Duke LifePoint Healthcare has signed a letter of intent to acquire Good Shepherd Health System, a two-hospital system in Longview, Texas.
The acquisition will expand Duke LifePoint's services further into eastern Texas, according to a news release. The growing 14-hospital system is a joint venture of LifePoint Health and Durham, N.C.-based Duke University Health System.
The systems are negotiating a definitive agreement, and the deal is expected to close by the end of the year.
Under terms of the deal, Duke LifePoint has agreed to invest in technology, equipment and facility improvements for Good Shepherd.
Good Shepherd, a not-for-profit system, will also be converted to a for-profit system after Duke LifePoint acquires it.
Financial terms of the deal were not disclosed.
Good Shepherd, which also operates outpatient clinics, began to look for a buyer last August. The system has experienced loss in market share and earnings for the last three years, said Steve Altmiller, president and CEO of Good Shepherd.
Duke LifePoint Healthcare, which formed in 2011, also purchased two North Carolina hospitals from Tenet Healthcare Corp. in November 2015.
Duke LifePoint combines Duke's specialty care and clinical expertise with the resources and business systems that LifePoint can bring.
