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TWST: What is Integrated Healthcare Holdings?
Mr. Anderson: We are a newly formed company that was created for the
purpose of acquiring and operating primarily acute care healthcare
assets, meaning acute care hospitals and ancillary services. We were
formed in late 2003 and became involved in an acquisition of assets that
were being divested by Tenet Healthcare System. The announcement of that
divestiture was made in January 2004. We placed an early bid on four of
their assets ' four hospitals in Orange County, California ' and
ultimately closed that deal on March 8, 2005. We were partnered with a
physician investment group in Orange County, and the design of our
company was to provide an opportunity for physicians who were
practitioners in the hospitals to have an opportunity to invest in the
hospitals where they work and to do so in a legally compliant structure.
As you may or may not know, the healthcare space is very heavily
regulated, especially with regard to the opportunity of physicians to
invest in hospitals, and that is the purpose for which we formed a
public company ' so that physicians could have the opportunity to invest
and to provide a legal mechanism for doing so. When we acquired these
four hospitals, they were in a state of failing performance, meaning
they were losing money, and our plan was to turn them around. We put in
place a turnaround plan for this major component of health care in
Orange County, California. The plan is not something that can be done
overnight. It is a significant project and has many components. To date,
we think we are well on our way to the turnaround that we envisioned
when we closed the deal on March 8. TWST: Is this a valid platform that you can replicate in other
geographies with other opportunities?
Mr. Anderson: Yes. We do have plans where we would, at the proper time,
acquire additional acute care assets, both in California and outside of
California.
Tickers included in this excerpt: IHCH
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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