Vanguard signs definitive agreement to acquire Arizona Heart Institute

Vanguard Health Systems and Arizona Heart Institute (AHI) announced today that they have signed a definitive agreement for Vanguard to acquire Arizona Heart Institute, one of the world's leading providers of cardiovascular care. Through this agreement, AHI will align with Abrazo Health Care, a Phoenix-based subsidiary of Vanguard, to become part of its distributive cardiovascular network of community-based physicians, providing future opportunities to greatly expand cardiovascular services and patient base throughout the region.

“Joining this team allows us to leverage capital and management skills associated with a larger organization, compete for insurance contracts, and ultimately improve patient satisfaction”

The purchase of the AHI by Vanguard will occur through a section 363 sale, as part of a reorganization plan. AHI believes that its voluntary decision to pursue this reorganization, along with the execution of the Vanguard definitive agreement, was strategic and in everyone's best interest, including the Institute's employees and physicians, vendors, and most importantly, its patients. The sale is subject to the approval of the court.

"We are very excited to be moving forward with Vanguard and Abrazo Health Care, as it positions us to proceed into the future and meet the challenges of healthcare reform," said Dr. Edward B. Diethrich, founder and medical director of Arizona Heart Institute and Arizona Heart Hospital. "Joining this team allows us to leverage capital and management skills associated with a larger organization, compete for insurance contracts, and ultimately improve patient satisfaction," continued Diethrich. "We have spent many months evaluating potential alliances. In Vanguard, we have found a visionary partner who is committed to address the issues most important to Arizona Heart Institute - scalable and reproducible programs, continued tradition of research and education, preservation of our identity and mission, and exemplary patient care. Furthermore, Vanguard is prepared to address the healthcare needs of our nation head-on through collaboration among clinicians, payers, and healthcare organizations, making Vanguard the best fit for us. This move signals a new chapter in Arizona Heart's future."

Vanguard, a Nashville, TN-based organization, owns and operates hospitals and health care facilities nationwide, including Abrazo Health Care's five hospitals in the Phoenix metropolitan area: Arrowhead Hospital, Maryvale Hospital, Paradise Valley Hospital, Phoenix Baptist Hospital, and West Valley Hospital. The partnership will mark Abrazo's first addition of an independent cardiovascular specialty physician practice to its local network.

"We are extremely honored and privileged to partner with Arizona Heart Institute," said Dan Ausman, president of Abrazo Health Care. "We look forward to supporting their continued delivery of advanced cardiovascular services for which they are widely known and respected."

"Arizona Heart Institute's experience, unparalleled track record for outstanding patient care, and global leadership in cardiovascular research and education are differentiators that attract Abrazo to their organization," said Ausman. "Uniting our programs will ultimately increase patient satisfaction by reducing costs, enhancing communication, increasing critical health information sharing and offering a wider variety of clinical care."

Arizona Heart Institute was founded nearly 40 years ago by world-renowned cardiovascular surgeon Dr. Edward B. Diethrich. Since its inception, Arizona Heart Institute has grown to become a model cardiovascular physician practice specializing in the prevention, treatment and diagnosis of cardiovascular disease. Under Dr. Diethrich's leadership, Arizona Heart Institute has redefined several aspects of cardiovascular medicine with achievements such as the nation's first out-patient cardiac catheterization laboratory, first heart and lung transplantation in Arizona, and the development of minimally invasive surgery for aortic aneurysms.

"The decision to transition from an independent organization was a difficult one but well justified. For many years, our financial margins were sufficient enough to provide patient care at the highest quality with the most advanced technology while also supporting clinical research and education. But in today's economic climate and declining reimbursement rates, the excessive costs to support these activities have become difficult to sustain," said Diethrich. "Substantial investments in the Arizona Heart Institute Translational Research Center, the purchase of state-of-the-art imaging equipment, and implementation of electronic medical records were initiated shortly before the unanticipated recession and have significantly contributed to our need to reorganize and proceed into the future. With Vanguard and Abrazo Health Care, our organization will have a fresh start with opportunities to expand our programs and patient base in the Phoenix Valley with our new partners," continued Diethrich.