of strategic alternatives. PVMC enjoys very strong financial characteristics and a modern hospital campus. Nevertheless, the Board felt that an objective assessment of PVMC’s ability to remain independent in the Denver metropolitan healthcare market was central to its future success. The combination with SCL will afford PVMC access to rapidly developing narrow networks in Colorado. SCL is the exclusive provider for Kaiser Permanente exchange products in the Colorado Front Range. Uniquely, through this process a new structure was created within SCL that will allow PVMC to continue providing care as a secular hospital.
Juniper was engaged by the Board of Directors of PVMC to provide advice on their overall circumstance as well as to design and implement a process to assess its independence. Providing the Board with a competitive basis of comparison and a range of partnership options was instrumental in PVMC’s ability to make a fully informed decision. Studies have indicated that approximately 85% of nonprofit hospital systems are assessing their ability to remain independent, as PVMC did. Following the strategic options assessment and selection of a partner, Juniper advised the Board through the completion of this new secular model within a faith-based organization. Partially due to the highly proactive orientation of the Board, the transaction is valued at multiples significantly above state, regional and national transaction averages.
Platte Valley Medical Center
PVMC is one of the few large remaining independent hospitals in Colorado. The nonprofit community health system is located in the rapidly-growing Denver suburb of Brighton, CO. In 2007, PVMC moved to a state-of-the-art facility on a new 50-acre campus. It has been named a Joint Commission Top Performing Hospital and recently received the Planetree Designation as one of the country’s most patient-centered hospitals. It is only the third hospital in the state of Colorado, and one of only 26 hospitals worldwide, to receive this designation.
SCL is $2.4 billion faith-based, nonprofit health network headquartered in Denver. The system operates nine hospitals, four safety-net clinics, one children’s mental health center and more than 190 ambulatory service centers in Colorado, Kansas and Montana. The network employs over 15,000 individuals, including more than 500 providers. In 2013, SCL contributed more than $223 million in community benefit.
For additional details, please refer to the press release.