Fauquier Health Signs Memorandum of Understanding to Form Joint Venture with LifePoint Hospitals
March 6, 2013
Warrenton, Virginia – The Fauquier Health Board of Directors today announced it has signed a memorandum of understanding (MOU) to form a joint venture with LifePoint Hospitals®, a leading hospital company focused on providing quality healthcare close to home. The proposed partnership offers many potential benefits to Fauquier Health and the communities it serves by providing resources and support that will allow Fauquier Health to expand and enhance its services, invest in its facilities and new technology, and improve its efforts to recruit and retain needed physicians.
“This proposed joint venture with LifePoint is a very exciting development for our hospital and community,” said Marshall Doeller, chairman of the Fauquier Health board. “By partnering with LifePoint, Fauquier Health has an opportunity to maintain local ownership and an equal voice in the governance of our hospital and also gain new financial, operational and clinical resources that will help us better serve our communities and grow and prosper into the future. We are pleased that LifePoint recognizes the value of patient-centered care, and will continue to support our very special culture.”
The MOU is a non-binding agreement that authorizes Fauquier Health and LifePoint to move forward with the necessary steps to pursue the proposed joint venture. Following due diligence and a negotiation process, which will take place over the next few months, the parties would enter into a definitive agreement. The agreement would then be subject to review by the Attorney General of Virginia before being finalized.
Under the terms of the proposed partnership, Fauquier Health and LifePoint would share ownership and governance of the hospital, with LifePoint obtaining the majority ownership interest. Governance would be shared equally between Fauquier Health and LifePoint, preserving the community’s input into the strategic direction of the hospital and health system.
“LifePoint is delighted to have been chosen as a joint venture partner for Fauquier Health,” said LifePoint Chairman and Chief Executive Officer William F. Carpenter III. “Fauquier is a great hospital with a demonstrated commitment to its patients, employees and physicians. We look forward to exploring this potential partnership further and to examining how we can collaborate to further strengthen Fauquier Health and advance healthcare throughout this region.”
The retained assets and proceeds from the transaction would eliminate Fauquier Health’s debt and allow for the development of a charitable foundation that would support crucial community health needs. Also, the new joint venture would become a tax-paying organization, providing an important source of new tax revenue to support the local economy.
“After an exhaustive search process by our board, LifePoint stood out as the ideal partner for Fauquier Health,” said Rodger Baker, Fauquier Health President and CEO. “LifePoint shares our commitment to improving the health and well-being of our community, and is dedicated to ensuring that Fauquier Health remains an excellent place to work and come for care.”
LifePoint has an established presence in Virginia. The company owns five hospitals in the Commonwealth: Clinch Valley Medical Center in Richlands, Danville Regional Medical Center in Danville, Memorial Hospital of Martinsville, Twin County Regional Healthcare in Galax (a Duke LifePoint hospital), and Wythe County Community Hospital in Wytheville.
LifePoint Hospitals is a leading hospital company focused on providing quality healthcare services close to home. Through its subsidiaries, LifePoint operates 57 hospital campuses in 20 states. With a mission of “Making Communities Healthier®,” LifePoint is the sole community hospital provider in the majority of the communities it serves. More information about the Company, which is headquartered in Brentwood, Tennessee, can be found on its website, www.LifePointHospitals.com.
About Fauquier Health
Fauquier Health is a non-profit community health system. A Planetree-designated facility, the organization is dedicated to high-quality, patient-centered care in a unique environment that considers the multiple facets of healing and respects the individuality of each and every patient. Located at 500 Hospital Drive in Warrenton, Virginia, Fauquier Health serves the residents of Fauquier and several surrounding counties. It comprises: Fauquier Hospital, a fully accredited, 97-bed hospital; Fauquier Health Rehabilitation and Nursing Center, a 113-bed long-term care and rehabilitation facility; the Villa at Suffield Meadows, an assisted living facility; the Wound Healing Center and a medically supervised Wellness Center offering health and wellness programs. Fauquier Health also has a 50 percent ownership in the Cancer Center at Lake Manassas, a state-of-the-art radiation treatment facility. Fauquier Health also operates nine physician’s offices, including primary care and specialties. In 2011, Fauquier Health provided more than $11.2 million in community benefit support to its community. More information on Fauquier Health is available online at www.fauquierhealth.org or by calling 540-316-3588.