Lifespan Expands Healthcare System with Acquisition of Saint Anne’s and Morton Hospitals in Massachusetts

Ropes & Gray advised Lifespan, a leading academic healthcare system based in Providence, Rhode Island, in its acquisition of Saint Anne’s Hospital in Fall River and Morton Hospital in Taunton, Massachusetts, as part of the Steward Health Care System bankruptcy. The deals closed on October 1.

Lifespan has purchased the land and the buildings used by the two hospitals and assumed hospital operations. The aggregate purchase price was $175 million. The transactions also included $100 million in seller financing to support the working capital needs at the facilities, as well as an agreement to receive modest support from the Commonwealth of Massachusetts for a limited time to support hospital operations.

Following approval by state and federal regulators, Saint Anne’s and Morton Hospital are now owned by Lifespan of Massachusetts, a non-profit organization which is a wholly owned affiliate of Lifespan. Both hospitals will benefit from the collaboration and system efficiencies including a shared electronic medical records system. More than 3,500 employees from Saint Anne’s and Morton will be integrated into the Lifespan system. These hospitals and affiliated physician practices currently receive more than 300,000 patient visits annually.

The Ropes & Gray team included health care partner Ben Wilson, business restructuring partner Cristi Schwarzman, real estate investments & transactions partner Rich Gordet, health care partners Deborah Gardner and Eve Brunts, real estate investments & transactions partners Peter Alpert and Walter McCabe, employment & benefits partner Megan Bisk, tax partners Franziska Hertel and Eric Behl-Remijan, IP transactions partner Erica Han, litigation & enforcement partner Rob Roberts, tax counsel Thomas Wechsler, Gil Ghatan and Sara Clevering, real estate investments & transactions counsel Effie Floyd, health care counsel Elizabeth Whitkin, IP transactions counsel Jimmy Chen, and employment & benefits principal Abby Meyer.