Rutherford Regional Health System in Rutherfordton, N.C., and Duke LifePoint Healthcare in Brentwood, Tenn., have signed a nonbinding memorandum of understanding to form a joint venture.
Under the proposed transaction, RRHS and Duke LifePoint would each own the health system, which includes a 143-bed hospital, although ownership stakes were not outlined in the news release. Other financials terms of the deal were not disclosed, but the systems said proceeds and retained assets from the transaction would eliminate RRHS' debt and go toward charitable needs throughout the community.
In addition, Duke LifePoint — which itself is a joint venture between Duke University Health System in Durham, N.C., and LifePoint Hospitals in Brentwood — would help RRHS recruit physicians, expand access to healthcare services and develop new clinical programs.
Both organizations will conduct due diligence over the next 60 to 90 days, resulting in a definitive agreement. North Carolina Attorney General Roy Cooper will also have to approve the deal.
Duke LifePoint currently operates four hospitals: Maria Parham Medical Center in Henderson, N.C., Person Memorial Hospital in Roxboro, N.C., Twin County Regional Healthcare in Galax, Va., and Marquette (Mich.) General Health System. In July, Duke LifePoint also signed a deal to bring in Wilson (N.C.) Medical Center, and that agreement is going through due diligence.
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