Goldman Sachs Backs Healthcare Industry Veterans to Form New Hospital Management Company

Business Wire,  Oct 24, 2005  

Tags: Goldman Sachs & Co., health care

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NEW YORK -- A Goldman Sachs led investing group announced today its commitment of $150 million to form Signature Hospital, LLC ("Signature"). The investing group includes healthcare industry veterans Charles Miller, Jim Dalton, and Dave Steffy. Signature also announced today the acquisition of three rural acute care hospitals in Texas and Arkansas from Triad Hospitals, Inc. (NYSE: TRI).

Signature will be based in Dallas and will own and operate acute care hospitals in rural markets with a focus on partnering with local constituents and physicians to provide the highest possible levels of care in its facilities.

"With the extensive experience of our management team and the financial resources of Goldman Sachs, we can bring tremendous value to the communities we serve. We will focus on partnering with physicians, employees and local hospital boards to assure that efficient and high levels of care are provided in Signature's hospitals," said Charles Miller, who will serve as Signature's Chief Executive Officer. Mr. Miller was a founder of Republic Health Corporation, and Champion Healthcare.

Jim Dalton will serve as the company's non executive Chairman. Mr. Dalton was previously the Chief Executive Officer of Quorum Health Group, Inc., an operator of acute care hospitals in which Goldman Sachs was an investor. Dave Steffy, who will serve as Vice Chairman of Signature, previously co-founded rural hospital operator Community Health Systems where he was Vice Chairman. Mr. Steffy was also an early investor and board member of Province Healthcare, a rural hospital operator which was recently acquired by Lifepoint Hospitals.

"Goldman Sachs Capital Partners' investment strategy is to partner with experienced managers with successful track records. We believe Charlie Miller, Jim Dalton and Dave Steffy will grow Signature to a leadership position in the industry," said Nat Zilkha, of Goldman Sachs Capital Partners.

Founded in 1869, Goldman Sachs is one of the oldest and largest investment banking firms. Goldman Sachs is also a global leader in private corporate equity and mezzanine investing. Established in 1991, the GS Capital Partners Funds are part of the firm's Principal Investment Area in the Merchant Banking Division. Goldman Sachs' Principal Investment Area has formed 11 investment vehicles aggregating $26 billion of capital to date. With $8.5 billion in committed capital, GS Capital Partners V is the current primary investment vehicle for Goldman Sachs to make privately negotiated equity investments.

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