RURAL HEALTHCARE GROUP ANNOUNCES ACQUISITION OF STEWARD MEDICAL GROUP AND STEWARD HEALTH CARE NETWORK TO PRESERVE AND EXPAND HIGH-QUALITY CARE

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Aug 12, 2024, 22:15 ET

NASHVILLE, Tenn., Aug. 12, 2024 /PRNewswire/ -- Rural Healthcare Group "RHG" announces its intention to purchase Steward Medical Group and Steward Health Care Network (hereinafter "Stewardship"). Stewardship is one of the largest primary care provider organizations in the country, with a significant presence in Massachusetts and nine other states. The transaction is subject to customary regulatory approval.

RHG is a primary care provider organization delivering healthcare to underserved communities in multiple states. RHG's mission is to improve the lives of people living in underserved areas through high-quality primary care.

"We are excited to bring our mission and approach to the state of Massachusetts, and the other states where Stewardship operates and supports primary care clinics," said Benson Sloan, CEO of RHG. "In many ways, RHG has directly preserved and restored primary care in our Tennessee and North Carolina markets as both independent providers and health systems have sought us out to ensure long-term continuity of care in their communities. A thriving primary care infrastructure is critical to supporting local hospitals and specialists, as primary care providers are instrumental in ensuring patients are directed to the appropriate facilities at the right time," Sloan continued.

RHG plans to make significant investments in Stewardship's infrastructure, which will allow providers to continue seeing patients in existing clinics across the Stewardship network. RHG's partnership will help keep healthcare local for patients, allowing them to continue to see providers that are familiar with their medical history. Furthermore, the transaction will separate Steward Medical Group and Steward Health Care Network from Steward's hospital system - transitioning clinics from health system-owned to independent is an area of expertise for RHG, and ultimately a benefit to patients.

"We are excited for this partnership with RHG. Working together, we will improve the patient and provider experience while enhancing the overall quality of care," said Dr. Joseph Weinstein, President of Steward Medical Group and Steward Health Care Network.

RHG is owned by Kinderhook Industries, LLC, a private investment firm that invests in mid-sized health care businesses that serve the nation's most vulnerable populations. Kinderhook's investments are focused on protecting access to high-quality healthcare in communities that are truly underserved.

Rural Healthcare Group is represented by Kirkland & Ellis LLP (Legal Counsel), Bass, Berry & Sims PLC (Regulatory Counsel) and Centerview Partners LLC (Investment Banker).

Stewardship is represented by Weil, Gotshal & Manges LLP (Restructuring Counsel), McDermott Will & Emery (Regulatory Counsel), Leerink Partners LLC (Healthcare Investment Banker), and AlixPartners, LLP (Financial Advisor).

About RHG

The mission of Rural Healthcare Group is to improve the lives of people in underserved communities by expanding healthcare access and empowering providers. RHG is headquartered in Nashville, Tennessee, and has 17 clinics across two states currently.

https://www.ruralhealthcaregroup.com/

About Steward Medical Group and Steward Health Care Network

Steward Medical Group and Steward Healthcare Network is a physician-led multispecialty organization offering primary care and specialty services. The company has more than 1,700 providers and operations in 11 states.

https://www.stewardmedicalgroup.org/

About Kinderhook Industries, LLC

Founded in 2003, Kinderhook Industries, LLC is a private investment firm that has raised $8.5 billion of committed capital. We have made in excess of 450 investments and follow-on acquisitions since inception. Kinderhook's investment philosophy is predicated on matching differentiated, growth-oriented investment opportunities with financial expertise and our proprietary network of operating partners. Our focus is on middle market businesses with defensible niche market positioning in the healthcare services, environmental/business services and automotive/light manufacturing sectors.

https://www.kinderhook.com/

SOURCE Rural Healthcare Group