Stand-alone Rockingham Memorial Hospital, Harrisonburg, Va., announced that it has signed a letter of intent to become part of eight-hospital Sentara Healthcare system, Norfolk, Va.
Rockingham to become part of Sentara
“We're at the front end of this process,” Rockingham Memorial President and CEO Jim Krauss said in a video news release. After a due diligence period, a definitive agreement will be drafted and a federal and state regulatory review will take place. The deal could close in early 2011, according to a news release.
Although some solo hospitals are remaining steadfastly independent, Rockingham Memorial officials said they saw affiliation as the key to long-term success.
"The current economics of healthcare make it difficult for independent community hospitals like RMH to survive and thrive in the long term," Barbara Stoltzfus, Rockingham Memorial board chairwoman, said in a news release. The deal comes less than two months after Rockingham opened a $300 million, 238-bed facility.
The release also said that the affiliation would not result in layoffs and that the Rockingham Memorial Hospital name would be retained. Proposed financial terms were not disclosed.
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