Conn. company buys Allegis Health Services

MARYLAND WATCH

August 02, 1996

Mariner Health Group of New London, Conn., yesterday announced a $110 million deal to buy privately held Allegis Health Services of Calverton, which owns and operates skilled-nursing facilities.

The acquisition positions Mariner in the growing local "post-acute" market, providing lower-cost care for patients after they are discharged from a hospital.

"The combination of the newly acquired facilities with our site in Laurel, Md., will establish a Mariner location within 30 miles of every major acute care hospital within the Baltimore/Washington area," said Dr. Arthur W. Stratton Jr., chairman and chief executive of Mariner.

Allegis owns five skilled-nursing facilities in the Baltimore-Washington area and leases three others. It also has units in three hospitals.

When the purchase is completed -- expected in the last quarter this year -- Mariner, which operates in 28 states, will have 78 inpatient centers with more than 10,000 beds.

Mariner will pay $95 million in cash and assume $15 million in debt. Allegis revenues for the year ended May 31 were $68.7 million. Mariner revenues for 1995 were $280.9 million.

Pub Date: 8/02/96

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