Duke LifePoint Healthcare has closed on its acquisition
of Rutherford Regional Health System, Rutherfordton, N.C., marking its sixth transaction since its inception three and a half years ago.
The joint venture will give Duke LifePoint an 80% ownership stake and Rutherford the remaining 20%. Duke LifePoint will invest $60 million during the next 10 years on new equipment, technology and renovation projects, and the organization also will pay off Rutherford's debt and establish community wellness programs. Rutherford, which will shift from nonprofit to for-profit status, will have equal board representation from both organizations.
Duke LifePoint, a joint venture formed in 2011 between not-for-profit Duke University Health System in Durham, N.C., and publicly traded LifePoint Hospitals
, based in Brentwood, Tenn., now has four hospitals in North Carolina, one in Virginia and one in Michigan. Duke LifePoint is in the process of adding Conemaugh Health System, a three-hospital network based in Johnstown, Pa.Follow Bob Herman on Twitter: @MHbherman