HealthSouth and St. John Health System Announce Joint Venture to Operate Inpatient Rehabilitation Hospital in Broken Arrow, Oklahoma
Jun 29 15
HealthSouth Corporation and St. John Health System have formed a joint venture to own and operate a 40-bed inpatient physical rehabilitation hospital. Initially, the joint venture will own and operate The Bernsen Rehabilitation Center at St. John, a 24-bed inpatient rehabilitation unit currently located on the campus of the St. John Medical Center at 1923 South Utica Ave. in Tulsa, Oklahoma. The joint venture partners plan to begin construction on the new 40-bed, freestanding inpatient rehabilitation hospital in the third quarter of 2015. The new hospital will be located near the corner of West Albany Street and North Elm Place in Broken Arrow, Oklahoma and inpatient rehabilitation services at The Bernsen Rehabilitation Center will be relocated to the new hospital upon completion of construction. The approximately 49,000-square-foot hospital is expected to be completed in the fourth quarter of 2016 and will provide comprehensive, inpatient physical rehabilitation to patients who have experienced stroke, trauma, brain injury, complex orthopedic conditions as well as other major illnesses or injuries. The joint venture's operation of the inpatient rehabilitation unit and the new hospital is subject to regulatory approvals.
HealthSouth Corp. Joins Forces with CHI St. Vincent Hot Springs
Jun 27 15
HealthSouth Corp. and CHI St. Vincent Hot Springs have signed an agreement to jointly own and operate a 40-bed inpatient physical rehabilitation hospital in Hot Springs, Arkansas. Initially, the joint venture will own and operate the 20-bed inpatient rehabilitation unit currently located on the campus of CHI St. Vincent Hot Springs at 300 Werner Street in Hot Springs, Arkansas. The unit will be immediately expanded to 27 beds and will continue to serve patients with needs for intense physical rehabilitation. The unit will be named CHI St. Vincent Hot Springs Rehabilitation Hospital, an affiliate of HealthSouth. The joint venture partners expect to relocate the inpatient rehabilitation unit to a new 40-bed hospital located at 1636 Higdon Ferry Road in Hot Springs, Arkansas in the second quarter of 2016. The new hospital will provide inpatient physical rehabilitation to patients who have experienced stroke, trauma, brain injury, complex orthopedic conditions as well as other major illnesses or injuries. The establishment and relocation of the CHI St. Vincent Hot Springs Rehabilitation Hospital are subject to regulatory review and approval. In addition, the commencement of operations of the joint venture is subject to customary closing conditions. CHI St. Vincent pledges to build upon the foundation laid by the Sisters of Charity of Nazareth in Little Rock and the Sisters of Mercy in Hot Springs to go where health care is needed and establish a presence there.
HealthSouth Corporation Enters into Third Amendment to its Existing Third Amended and Restated Credit Agreement
Jun 25 15
On June 24, 2015, HealthSouth Corporation entered into the third amendment to its existing third amended and restated credit agreement, dated August 10, 2012, as supplemented or otherwise modified from time to time. The parties to the Credit Agreement, as amended, are the Company, Barclays Bank PLC, as administrative agent and collateral agent (the Agent), Citigroup Global Markets Inc., as syndication agent, Bank of America, N.A., Goldman Sachs Lending Partners LLC, and Morgan Stanley Senior Funding Inc., as co-documentation agents, and various other lenders from time to time. The Amendment made changes to the Credit Agreement to: provide that the leverage ratio financial covenant shall be calculated on a pro forma basis, allowing any such pro forma to include the effects of investments, acquisitions, mergers, and operational changes, such as historical income statement items and, to the extent projected in good faith and in a factually supportable manner, future synergies and cost savings; and increase the amount of specifically permitted capitalized lease obligations from $200 million to $350 million. The Company's obligations under the Credit Agreement are secured by the current and future personal property of the Company and its subsidiary guarantors. The Company's obligations are guaranteed by the subsidiary guarantors pursuant to the amended and restated collateral and guarantee agreement (the Collateral and Guarantee Agreement"), dated as of October 26, 2010, among the Agent, the Company, and its subsidiaries identified therein that was previously filed as Exhibit 10.3 to the Current Report on Form 8-K/A on November 23, 2010. The descriptions of the provisions of the Amendment, the Credit Agreement, and the Collateral and Guarantee Agreement are summary in nature and are qualified in their entirety by reference to the full and complete terms of the definitive agreements. Some of the lenders under the Credit Agreement and certain of their affiliates have engaged and in the future may engage in investment banking transactions, including securities offerings, and in general financing and commercial banking transactions with, and the provision of services to, the company and the company's affiliates in the ordinary course of business and otherwise for which they have received, and will in the future receive, customary fees.