NASHVILLE, Tenn. - W. Hudson Connery, Jr., the former chief operating officer for HealthTrust, has teamed with Thoma Cressey Equity Partners to launch Essent Healthcare, a new hospital company based in Nashville, Connery announced today.
The creation of Essent marks Connery's return to the acquisition and management of community hospitals. As the chief operating officer of HealthTrust from 1991 to 1995, Connery oversaw the management of more than 110 hospitals that generated more than $4 billion in revenues annually. Eleven of those hospitals were listed among the nation's Top 100 hospitals by Modern Healthcare in 1995.
"This is a time of opportunity for those of us who know hospitals, how they work and their value to a community," Connery said.
"Fundamentally, healthcare management expertise, demonstrated performance and access to capital are prerequisites necessary for hospitals to survive and prosper today. Essent delivers these requirements."
Essential Partners
Essent was formed through a partnership between Connery and Thoma Cressey, a Chicago-based company that is one of the most experienced private equity firms in the United States.
"Hud Connery brings Essent a mix of development and operational experience that is unique among the companies acquiring and managing hospitals today," said Thoma Cressey co-founder Bryan C. Cressey.
"He knows how to find essential hospitals, and how to run them so that they serve their community and grow with it. With today's healthcare environment, we have no doubt Hud is going to have great, long-term success with Essent."
Thoma Cressey has made a $50 million equity commitment to Essent, Cressey confirmed.
Thoma Cressey has investments in a number of companies, including several in the health care industry such as Select Medical Corporation, which operates outpatient rehabilitation clinics and long-term acute care hospitals and Assistive Technology Group, Inc., which provides equipment and supplies to help the chronically ill or disabled persons gain a measure of independence and productivity.
The most recent addition to the Essent team is Chief Financial Officer Michael E. Davis who was most recently the senior vice president and chief financial officer for Behavioral Healthcare Corporation (BHC). Davis brings Essent experience in hospital and healthcare operations, acquisitions and in managing debt financing.
The lessons learned by Connery, Davis and Thoma Cressey during the past 20 years form the foundation of Essent's vision and approach.
Essential Hospitals
"Essent" is a play on the word "essential" and reflects the philosophy of this new company and how it will grow. With more than 5,000 hospitals in the U.S. facing accelerating pressures on payment rates and continuing efforts to minimize hospital admissions and lengths of stay, only the essential hospitals will survive and prosper.
Essent will work exclusively with hospitals that are fundamental to a community's healthcare, Connery said.
Among of the lessons learned by Essent's leaders is the commitment to deliberate, sustainable growth.
"We will only make the strongest acquisitions at a steady pace," Connery said.
"With Thoma Cressey as our partner, we have the freedom and the patience and the wherewithal to invest only in hospitals today that we believe are the best for the long term."
Essent is headquartered at 1913 21st Avenue South in Nashville, Tennessee, 37212. For more information, contact David Jarrard at Jarrard-Ingram Public Relations at 615/843-8430.
### |
