Duke LifePoint Healthcare and Maria Parham Medical Center Sign Definitive Agreement
Community hospital to receive $45 million in capital improvements and $30 million toward a community-based foundation
Henderson, NC (July 25, 2011) – Duke LifePoint Healthcare, a joint venture of Duke University Health System, Inc. and LifePoint Hospitals®, and the board of directors of Maria Parham Medical Center (MPMC) today announced that they have signed a definitive agreement to jointly own and operate MPMC. The transaction is expected to close within the next 60 to 90 days, subject to review and approval by the Attorney General of the State of North Carolina and the satisfaction of other customary closing conditions.
"The MPMC board of directors evaluated potential partnerships for a year before selecting Duke LifePoint as our partner of choice," said Bev Tucker, M.D., Chairman of the MPMC Board of Directors. "Throughout our due diligence process, we have grown even more enthusiastic about this collaboration. Duke LifePoint brings unparalleled clinical and operational support to this community and can give MPMC the resources and expertise it needs to transform healthcare in Henderson and strengthen and grow our hospital."
Duke LifePoint combines LifePoint's extensive operational resources and experience in managing community-based hospitals with Duke's expertise and leadership in the development of clinical services and quality systems. The joint venture will improve healthcare delivery throughout North Carolina and the surrounding regions by owning and operating a network of community hospitals.
"We are delighted about the opportunity to welcome Maria Parham Medical Center as the first hospital in the Duke LifePoint system," said William J. Fulkerson, Jr., M.D., Executive Vice President of Duke University Health System. "As part of Duke LifePoint, the hospital will have access to the support it needs to better serve its community and prosper in the future."
Under the terms of the agreement, Duke LifePoint will own 80 percent of the new joint venture. The retained assets of MPMC and the proceeds from the transaction will eliminate MPMC's debt, and the remaining assets - approximately $30 million - will be used to create a locally governed charitable foundation that will fund new programs and services in the community. Duke LifePoint also has committed to investing $45 million in capital improvements at the hospital over the next 10 years.
"Maria Parham is home to a wonderfully talented group of employees and medical staff, and is an integral part of Henderson and the surrounding area," said LifePoint Chairman and Chief Executive Officer William F. Carpenter III. "We look forward to working with the hospital to recruit new physicians, provide more opportunities for staff, and enhance and expand the healthcare services available to the people in the communities it serves."
Duke LifePoint will own 80 percent of all MPMC operations and equipment, and MPMC will retain 20 percent ownership. To maintain a strong community voice in the governance of the hospital, a 10-member board will be equally represented by Duke LifePoint and MPMC appointees. A separate hospital advisory board consisting of physicians, local community leaders, MPMC President and CEO Robert Singletary and a representative from Duke LifePoint also will be established.
"A strong community hospital leads to a strong community, and Maria Parham's partnership with Duke LifePoint has great potential to significantly strengthen Vance County," said Bill Edwards, President of the Henderson-Vance County Chamber of Commerce. "This partnership will provide our community additional tax income, a new charitable foundation, and resources for physician recruitment and hospital improvements. We are proud to welcome Duke LifePoint to Henderson and look forward to working with its leaders to enhance health and healthcare in this region."
About Maria Parham Medical Center
Maria Parham Medical Center is a private, non-profit, full-service regional hospital serving the people of north central North Carolina and Southside Virginia. With a team of more than 150 physicians and 700 clinical and support staff, Maria Parham offers a wide range of services and the latest technology to meet the healthcare needs of the community. Maria Parham, located in Henderson, NC, is fully accredited by both The Joint Commission and CMS. For more information about Maria Parham Medical Center, please call (252) 436-1800 or visit www.mariaparham.com.
About Duke LifePoint Healthcare
Duke LifePoint Healthcare, a joint venture of Duke University Health System, Inc. and LifePoint Hospitals® (NASDAQ: LPNT), was established to build a dynamic network of hospitals in North Carolina and the surrounding areas. The joint venture, which brings together LifePoint's experience in community-based hospital management and Duke's world-renowned leadership in clinical service, is strengthening and improving healthcare delivery by providing community hospitals the clinical, quality and operational resources they need to grow and prosper.
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Duke Medicine Office of News & Communications
Maria Parham Medical Center