Rutherford Regional Health System, Rutherfordton, N.C., has finalized the major terms of a takeover proposal that would see the 116-bed hospital become a full member of Mission Health System, Asheville, N.C.
The two systems first disclosed plans to enter into negotiations in September. The newly signed memorandum of understanding allows Rutherford's board of trustees to complete the negotiation and due diligence process, according to a news release.
Rutherford's unanimous decision to partner with four-hospital not-for-profit Mission capped off a search effort that took the better part of last year. The deal will inject Rutherford with new capital, grow its services and help with physician recruiting. It will also allow it to draw on Mission's management expertise and realize economies of scale, according to the release.
The release added that Rutherford, also a not-for-profit, will maintain a “strong, long-term voice in the strategic direction of the health system.”
The ongoing negotiations will hammer out the details on the capital requirements, long-term investment plans and new initiatives that will be part of the deal.