Healthcare Business News
 

Duke LifePoint finalizes agreement to acquire Conemaugh


By Beth Kutscher
Posted: August 21, 2014 - 12:30 pm ET
Tags:

Duke LifePoint has finalized the terms of a deal that will allow it to expand into Pennsylvania, its first market in the mid-Atlantic region.

The joint venture between Duke University Health System and publicly traded LifePoint Hospitals expects to close its acquisition of Conemaugh Health System, 70 miles east of Pittsburgh in Johnstown, Pa., by Sept. 1. The transaction, announced in March, includes Conemaugh's three hospitals, outpatient centers and physician groups.

Advertisement | View Media Kit

 

Duke LifePoint is in the midst of a nationwide expansion strategy, which has already taken it into Michigan's Upper Peninsula. It also owns seven hospitals in its home state of North Carolina and one in Virginia.

The financial terms of the Conemaugh deal exceed $500 million, including a commitment to invest $425 million into Conemaugh's services and facilities over the next 10 years. Duke LifePoint also will fund a charitable foundation that will sponsor community programs.

Conemaugh's financial report for fiscal 2014 showed the system is operating with a slim operating margin of 1.5% and has cut costs to counter declining patient volume.

Under the agreement, Duke LifePoint will retain all of Conemaugh's current employees and establish a local board of trustees comprising community members, local physicians and a representative from Duke.

Follow Beth Kutscher on Twitter: @MHbkutscher


What do you think?

Share your opinion. Send a letter to the Editor or Post a comment below.

Post a comment

Loading Comments Loading comments...

Search ModernHealthcare.com:


 

Switch to the new Modern Healthcare Daily News app

For the best experience of ModernHealthcare.com on your iPad, switch to the new Modern Healthcare app — it's optimized for your device but there is no need to download.