Fauquier Health inks joint venture pact with LifePoint Hospitals

The Fauquier Health Board of Directors March 5 announced it 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.

According to a news release, the proposed partnership offers many potential benefits to Fauquier Health and the communities it serves. The move will give Fauquier Health resources and support to expand and enhance services, invest in facilities and new technology, and improve efforts to recruit and retain needed physicians.

Marshall Doeller, chairman of the Fauquier Health board, was quoted in a news release as saying,  “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, the news release said. 

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.

William F. Carpenter III, LifePoint Chairman and Chief Executive Officer, was quoted as saying, “LifePoint is delighted to have been chosen as a joint venture partner for Fauquier Health.”

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.

LifePoint has an established presence in Virginia: 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, http://www.LifePointHospitals.com.