First Citizens Bank Provides $24 Million for Acquisition of PAM Rehabilitation Hospital in Tulsa, Oklahoma
First Citizens Bank's Healthcare Finance business has provided $24 million to finance the acquisition of PAM Rehabilitation Hospital in Tulsa, Oklahoma. The Sanders Trust acquired the 53-bed, 60,932-square-foot freestanding inpatient rehabilitation facility. The hospital is leased to and operated by PAM Health, the third largest operator of long-term acute care hospitals and inpatient rehabilitation facilities in the U.S., with 63 facilities across 17 states.
Rance Sanders, President and CEO of The Sanders Trust, expressed satisfaction with First Citizens' financial package and banking relationship. The deal highlights First Citizens' expanding role in healthcare finance and its ability to provide tailored solutions for middle market healthcare companies.
- Successful $24 million financing deal for hospital acquisition
- Expansion of banking relationship with The Sanders Trust
- Strengthening position in healthcare finance sector
- Partnership with third largest operator of long-term acute care hospitals in the U.S.
- None.
The recent announcement by First Citizens Bank to finance the acquisition of a medical rehabilitation hospital in Tulsa, Oklahoma, holds significant implications for investors. By providing
First Citizens Bank is strategically aligning itself with PAM Health, a prominent player in the long-term acute care and inpatient rehabilitation market. This collaboration not only enhances First Citizens' portfolio but also affirms its commitment to supporting the healthcare infrastructure. For investors, this move indicates a solid revenue stream, considering the consistent demand for rehabilitation services, especially in a growing community like Tulsa. The deal's focus on long-term, steady returns suits investors seeking stability amidst economic fluctuations.
Additionally, this financing highlights First Citizens' strength in healthcare-specific financial solutions. This sector-focused expertise often leads to more robust loan performance and lesser default rates, making it a lucrative area for the bank.
From a healthcare market perspective, the acquisition of PAM Rehabilitation Hospital in Tulsa by The Sanders Trust, financed by First Citizens Bank, reflects a broader trend of consolidation within the healthcare sector. Post-acute care facilities like PAM Rehabilitation Hospitals play a critical role in the continuum of care, providing essential services that bridge the gap between hospital discharge and home care.
This acquisition is significant because it underscores the growing demand for rehabilitation services, driven by an aging population and increasing incidences of chronic illnesses. Investors should note that healthcare real estate, particularly in the post-acute care segment, has shown resilience and growth potential. The 53-bed, 60,932-square-foot facility is a substantial addition, likely to attract steady patient inflow and generate consistent revenue streams for operators like PAM Health.
For retail investors, it's important to understand that healthcare real estate investments are often seen as safe havens during economic downturns, given their stable demand and long-term lease agreements.
The Sanders Trust acquired the PAM Rehabilitation Hospital of
The hospital is leased to and operated by PAM Health. Founded in 2006, PAM Health is currently the third largest operator of long-term acute care hospitals and inpatient rehabilitation facilities in the
"We are pleased with First Citizens Healthcare Finance group's ability to arrange a solid financial package as we continue to grow our business," said Rance Sanders, President and CEO. "We highly value our First Citizens banking relationship and appreciate their efficient process and deep healthcare banking experience."
"We appreciate the opportunity to again work with The Sanders Trust as we continue to expand our banking relationship," said Steve Reedy, a managing director and head of medical office banking in Healthcare Finance.
"PAM Rehabilitation Hospital of
First Citizens Healthcare Finance provides comprehensive financing and banking solutions to middle market healthcare companies across the
About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in
MEDIA RELATIONS:
Ella Bristow
(212) 461-5322
Ella.Bristow@firstcitizens.com
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SOURCE First Citizens Bank
FAQ
What is the value of the financing provided by First Citizens Bank for the PAM Rehabilitation Hospital acquisition?
Who acquired the PAM Rehabilitation Hospital in Tulsa, and what are its specifications?
How many facilities does PAM Health operate and in how many states?