March 22, 2016

Nashville Business Journal
by Alison Nash

Franklin-based Capella Healthcare Inc. and Brentwood-based RegionalCare Hospital Partners Inc. announced plans Tuesday to merge under the name RCCH Health Partners.

Terms of the deal, with is expected to close during the second quarter of this year, were not disclosed.

Combined, the company will have 18 hospital campuses in 12 states and $1.7 billion in revenue.

RegionalCare chairman and CEO Marty Rash will serve as the executive chairman of RCCH, and Capella vice chairman, president and CEO Michael Wiechart will lead RCCH as president and CEO.

“This is a strategic partnership that will enable both of our companies to enhance service and support to our existing community hospitals while creating a new entity that is even more attractive – and better positioned – for future partner communities,” Wiechart said in the release.

In July, Medical Properties Trust Inc. (NYSE: MPW) bought Capella for $900 million. In November, Apollo Global management signed an agreement to purchase RegionalCare. Terms of that deal were not disclosed.

In December, a PricewaterhouseCooper report predicted “merger mania” to be the top trend to watch in health care for 2016.