LifePoint Hospitals, a publicly traded health system based in Brentwood, Tenn., closed on its deal to acquire Sumner Regional Health Systems, a tax-exempt system that filed for bankruptcy in late April. LifePoint's deal to acquire Sumner Regional, which will be renamed HighPoint Health System, was first announced within days of LifePoint's May acquisition of a 100-bed hospital in Winchester, Ky.
LifePoint completes Sumner deal
LifePoint also agreed to spend $60 million over 10 years on capital projects at Sumner's four Tennessee hospitals, which include 145-bed Sumner Regional Medical Center, Gallatin; 63-bed Riverview Regional Medical Center North and 25-bed Riverview Regional Medical Center South, both in Carthage; and 25-bed Trousdale Medical Center, Hartsville. Last month, LifePoint named Mary Jo Lewis, CEO of LifePoint's Jackson Purchase Medical Center, to be CEO of Sumner Regional, Gallatin, Tenn., once the deal closed.
LifePoint paid $145 million in cash for Sumner Regional plus $11.8 million for working capital, according to Sumner Regional's consultants, Navigant Capital Advisors. Of the $11.8 million, $3 million will be held in escrow for potential adjustments after closing.
The acquisition leaves LifePoint with 52 hospitals in 17 states.
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