New joint venture will bring $20 million in capital improvements and approximately $10 million to fund a community-based foundation
GALAX, Va.--(BUSINESS WIRE)-- Twin County Regional Healthcare (TCRH) has entered into a new agreement that will secure the hospital’s position as a trusted provider of quality healthcare services for years to come. The TCRH Board of Directors and Duke LifePoint Healthcare today announced they have signed a definitive agreement to jointly own and operate Twin County Regional Healthcare and its affiliated assets. The new joint venture will advance the hospital’s strategic plan to strengthen its operations and enhance medical services offered in the Twin Counties and the surrounding region.
The transaction is expected to close within the next 60 to 90 days, subject to review by the Attorney General of the Commonwealth of Virginia and the satisfaction of other customary closing conditions.
“This joint venture is an extraordinary milestone for our hospital and this region,” said TCRH President and CEO Jon D. Applebaum, MHA. “Aligning Twin County Regional Healthcare with healthcare leaders like Duke and LifePoint will provide us with the expertise and capital to ensure the availability of needed medical services to our community while maintaining the top quality care for which we are known.”
In late October, TCRH and Duke LifePoint signed a memorandum of understanding, which allowed both parties to engage in a thorough due diligence process and negotiate the terms of the definitive agreement. Under the terms of the definitive agreement, Duke LifePoint will own 80 percent of the joint venture, while TCRH will retain a 20 percent ownership stake. The joint venture also has committed to invest $20 million in capital improvements at the hospital over the next 10 years. The retained assets of Twin County Regional Healthcare and the proceeds from the transaction will allow TCRH to pay off its debt. The remaining proceeds, approximately $10 million, will be used to create a charitable foundation that will fund new programs and services in the community. Other terms of the agreement were not disclosed.
“The Twin County Regional Healthcare Board of Directors could not be more pleased about this joint venture with Duke LifePoint,” said Doug S. Vaught, Chairman of the TCRH Board of Directors. “When we began researching affiliation options for the hospital more than a year ago, it was our top priority to find a partner that would not only provide the financial and clinical resources we needed, but also would be a cultural fit with our organization. As a result of the due diligence process, our Board is even more confident that the joint venture with Duke LifePoint is right for us and our community.”
Governance of Twin County Regional Healthcare will be equally shared between TCRH and Duke LifePoint to maintain a strong community voice in the strategic direction of the hospital. An eight-member board will be established with equal representation from Duke LifePoint and TCRH.
“Twin County Regional Healthcare is an exceptional organization with dedicated leadership, medical staff and employees,” said LifePoint Chairman and Chief Executive Officer William F. Carpenter III. “Everyone at TCRH is clearly driven to provide the highest quality care to their community and the surrounding region. Twin County Regional Healthcare is a great addition to Duke LifePoint because it shares our vision of working together to make communities healthier.”
Pending approval from the Attorney General, TCRH will be Duke LifePoint’s first hospital in Virginia. Currently, the Duke LifePoint network includes Person Memorial Hospital in Roxboro, North Carolina, Maria Parham Medical Center in Henderson, North Carolina, and DLP Cardiac Partners, which offers hospital-based catheterization labs and mobile catheterization services in North Carolina.
“We are excited about the opportunity to extend Duke LifePoint’s reach into Virginia and partner with Twin County Regional Healthcare to advance healthcare in this region,” said William J. Fulkerson, Jr., MD, Executive Vice President of Duke University Health System. “Through this new joint venture, we will work with TCRH to enhance its services to better meet the needs of its community today and into the future.”
About Twin County Regional Healthcare
Twin County Regional Hospital (TCRH) is the flagship of the Twin County Regional Healthcare delivery system. TCRH is located in Galax, Virginia, the center of the Twin Counties of Grayson and Carroll Counties in Southwest Virginia, and is a not-for-profit community hospital. Centered on the mission “to promote, preserve and restore the health of our community,” emphasizing excellent service, safety, quality and efficiency, TCRH has been the anchor and the region’s leader of healthcare for more than 38 years. TCRH and its affiliates – including Twin County Family Care Centers (Behavioral Health; Family Practice in Galax & Hillsville; Pediatric Family Care Center; Twin County Ear, Nose & Throat; Twin County Rheumatology; Twin County Surgery and Twin County Urology), Twin County Health Services (The Wellness Center) and the Twin County Regional Healthcare Foundation – continually develop and improve services as well as outreach programs in response to community need based on a foundation of teamwork, compassion and respect for all. For additional information, please visit www.tcrh.org.
About Duke LifePoint Healthcare
Duke LifePoint Healthcare, a joint venture of Duke University Health System, Inc. and LifePoint Hospitals® (NASDAQ: LPNT), was established to build a dynamic network of hospitals and healthcare providers in North Carolina and the surrounding areas. The joint venture, which brings together LifePoint's experience in community-based hospital management and Duke's world-renowned leadership in clinical service, is strengthening and improving healthcare delivery by providing community hospitals the clinical, quality and operational resources they need to grow and prosper. For additional information, visit www.dukelifepointhealthcare.com.
Twin County Regional Healthcare
Martha A. Cole, 276-236-1654
Melissa Schwarting, 919-660-1303
Diane Huggins, 615-565-1817
KEYWORDS: United States North America Virginia
INDUSTRY KEYWORDS: Health Hospitals Other Health Nursing General Health Managed Care