Sen­tara to ac­quire Rock­ing­ham

Pro­posed deal comes shortly af­ter new hos­pi­tal built

Modern Healthcare - - The Week In Healthcare - Andis Robeznieks

Stand-alone Rock­ing­ham Me­mo­rial Hos­pi­tal, Har­rison­burg, Va., an­nounced that it has signed a let­ter of in­tent to be­come part of eight-hos­pi­tal Sen­tara Health­care sys­tem, Nor­folk, Va. While some solo hos­pi­tals are re­main­ing stead­fastly in­de­pen­dent, Rock­ing­ham of­fi­cials said they saw af­fil­i­a­tion as the key to long-term suc­cess (July 26, p. 6). “The cur­rent eco­nom­ics of health­care make it dif­fi­cult for in­de­pen­dent com­mu­nity hos­pi­tals like RMH to sur­vive and thrive in the long term,” Bar­bara Stoltz­fus, board chair­woman, said in a news re­lease. The deal comes less than two months af­ter RMH opened a new $300 mil­lion, 238-bed fa­cil­ity.

The next step in the process will in­clude a due dili­gence pe­riod, fol­lowed by the draft­ing of a de­fin­i­tive agree­ment, fed­eral and state reg­u­la­tory re­view, and then clos­ing the deal, which could oc­cur in early 2011. The re­lease also said that the af­fil­i­a­tion would not re­sult in lay­offs and that the Rock­ing­ham Me­mo­rial Hos­pi­tal name would be re­tained.

Fi­nan­cial terms were not dis­closed.

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