Northstar Healthcare has reached an agreement with First Surgical Partners to form a new business entity, which will own and operate First Street Hospital and First Street Surgical Center, both in Houston.
Northstar Healthcare will own 51 percent of the new entity, while First Surgical Partners will own the remaining stake. Northstar will contribute $7.5 million to the new entity.
"These facilities will help Northstar diversify and expand our revenue streams. This transaction is in line with our efforts to create unique revenue generation platforms in the healthcare industry. We are extremely confident that we can materially affect First Surgical's $28 million revenue stream with the Northstar model," said Northstar president Harry Fleming.
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Northstar Healthcare will own 51 percent of the new entity, while First Surgical Partners will own the remaining stake. Northstar will contribute $7.5 million to the new entity.
"These facilities will help Northstar diversify and expand our revenue streams. This transaction is in line with our efforts to create unique revenue generation platforms in the healthcare industry. We are extremely confident that we can materially affect First Surgical's $28 million revenue stream with the Northstar model," said Northstar president Harry Fleming.
More articles on transactions and valuation issues:
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Northstar Healthcare to list common shares on U.S. national exchange
5 articles on ASC physician buy-in