Boone County leaders say they’re optimistic about future with Ardent Health

COLUMBIA, Mo. (KMIZ)

Boone County's Northern District commissioner said Friday that she remains optimistic about the publicly traded company that plans to buy Boone Health based on its track record.

The Boone County Commission approved the sale on Thursday of Boone Health to Ardent Health Company, a private equity-controlled company.

Tennessee-based Ardent operates hospitals and other medical facilities across the country. The company announced Thursday it reached an agreement to acquire Boone Health for $47 million.

According to an article from Private Equity Stakeholder Project, Ardent operates 30 immediate care hospitals and more than 280 sites of care across six states: Texas, Oklahoma, New Mexico, New Jersey, Idaho and Kansas. The company also works with more than 2,000 health care providers across those states.

Ardent has expanded through partnerships with nonprofit health systems and medical centers. Through the joint ventures, also known as partnerships, Ardent holds the majority ownership stake, sharing responsibilities with its owners, according to the article.

The company's main shareholder is Equity Group Investments, which controls 54% of shares.

According to Carta, private equity is a type of investment in which firms invest money in companies in hopes of increasing their value and earning a return. This can include buying ownership stakes, making changes to business operations or expanding a company's reach.

Equity Group Investments partnered with health care real estate investment trust Ventas to acquire Ardent in 2015. As part of the arrangement, Ventas acquired Ardent's real estate, while Equity Group Investments and other investors acquired the company's hospital operations.

Thompson said she brought up concerns about a private equity firm owning the hospital to the Boone Health Board of Trustees members at Thursday's Boone County Commission meeting. She said there is always a worry when taking a chance on a promise to improve the hospital, but Ardent's record makes it easier to trust them, she said.

"Whenever you deal with anybody, you're always taking a gamble that somebody's going to do what they tell you," Thompson said. "But their pattern of practice has shown that Ardent is not that kind of, you know, strip the meat off the bones and kick the carcass to the curb; that's not their way of doing business; they want to be in a community and providing that health care."

Board of Trustees Vice Chair Gary Thompson said during the commission meeting that the board visited Ardent-owned properties. One hospital they visited was bought by Ardent 22 years ago.

"Across their history at working in the hospital system, they have invested in communities and their goal is to create an even more vibrant hospital system," Commissioner Janet Thompson said. "The one that they visited that Mr. Thompson was talking about has expanded dramatically in that county."

In a statement to ABC 17 News, Ardent said it wants residents of the community to know it is committed to improving the hospital.

"It's important for people to understand that Ardent has been operating hospitals for decades in communities a lot like Columbia," said a spokesperson for Ardent. "We have a strong track record of investing in those hospitals, improving quality over time, and growing services and access to care."

Ardent has committed $200 million over 10 years for capital improvements, including helping the hospital upgrade facilities, equipment and technology, while giving financial support to grow and expand patient care.

Commissioner Thompson said that million-dollar commitment from Ardent further solidifies its commitment to Boone Health.

"If you're a business person, you don't invest $200 million and then decide to pull out," Thompson said. "That, to me, is a pretty good indicator of their commitment to this community and that's, you know, they're also making sure that there's no debt for our community to absorb in any way."

Ardent's statement said that the company has invested over $2 billion since 2003 at its hospitals, and the company plans to take that same approach with Boone Health through specific commitments outlined in the agreement:

• $200 million capital commitment over 10 years to fund equipment, facility renovations, new facilities and services, physician recruitment and information systems, with emergency department expansion and operating room modernization among the near-term priorities.
• Commitment to maintain Boone Health's essential hospital services with a focus on strengthening its role as a regional referral center.
• Continued employment for all active Boone Health employees, physicians and advanced practice providers in good standing.
• Establishment of a local advisory board for Boone Hospital Center, ensuring Columbia and Mid-Missouri stakeholders have an ongoing role in the hospital's operations.
• Continuation of Boone Hospital’s existing charity care policy.

Boone Health CEO Brady Dubois said the money from Ardent will help make improvements to the hospital, something he said they could not do if they did not make the sale. He also said that layoffs would have been imminent without the deal.

Boone Health will keep its name under the agreement, and Ardent said in a press release on Thursday that it plans to keep the current employees.

The transaction will have a transitional period until the deal closes in spring 2027. Until then, Boone Health and Ardent will continue operating separately, with no immediate changes to patient care, employee roles or day-to-day operations.