For Immediate Release
HOSPITAL PARTNERS OF AMERICA CLOSES $55 MILLION FINANCING ROUND
Charlotte, NC (April 13, 2004) -- Hospital Partners of America, Inc. (HPA), a private owner and operator of physician-partnered general acute care hospitals, announced today that it has closed on a $55 million round of financing with a group of investors led by Tailwind Capital Partners (“Tailwind”) and New Enterprise Associates (“NEA”).
Tailwind and NEA will each invest $25 million in Series C and Series D preferred stock, with the remaining $5 million invested by QuestMark Partners.
Hospital Partners of America intends to use the equity to further its business plan of partnering with physicians to acquire general acute care hospitals throughout the country and for working capital purposes.
Todd Johnson, chief executive officer of Hospital Partners of America, said, “We are on track and well positioned to build on our recent successes. The quality of our investment partners is a strong endorsement of our progress and our vision for improving healthcare efficiency and affordability. We plan to continue pursuing acquisition and operating goals aggressively to help refocus hospital management on the needs of patients.”
“Conditions in the healthcare delivery market have created unique opportunities for growth investors,” said Lawrence B. Sorrel, managing partner of Tailwind. “HPA’s physician partnership model and focus on general acute care hospitals is a good fit with our investment expertise and objectives. HPA has demonstrated a deep understanding of market needs and operates under the direction of informed leaders who deliver results.”
Chip Linehan, Partner with New Enterprise Associates, said, “We are very pleased with the performance of HPA, and see the Company as an excellent investment of our resources. The healthcare market is in immediate need of structural changes to better serve patients and physicians, and we are highly supportive of HPA’s mission and leadership.”
Hospital Partners of America was founded in 2002 and currently operates hospitals in Austin, Texas and Houston, Texas. The Company closed on its first round of equity financing in December 2002 with New Enterprise Associates.
“In partnership with our physicians, we focus on delivering the highest quality care in an efficient manner in the markets in which we operate,” said Steve Puckett, Chairman of Hospital Partners of America. “We are very pleased with the success of this equity placement and the enthusiasm of our financial partners. The capital, expertise and relationships they provide will be invaluable to the continued building of our business and our expansion into new markets.”
About Hospital Partners of America
Based in Charlotte, N.C., Hospital Partners of America, Inc. is a privately held healthcare services company established to own and operate general acute care hospitals in partnership with leading physicians throughout the country. The Company was founded in early 2002 to deliver patient-focused healthcare in hospital settings. The Company’s approach empowers physician partners by enabling them to be involved in the development, operation and governance of the hospital. For additional information, please visit the Company’s web site at www.hospitalpartners.com or contact Todd Johnson, CEO of Hospital Partners of America, at (704) 424-6822.
About Tailwind Capital Partners
Tailwind Capital Partners is the merchant banking affiliate of investment firm Thomas Weisel Partners LLC. Tailwind manages Thomas Weisel Capital Partners, L.P., a $1.3 billion private equity fund with backing from leading institutional investors and a current portfolio of over 30 companies primarily focused in the growth sectors of the economy, including healthcare, technology and business services, and media and communications. Tailwind’s team of 20 dedicated investment professionals brings to bear an exceptional combination of private equity and operating experience and is headquartered in New York and San Francisco.
About New Enterprise Associates
Founded in 1978, NEA manages twelve partnerships consisting of $6 billion of capital. NEA acts as venture capital investors, concentrating on early stage companies in the areas of information technology and healthcare. Since 1978, more than 135 of the companies funded by NEA have gone public and the firm consistently ranks among the top venture firms based on portfolio company IPOs each year. As of 2000, NEA has financed companies whose total revenues exceeded $50 billion and whose total market value exceeded $100 billion.
About QuestMark Partners
QuestMark Partners, L.P. is an active late-stage venture group now investing from its $233 million second fund. It invests in emerging growth companies with exceptional management teams.