Business Roundup: Healthcare M&A Activity Brisk
The reimbursement squeeze on hospitals is on, and healthcare leaders in search of opportunity are finding partners and making deals.
As the new year unfolds and financial challenges mount, hospital executives seeking business opportunities continue to make deals with like-minded organizations.
Duke LifePoint in $120M Deal with Wilson Medical Center
Duke LifePoint Healthcare will form a joint venture with the 294-bed Wilson Medical Center in Wilson, NC, in a deal that includes $120 million in capital investments and resources to strengthen and grow the hospital.
Under the terms, Duke LifePoint would own 80% of the joint venture, while Wilson Medical Center and the community would have a 20% stake. The joint venture would commit to $120 million in capital investments at Wilson Medical Center over the next decade.
Governance of Wilson Medical Center would be shared equally by Duke LifePoint and Wilson through the creation of a 10-member board with equal representation from both organizations. The joint venture would become a taxpaying organization.
Duke LifePoint owns four hospitals, including Maria Parham Medical Center, Henderson, NC; Marquette General Health System, Marquette, MI; Person Memorial Hospital, Roxboro, NC; Twin County Regional Healthcare, Galax, VA; as well as DLP Cardian Partners, a Charlotte, NC-based company that offers hospital-based catheterization labs and mobile catheterization services.