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LifePoint Completes RCCH Merger, Exits Stock Exchange

Analysis  |  By Steven Porter  
   November 16, 2018

Ownership and leadership change as a result of this deal being finalized, but the name and headquarters will remain the same.

LifePoint Health, based in Brentwood, Tennessee, officially completed its merger Friday with RCCH HealthCare Partners and left the NASDAQ as part of a privatization plan.

The completion comes after shareholders expressed their approval of the deal and their disapproval of more than $120 million in so-called golden parachutes for four exiting executives in a nonbinding vote. The terms of the compensation package will be paid out as planned, a company spokesperson told HealthLeaders.

"We are officially one organization dedicated to providing high quality, community-based healthcare, and I am energized by the opportunities we have ahead of us to serve non-urban communities across the country," said LifePoint CEO David Dill in a statement Friday.

Dill's appointment to the CEO position was effective Friday, upon the merger's completion. The company's announcement noted five additional executives:

  • John Bumpus, executive vice president for administration;
     
  • Michael Coggin, executive vice president and Chief Financial Officer;
     
  • Victor Giovanetti, FACHE, executive vice president for hospital operations;
     
  • Rob Jay, executive vice president for integrated operations; and
     
  • Jennifer Peters, executive vice president and general counsel.
     

LifePoint's former Chairman and CEO William F. Carpenter III, who announced in September that he plans to retire, and RCCH's former CEO Marty Rash will be members of the privatized LifePoint board of directors.


Related: LifePoint Deal Shows Healthcare Services Assets May Be Undervalued

Related: Private Equity Fleeing Hospitals

Related: LifePoint Agrees to Merger with RCCH, Votes Down Golden Parachutes

"I'm thrilled that our organizations have come together as one and am incredibly confident in the future of the newly-expanded LifePoint Health under David Dill's leadership," Carpenter said in the statement. "Ultimately, it is the care and services that our hospitals and health systems are providing that are most important, and I know the combined team will continue our legacy of supporting our employees and caregivers so that we are Making Communities Healthier for decades to come."

RCCH is owned by funds managed by Apollo Global Management affiliates. Despite the change in ownership, the organization will continue to operate under the LifePoint Health name and continue to be headquartered in Brentwood, Tennessee.

LifePoint investors received $65 per share.

Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.


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