Person Memorial Hospital in Roxboro, NC, announced Friday that it plans to become the second hospital to affiliate with Duke LifePoint Healthcare, a joint venture of Duke University Health System, Inc. and LifePoint Hospitals.
PMH's board of trustees approved a non-binding memorandum of understanding that allows the 110-bed, community owned hospital and Duke LifePoint to negotiate the acquisition, PMC said.
"Over the last several months, our Board has been working to develop a strategic plan that will effectively strengthen our hospital for the future," Robby Jones, chairman of the PMH Board of Trustees, said in a media release. "As we explored our options to secure the future of the hospital to continue to serve the people of Person County, it became clear that an affiliation would be critical to the future of our hospital. As we explored our partnering options, Duke LifePoint emerged as a great fit for our hospital. Duke LifePoint shares our commitment to our employees and medical staff, to quality healthcare and clinical operations and to the community. We look forward to examining this proposed partnership further in the weeks to come."
Duke LifePoint is a joint venture formed last year between Duke University Health System and LifePoint Hospitals to create a network of affiliated community hospitals throughout North Carolina. The venture combines Brentwood, TN-based LifePoint's operational resources and management of community-based hospitals with Duke's clinical and quality services expertise. If the deal is finalized, PMH will become the second hospital in the Duke LifePoint network. The first hospital, Maria Parham Medical Center in Henderson, NC, entered the affiliation in January.
"Person Memorial Hospital is a great asset to the Roxboro community," said William F. Carpenter III, Chairman/CEO of LifePoint Hospitals. "Duke LifePoint has been very impressed with the hospital, and we look forward to learning more about its staff and community. We are delighted to have the opportunity to be a part of this facility's future and to partner with it to address changing healthcare needs within Person County and surrounding areas and help the hospital and its community grow and prosper."
The affiliation will give PMH access to Duke LifePoint's clinical, operational and financial resources, and is expected to bolster physician recruiting and investment in new technology and capital improvements at the hospital.
A local board of trustees and physician advisory council will be created to ensure local involvement and governance of the hospital. Proceeds from the proposed sale could be used to create a community foundation that will support local non-profit organizations.
"Duke has had a management relationship with Person Memorial for 13 years, and we are pleased to have the opportunity to expand this relationship through Duke LifePoint," said William J. Fulkerson, Jr., MD, executive vice president of Duke University Health System. "The medical staff and employees at PMH have a strong commitment to clinical excellence and patient satisfaction, and we look forward to the prospect of working together to further strengthen the delivery of healthcare services to the community."
The due diligence process is expected to take approximately 60-90 days and will involve meetings with PMH employees and medical staff and members of the community. The transaction would require the approval of the North Carolina attorney general's office.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.