Under the agreement, Duke LifePoint will control 80% of the flagship 86-bed hospital and other assets, and will invest $20 million in capital improvements over the next 10 years. The proceeds from the transaction will help eliminate Twin County Regional's debt, and $10 million will be used to fund the Twin County Community Foundation, a charitable organization.
An eight-member board—with equal representation from Twin County Regional and Duke LifePoint—will oversee the hospital, according to a news release.
“Our board explored potential affiliation options for TCRH for more than a year before selecting Duke LifePoint as the ideal partner for our hospital and community,” said Doug Vaught, chairman of Twin County Regional's board of directors, in a statement. “We are looking forward to collaborating with Duke LifePoint to expand the services TCRH offers, invest in new equipment and facility improvements, recruit needed physicians, and develop more specialized healthcare services here in the Twin Counties.”
The deal is Duke LifePoint's third hospital acquisition and the first in Virginia. It also operates Maria Parham Medical Center, Henderson, N.C., and Person Memorial Hospital, Roxboro, N.C.
Duke LifePoint—a joint venture between Duke University Health System, Durham, N.C. and LifePoint Hospitals, Brentwood, Tenn.—has also signed a memorandum of understanding to acquire Marquette (Mich.) General Hospital.