Ernest Health

Albuquerque, NM

 

WHO:   Ernest Health, Inc.
WHAT:  An investment by Medical Properties Trust of nearly $400 million in the real estate and operations of a 16-facility chain of inpatient rehabilitation hospitals (IRFs) and long-term acute care hospitals (LTACs).
WHEN:  Acquisition closed on February 29, 2012.
WHERE:  Based in Albuquerque, NM, Ernest Health now operates 17 facilities across 10 states.
WHY:   To meet the rehabilitation and extended healthcare needs of small to mid-sized markets and to provide funding for Ernest Health's continuing growth.
BOTTOM LINE:   According to Ernest Health Founder and CEO Darby Brockette, “Medical Properties Trust enabled us to keep our senior management team together and offered career growth opportunities to everyone in the company.”
Ernest Health:


Ernest Health, Inc. is a premier developer and operator of post acute healthcare facilities. Founded in 2003, the company concentrates on underserved, smaller communities where market research reveals a significant need for post-acute healthcare services. 

Ernest’s goal is to compliment the care of current healthcare providers in each market, collaborating rather than competing with them on patient care. In many of its markets, Ernest is the sole provider of rehabilitation and long-term acute care services.

Ernest Health has developed and perfected a prototype facility for the delivery of cost effective care that consistently achieves patient outcomes above national benchmarks – for patient satisfaction, functional independence and discharge rates. Once the company acquires land in a new market, this prototype can be built, furnished and ready to take its first patients within 12 months.

Throughout its history, Ernest Health has demonstrated its expertise in running efficient hospitals dedicated to high quality care. Ernest’s inpatient rehabilitation facilities have been ranked among the top five percent of more than 800 such facilities in the United States, as measured by the Uniform Data System for Medical Rehabilitation – and that ranking has held true of each Ernest rehabilitation hospital during each year of its operations.

“This commitment to outstanding patient outcomes is only one of many factors that made Ernest Health such an attractive acquisition,” said MPT Chairman, President and CEO Edward K. Aldag, Jr., noting that MPT also took an ownership position in Ernest’s operations – to increase the potential return to shareholders.

“The relationship with Medical Properties Trust means everything to our company because it gives us the ability to grow,” said Darby Brockette, CEO of Ernest Health, Inc. “Ernest has been a growth company since we commenced operations in January 2004.” And, since MPT invested in the company in 2012, Ernest Health has opened an additional facility in LaFayette, Indiana, with two others scheduled for opening in 2013 – and more on the drawing boards.

“MPT’s interests are aligned with our growth plan and everyone in the company is very supportive,” said Danny Banks, Senior Vice President of Physical Resources and a company founder. “I honestly cannot imagine us being anywhere else but with MPT.”

       

“The relationship with Medical Properties Trust means everything to our company because it gives us the ability to grow...”