Fauquier Health Signs Definitive Agreement with LifePoint Hospitals
Proposed joint venture will bring Virginia community health system more than $52 million in capital investments and more than $100 million to fund a new community foundation
WARRENTON, Va.--(BUSINESS WIRE)-- The Fauquier Health Board of Directors and LifePoint Hospitals® (NAS: LPNT) have signed a definitive agreement to form a joint venture to jointly own and operate Fauquier Health, including the hospital and its related assets. The agreement, which is subject to the review and approval by the Attorney General of Virginia, will provide Fauquier Health support and resources to grow and prosper into the future.
"We are very pleased to take the next step in our potential joint venture with LifePoint Hospitals," said Marshall Doeller, chairman of the Fauquier Health Board. "This partnership offers our physicians, employees, patients and community tremendous benefits. Joining LifePoint will allow us to have the ability to enhance our services, recruit new physicians, and make investments that will help us better serve our community."
Under the terms of the definitive agreement, LifePoint would own 80 percent of the joint venture, while Fauquier Health and the Warrenton community would retain a 20 percent ownership stake. The joint venture would invest $52.8 million in capital improvements over the next 10 years, including investments in new technology, equipment and other improvements. Additionally, retained assets of Fauquier Health and the proceeds from the transaction would eliminate the health system's debt, and the remaining assets, in excess of $100 million, would be used to create a locally-governed charitable foundation to support crucial community needs.
"Fauquier Health is a great organization that plays an important role in the health and well-being of Warrenton and the surrounding region," said LifePoint Chairman and Chief Executive Officer William F. Carpenter III. "We have enjoyed learning more about Fauquier Health and working with the Fauquier board and leadership team to reach this agreement for the proposed joint venture. We are excited about the opportunities for us to work together to enhance healthcare in this region."
As part of the agreement, governance of Fauquier Health would be shared equally between Fauquier Health and LifePoint. A board with equal representation from both entities would be established to ensure that the community has an active and ongoing voice in the strategic direction of the hospital. The closing of the transaction is subject to customary closing conditions, in addition to the review and approval of the Attorney General of Virginia. Other specific terms of the agreement are not disclosed.
"Our team has been impressed by LifePoint and its ideas for the future of Fauquier Health," said Rodger Baker, Fauquier Health President and CEO. "LifePoint is known for partnering with healthcare providers across the nation to make their communities healthier. In partnership with LifePoint, we believe we can strengthen Fauquier Health even further, and make sure we are able to provide quality care for the future."
LifePoint currently has five hospitals in the Commonwealth: Clinch Valley Medical Center in Richlands, Danville Regional Medical Center in Danville, Memorial Hospital of Martinsville, Twin County Regional Healthcare in Galax (a Duke LifePoint hospital), and Wythe County Community Hospital in Wytheville.
About Fauquier Health
Fauquier Health is a non-profit community health system. A Planetree-designated facility, the organization is dedicated to high-quality, patient-centered care in a unique environment that considers the multiple facets of healing and respects the individuality of each and every patient. Located at 500 Hospital Drive in Warrenton, Virginia, Fauquier Health serves the residents of Fauquier and several surrounding counties. It comprises: Fauquier Hospital, a fully-accredited, 97-bed hospital; Fauquier Health Rehabilitation and Nursing Center, a 115-bed long-term care and rehabilitation facility; the Villa at Suffield Meadows, an assisted living facility; the Wound Health Center and a medically supervised Wellness Center offering health and wellness programs. Fauquier Health also has a 50 percent ownership in the Cancer Center at Lake Manassas, a state-of-the-art radiation treatment facility. Fauquier Health also operates ten physician's offices, including primary care and specialties. In 2012, Fauquier Health provided almost $12 million in community benefit support to its community. More information on Fauquier Health is available online at www.fauquierhealth.org or by calling 540-316-3588.
About LifePoint Hospitals
LifePoint Hospitals® is a leading hospital company focused on providing quality healthcare services close to home. Through its subsidiaries, LifePoint operates 57 hospital campuses in 20 states. With a mission of "Making Communities Healthier®," LifePoint is the sole community hospital provider in the majority of the communities it serves. More information about the Company, which is headquartered in Brentwood, Tennessee, can be found on its website, www.LifePointHospitals.com. All references to "LifePoint," "LifePoint Hospitals," or the "Company" used in this release refer to LifePoint Hospitals, Inc. or its affiliates.
KEYWORDS: United States North America Virginia
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