Duke LifePoint Healthcare, a joint venture of Duke University Health System, Durham, N.C., and LifePoint Hospitals, Brentwood, Tenn., has signed a memorandum of understanding to acquire an 80% interest in a hospital in southwestern Virginia, according to a news release.
Duke LifePoint seeks 80% stake in Va. hospital
DLP Healthcare plans to form a joint venture with Twin County Regional Hospital, Galax, Va., to own and operate the 86-bed hospital. Governance of the hospital would be split 50-50, according to the release. Further negotiations and due diligence should lead to a definitive agreement in 60 to 90 days. The deal requires approval from the Virginia attorney general in order to be completed. Terms were not disclosed, but the proceeds would be sufficient to retire Twin County's debt and still leave money to start a charitable foundation, according to the release.
A joint venture with DLP Healthcare provides Twin County the clinical, quality and operational support and resources it needs to withstand changes in healthcare delivery and better recruit physicians, according to Jon Applebaum, the hospital's president and CEO.
The deal is the fourth agreement for DLP Healthcare since it was formed earlier this year and its first outside of North Carolina. DLP Healthcare has acquired one hospital and some cardiac catheterization sites already and has a deal in place to acquire a second hospital in North Carolina.
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