Leveraging Real Estate to Bend the Cost Curve: How RTG Saved Ballad Health $9 Million Annually

Healthcare system mergers and acquisitions can be monumental undertakings, filled with numerous complexities spanning business, regulatory, and cultural challenges. When Mountain States Alliance merged with Wellmont Health to form Ballad Health, the stakes were high. With over 21 hospitals, and over 200 outpatient facilities totaling more than 3 million square feet spanning 14 counties in eastern Tennessee and southwestern Virginia, the consolidation of the real estate portfolio was a complex task that was critical to the success of the combined system.

As a continuation of our long-standing relationship with Mountain States Alliance, Realty Trust Group (RTG) served as a strategic partner and real estate advisor throughout the due diligence and implementation phases.

RTG worked closely with Ballad’s leadership team to identify and capture cost and operational efficiencies across the combined portfolio. Through a series of practice relocations, space consolidations, and lease eliminations, RTG helped Ballad achieve annualized savings of over $9 million.

To further explore the transformative potential of real estate in healthcare M&A, download our white paper, “Hospital and Health System Mergers & Acquisitions: Leveraging Real Estate To Bend The Cost Curve,” and discover how RTG’s proven strategies can unlock hidden value in your organization’s real estate portfolio.

In addition, you can visit our dedicated page for insights into Healthcare Mergers and Acquisitions. For a comprehensive understanding of all RTG services, we invite you to explore our capabilities page.

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