Premier considering moves to increase value, including possible sale

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Tech-driven healthcare company Premier is considering a number of potential strategic alternatives to enhance its value for stakeholders, including the sale of all or part of the company, according to an announcement this week.

Premier's board of directors has established an Independent Special Committee composed of independent directors to evaluate any alternatives that may involve actual or potential conflicts of interest. Working with financial and legal advisors, the board and the Independent Special Committee are considering a broad range of options, from sale to recapitalization or other partnership opportunities.

"Premier's board and management team are committed to maximizing value and determined that an evaluation of strategic alternatives is the best way to advance that goal," said Board Chair Terry Shaw. "Premier plays an integral role in the U.S. healthcare system and is a key partner to hospital systems, healthcare providers and other stakeholders across the country. Given the company's strong customer relationships, significant cash generation and flexible balance sheet, Premier has a wide range of strategic options to review."

WHAT'S THE IMPACT

Premier noted that these potential moves are not guaranteed to result in any transaction or strategic maneuver, and said there's no timeline for any hypothetical action.

The company said it won't comment further on the strategic review unless the board approves a specific course of action, or until it determines that further disclosure is appropriate or required by law.

Premier reaffirmed its fiscal-year 2023 guidance, which was updated on May 2. In light of its strategic review, Premier does not expect to provide fiscal 2024 guidance when it reports its fiscal 2023 fourth-quarter and full-year financial results in August.

ON THE RECORD

"Evolving market dynamics, coupled with an uncertain and challenging operating environment, compel us to take further action to adapt and help ensure Premier is best positioned for future success," said Premier President and CEO Michael Alkire. "While we conduct this strategic evaluation, we remain as focused as ever on supporting our members and other customers in providing high-quality, cost-effective healthcare and delivering on our mission to improve the health of communities."
 

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Email the writer: Jeff.Lagasse@himssmedia.com