St. Luke’s Health System Has Completed the Court-Mandated Divestiture of Saltzer Medical Group
May 17, 2017
St. Luke’s Health System (“SLHS”) has completed the Court-mandated divestiture of the Saltzer Medical Group (“SMG”). Change Healthcare, a newly formed subsidiary of McKesson (NYSE:MCK), acquired the practice assets and will provide practice management services to SMG. SLHS’s purchase of SMG in late 2012 resulted in a challenge by the FTC and Idaho Attorney General that was successfully upheld in a U.S. District Court ruling and led to the Court Order requiring the divestiture of SMG by SLHS. The transaction satisfies the requirements of the Court Order.
Cain Brothers was appointed as the Divestiture Trustee by the U.S. District Court to manage the sale process of the SMG business and assets. Working in conjunction with the FTC, Court-appointed Monitor, and the Idaho Attorney General, Cain Brothers advised SMG on the selection of a capital and operating partner that would enable SMG to be a successful independent physician group. Following a thorough evaluation of potential options, SMG elected to enter into a long-term management services agreement with Change Healthcare.