Kaufman Hall Advised HonorHealth in the Acquisition of Select Assets from Steward Health Care’s Arizona Portfolio

Transaction Overview

CHICAGO - October 10^TH, 2024 - HonorHealth has assumed full operational ownership of Steward Health Care's Arizona-based facilities, which includes three acute-care hospitals, an outpatient emergency center, and multiple outpatient physician practices. The three acute-care hospitals and the outpatient emergency center include:

• HonorHealth Mountain Vista Medical Center (formerly known as Mountain Vista Medical Center) in Mesa, AZ
• HonorHealth Tempe Medical Center (formerly known as Tempe St. Luke's Hospital) in Tempe, AZ
• HonorHealth Florence Medical Center (formerly known as Florence Hospital, a campus of Mountain Vista Medical Center) in Florence, AZ
• HonorHealth Mesa Emergency Center (formerly known as Steward Emergency Center) in Mesa, AZ

Kaufman Hall's Role

Kaufman Hall served as the exclusive transaction advisor to HonorHealth during Steward Health Care's Chapter 11 bankruptcy process and the sale of its Arizona portfolio.

In connection with HonorHealth's acquisition, Kaufman Hall also served as real estate advisor to HonorHealth in its master lease negotiation with Medical Properties Trust, Inc. (NYSE: MPW), which will remain the owner of the property.

HonorHealth entered into an interim management agreement on September 11th, 2024, and received approval from the bankruptcy court to close the transaction on October 3rd, 2024.

About the Companies Involved

Kaufman Hall

For more than 30 years, Kaufman Hall has provided independent, objective insights to assist clients in fulfilling their missions, achieving their goals, and tackling their toughest problems. Kaufman Hall's real estate practice provides transaction advisory services to many of the nation's top healthcare providers and developers/investors of healthcare real estate. Kaufman Hall's focused model provides clients with an unmatched level of relevant experience & independent transaction analysis, structuring and execution capabilities. Kaufman Hall's real estate practice was launched in 2021 through the acquisition of Healthcare Real Estate Capital (HRE Capital). Providing both consultative and transaction-oriented services, including asset/portfolio joint venture structuring, recapitalizations, dispositions and other related real estate advisory services, the real estate practice has been involved with more than $15 billion of sector-specific real estate transactions across the United States since 2008.

HonorHealth

HonorHealth is a non-profit health care system that serves the greater Phoenix, Arizona area. HonorHealth traces its roots to 1927 but was formed on September 13, 2013, when Scottsdale Healthcare Hospitals entered into an affiliation agreement with John C. Lincoln Health Network to form what is now known as HonorHealth. Today, HonorHealth employs approximately 14,000 people, partners with 3,500 providers across the greater Phoenix metro, and has a delivery system chassis of six acute care hospitals and additional primary, specialty and urgent care locations, ambulatory care centers, an accountable care organization, captive insurance company, food bank and charitable foundation.

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