MultiCare and Overlake announce Affiliation Agreement

Overview

Deal Type Mergers & Acquisitions
Client & Transactional Partners MultiCare Health System
Overlake Medical Center & Clinics
Our Role Buy-Side Advisor

Summary

Overlake Medical Center & Clinics and MultiCare Health System announced an affiliation agreement, emphasizing its long-term commitment to delivering the highest quality, most advanced health care to communities across Washington. This transaction is subject to regulatory approval and customary closing conditions, with an anticipated closing date later in 2024.

Cain Brothers was retained by MultiCare as its advisor to assist through the affiliation process and negotiations with Overlake. Cain Brothers brought deep domain expertise in the hospital and health system sector and a strong understanding of the Washington health care market. Through this agreement, Overlake and its network of clinics will comprise the new North Sound region of MultiCare’s statewide network and will be the North Sound region’s flagship health system. The agreement includes continued local governance and management, ongoing community commitment and significant capital investment in the region.

MultiCare Health System is a not-for-profit healthcare organization that’s been caring for communities in Washington state since the founding of Tacoma’s first hospital in 1882. With more than 23,000 team members, including employees, providers, and volunteers, MultiCare has grown into one of the largest community-based, locally governed health systems in the state of Washington. MultiCare serves patients throughout the Pacific Northwest and includes a dozen award-winning hospitals as well as numerous primary care, virtual care, urgent care, pediatric care, and specialty services, including MultiCare Behavioral Health Network; MultiCare Indigo Urgent Care; Mary Bridge Children’s Hospital & Health Network; Pulse Heart Institute; MultiCare Connected Care, an accountable care organization; and MultiCare Rockwood Clinic.

Overlake Medical Center & Clinics is a not-for-profit regional health care system in Bellevue, Washington, serving the community since 1960. The health system includes a 349-bed hospital and a growing network of primary, urgent, and specialty care clinics throughout the region. Overlake is recognized locally and nationally for quality and safety, including recurring Leapfrog A ratings, Healthgrades’ Patient Safety Excellence Award, and recognition as a Best Regional Hospital by U.S. News & World Report in its Best Hospitals 2023–24 rankings. Overlake offers comprehensive advanced services, including a dedicated Cancer Center, Level lll Trauma Center, Childbirth Center, and Level lll NICU, cardiac, neurosciences, orthopedic, and mental health services. Employing more than 3,500 people, Overlake is dedicated to compassionate care for every life it touches.

Carsten Beith

KeyBanc Capital Markets is a trade name under which the corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., member FINRA/SIPC (“KBCMI”), and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and by its licensed securities representatives. Banking products and services are offered by KeyBank N.A.

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