Health City Cayman Islands and American nonprofit healthcare company Ascension Health Ventures officially dissolved their partnership on Friday, when Narayana Health bought back 74.1 percent of the stock associated with the hospital for the sum of US$32.26 million.

The funds for the buyback were transferred on Jan. 3, and the buyback was concluded on Jan. 12. Health City is now a 100-percent owned, step-down subsidiary of Narayana Health.

“It’s like any business. It’s less cooks in the kitchen,” said Gene Thompson, the developer of Health City. “That’s the reality. The opportunity is to have full control, but in fairness, there were really no issues with that with Ascension Health. They were fantastic partners and we’re sorry to see them go.”

The two companies had partnered to bring the Health City facility to Grand Cayman in 2012, and they announced in November last year that they would be terminating their partnership.

Dr. Devi Shetty, the chairman and director of Narayana Health, has presided over the development of the 104-bed Health City Cayman Islands facility since its grand opening back in 2014. Narayana Health, according to the Health City website, currently operates 23 hospitals in 14 different cities.

- Advertisement -

Narayana Health stated in the documents announcing the stock buyback that Health City had earned US$21.3 million in the six months that ended with Sept. 30, 2017. Now, as the full owner and controller of the Health City, Narayana Health can better control the hospital’s future.

“We have a great relationship with Ascension. It was just a timing for them to refocus their energy on domestic things back in the U.S.,” Mr. Thompson said. “Part of the reason they invested is to learn about Dr. Shetty’s model, to understand the model and understand how it works. I guess they’ve felt like they’ve done that well enough. They’ve spent 3.5 years with us, so they decided to move on.”

John D. Doyle, the executive vice president of Ascension, was not immediately available for comment on Monday, but he released an official statement as part of a press release in November that explained his company’s decision to transition full ownership of the facility to Narayana Health.

“Our goal was to address unmet needs of residents of the greater Caribbean region and beyond, particularly those who are poor and vulnerable, while exploring ways to learn about different approaches to providing healthcare that might benefit our facilities in the United States and worldwide,” he said. “Our objective has been less about owning hospitals in other countries, but rather about helping those hospitals achieve success and sustainability by offering services such as resource and supply management and biomedical engineering through Ascension’s Solutions Division subsidiaries.”

- Advertisement -

Support local journalism. Subscribe to the all-access pass for the Cayman Compass.

Subscribe now