Lifespan Expands Healthcare System with Final Agreement to Purchase Saint Anne’s and Morton Hospitals in Massachusetts

Ropes & Gray advised Lifespan, a leading healthcare system in Rhode Island, to finalize an agreement to purchase Saint Anne’s Hospital in Fall River and Morton Hospital in Taunton, Massachusetts, both owned by Steward Health Care System. The final agreement was announced on October 1.

Lifespan is purchasing the land and the buildings used by the two hospitals and will assume hospital operations. The purchase price is $175 million, which would be debt financed. In addition, Lifespan finalized 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 would be 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.