Sentara to acquire Rockingham
Proposed deal comes shortly after new hospital built
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.