Torrey J. McClary

McClary is known for her ability to structure and negotiate complex, highly regulated and innovative transactions in the health care industry. She has more than two decades of M&A experience and serves as an advisor to hospitals, academic medical centers and health systems in California and throughout the country.

She recently represented St. Luke’s University Health Network in its acquisition of Easton Hospital in Pennsylvania from Steward Health Care, a for-profit system. The hospital had faced financial challenges for months and was on the brink of closing after losses deepened in the wake of the COVID-19 pandemic.

“It was a tight turnaround because the asset was distressed, and we’re racing against the clock to try to get it done before the hospital was forced to potentially close,” McClary said.

The acquisition was completed just five months after St. Luke’s signed a letter of intent to purchase Easton. The transaction saved the struggling hospital, a much-needed resource in the region, from closure. The deal was also one of the first arms’ length hospital acquisitions since the start of the pandemic.

“We were having to think about a lot of new issues that were pandemic-related, thinking about how they impacted the transaction structure and terms,” she said. “That was truly a team effort across the board, with the client, within the firm and even with regulators. That was one of the proud accomplishments of the year in a very challenging environment.”

McClary said deals that were put on hold before the pandemic have started moving again. The pandemic has actually created opportunities for increased deal flow, she added.

Health care providers that have experienced financial deterioration and other challenges are now more willing to consider moving forward with partnerships or acquisition. The increased adoption of telemedicine and remote care are also providing new avenues for dealmaking.

McClary enjoys the complexities of her work and finding creative solutions for clients, but she also gives a lot of credit to her team.

“These deals do involve lots of moving pieces, lots of stakeholders and a lot of complicated regulatory elements,” she said. “They’re not the kinds of things I can do on my own. I end up drawing on a team of people that do a lot of the deal support, and help negotiate, manage, do the diligence and keep all the trains running on time.”

— Jennifer Chung Klam