Brentwood, Tenn.-based Duke LifePoint Healthcare has signed a definitive agreement to acquire Conemaugh Health System in Johnstown, Pa.
Under the agreement, Duke LifePoint — a joint venture between nonprofit Duke University Health System in Durham, N.C., and for-profit LifePoint Hospitals in Brentwood — will invest more than $500 million in Conemaugh during the next decade, including $425 million in funds for services and facilities.
Duke LifePoint will acquire Conemaugh's three hospitals, as well as its outpatient centers and Conemaugh Physician Group practices. Proceeds left over from the acquisition will be used by a locally governed charitable foundation to support community needs programs. Duke LifePoint will also offer employment to all Conemaugh workers and will establish a local board of trustees consisting of local community members, physicians and a Duke representative. The two health systems — which initially signed a letter of intent this past March — expect the transaction to be complete by Sept. 1, subject to the satisfaction of the closing conditions in the definitive agreement.